Lowe's vs Home Depot: Which Retailer Is The Safe Choice For Your Money?
The economy may look bleak now, but it pays to look ahead. Home improvement is expected to grow nearly 5% through 2028.
Home Depot(NYSE: HD) and Lowe's Companies have been rivals for a long time and are the two biggest companies in their field (NYSE: LOW).
Home Depot, which was established in 1978, is credited with changing the traditional hardware store.
1. Home Depot is on a roll
This year, Home Depot has demonstrated exceptional strength, delivering its highest-ever quarterly sales and earnings in the second quarter.
For the full year, Home Depot anticipates total sales increasing by about 3% over 2021 levels, with an operating margin of about 15.4%.
Lowe's started out as a general store in a small North Carolina town more than 50 years before Home Depot opened.
2. Lowe's delivers strong business sales growth
This year, Lowe's hasn't done as well as Home Depot, and in the second quarter, its sales were down a little from the same time last year.
DIY sales were lower than expected, but Lowe's made up for it with a 13% increase in "Pro" sales to contractors, remodelers, and facility maintenance businesses.
Home Depot is better than Lowe's. As the two biggest contenders in a market expected to reach $1 trillion by 2028, both home improvement stocks show long-term promise.
Which is the better buy?