Key Issue 1: Confidence in comp guidance for the back-half of the year
Key Issue 2: Confidence in margin guidance for the back-half of the year
Key Issue 3: Closing the HD/LOW Gap
Key Issue 4: Invest in HD or LOW?
Read MoreLowe's: LOW Presents an Interesting Opportunity - If You Believe Management
While its sexier competitor Home Depot gets all the attention, LOW is an interesting play at current levels. Lowe's currently trades at a similar multiple to Home Depot despite having a stronger outlook on earnings. The key to the story is whether LOW will be able to achieve its guidance (set forth by management) for the year.
Read MoreHome Price Appreciation a Positive for Home-Related Stocks
Why is price appreciation and housing turnover so important for home-related stocks? I detailed why housing turnover is important in a previous post. I'll go into the reasons why home prices have a halo effect on housing purchases here.
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