The Home Depot, Inc. (HD), Lowe’s Companies, Inc. (LOW), Fastenal Company (FAST): Ride the Resurgence of the Housing Market With These Stocks

When looking at fundamentals, Lowe’s Companies, Inc. (NYSE:LOW) is trading with a similar premium (18%), but more conservative earnings and revenue estimates than the competition. Financially, the company is also facing a growing debt issue because cash flow and revenue have stagnated during the last four years.

In all, Lowe’s Companies, Inc. (NYSE:LOW) has performed well in the past, increasing revenue and rewarding shareholders. But today, the situation is different and the sweet spot for buying stock is gone. It is recommended to hold until the end of the summer season to see whether the firm is able to pick up again.

Bottom line

It is recommended to buy Fastenal Company (NASDAQ:FAST) or The Home Depot, Inc. (NYSE:HD) because business model restructuring will allow them to better seize the opportunities provided by the U.S. economic recovery. Lowe’s Companies, Inc. (NYSE:LOW) is not a bad stock, but its current standing is below the competition. Also, the growing cycle is past its peak and competition has put noticeable pressure by chipping into revenue.

Damian Illia has no position in any stocks mentioned. The Motley Fool recommends Home Depot and Lowe’s.

The article Ride the Resurgence of the Housing Market With These Stocks originally appeared on Fool.com.

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