Patience Needed for Home Depot and Lowe’s Growth
- Lowe’s stock upgraded to Outperform by Oppenheimer analyst Brian Nagel
- Home improvement demand expected to rebound eventually
- Analysts predict long-term growth for Home Depot and Lowe’s
- Patience required as recovery may take until 2025-2026
- Average home age increases need for remodeling
- Home Depot and Lowe’s shares up around 15% and 20% respectively in 2024
Home improvement retailers Lowe’s and Home Depot have seen a slump in sales, but analysts predict long-term growth. Oppenheimer upgraded Lowe’s stock to Outperform with a target price of $305, while maintaining Home Depot at Perform with a target of $400. Despite the upgrade, both companies are expected to face near-term challenges before seeing significant improvement in sales. The average home age and demand for remodeling by baby boomers contribute to long-term growth potential. Shares have already increased around 15% and 20% respectively this year.
Factuality Level: 8
Factuality Justification: The article provides accurate and objective information about the home improvement retailers’ situation and analysts’ opinions on their future performance. It discusses the potential benefits of interest rate cuts, market trends, and long-term outlook for both Lowe’s and Home Depot. The article also includes relevant data such as stock prices and forecasts from analysts. However, it might be slightly biased towards a long-term perspective, which could make it less suitable for short-term investors.
Noise Level: 5
Noise Justification: The article provides some relevant information about the potential improvement in home improvement retailers’ sales due to interest rate cuts and long-term industry trends, but it is mostly focused on stock prices and analysts’ opinions. It contains some repetitive information and relies heavily on predictions for future growth without providing much evidence or actionable insights.
Public Companies: Lowe’s (LOW), Home Depot (HD)
Key People: Brian Nagel (Analyst at Oppenheimer), Max Rakhlenko (Analyst at TD Cowen)
Financial Relevance: Yes
Financial Markets Impacted: Home improvement retailers Lowe’s and Home Depot
Financial Rating Justification: The article discusses the impact of interest rate cuts on home improvement retailers, specifically Lowe’s and Home Depot, as well as their stock performance and future outlook. It also mentions how investors are anticipating a potential increase in sales due to aging homes and baby boomers remodeling, which could positively affect these companies.
Presence Of Extreme Event: No
Nature Of Extreme Event: No
Impact Rating Of The Extreme Event: No
Extreme Rating Justification: There is no extreme event mentioned in the article, and it does not discuss any events that happened in the last 48 hours.
Move Size: No market move size mentioned.
Sector: Technology
Direction: Up
Magnitude: Medium
Affected Instruments: Stocks
www.barrons.com 
