The Home Depot, Inc. (HD), Lowe’s Companies, Inc. (LOW): Look Beyond Home Improvement Retailers

Shares are presently trading at about $78, and its price/earnings ratio is currently 16.91. This figure along with the expected sales numbers for 2014 may make Bed Bath and Beyond a better buying opportunity than the home improvement shops mentioned here.

The Bottom Line

While the housing market has yet to fully recover, the pullback during the summer may be a temporary breather. Interest rates could go higher, but a lot depends on if and when the Federal Reserve’s easy money policy will be tapered.

In the final analysis, the next stage of the housing recovery will be a boon to the home improvement retailers. In the meantime, investors might find better opportunities in the home goods sector as shoppers are lured by Bed Bath and Beyond’s 20% off coupons readily available with the Sunday papers.

Kyle Colona has no position in any stocks mentioned. The Motley Fool recommends Bed Bath & Beyond, Home Depot, and Lowe’s.

The article Look Beyond Home Improvement Retailers originally appeared on Fool.com and is written by Kyle Colona.

Kyle is a member of The Motley Fool Blog Network — entries represent the personal opinion of the blogger and are not formally edited.

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