The Home Depot, Inc. (HD) or Lowe’s Companies, Inc. (LOW) — Which Is a Better Pick?

The road ahead
Lowe’s also plans to grow and expand its reach through a number of moves, such as hiring more workers and improving its inventory. It has been focusing on its product lines in order to offer the best-suited products to its customers. Resetting areas of its stores might also lure in new customers.

Moreover, the home-improvement retailer declared that it plans to open 10 new stores during the fiscal year. Also, Lowe’s Companies, Inc. (NYSE:LOW) will be acquiring 72 new stores from Orchard Supply Hardware. Orchard Supply Hardware is based in California, and Lowe’s is looking to increase its presence in that particular market with this acquisition. This will not only provide a great growth opportunity for Lowe’s, but will also help it better compete with The Home Depot, Inc. (NYSE:HD), since the latter already has a strong presence in the region.

In spite of all the positives, such as increasing demand, an improving housing sector, and growing companies, there is a matter of concern for these retailers. Rising mortgage rates might be a deterrent to the growing demand for housing sales and home improvement retailers.

Final thoughts
There has been a steady growth in demand, and people have started spending on their homes more than before. Additionally, these companies have been growing continuously and expect further growth, as highlighted by their upgraded guidance.

Lowe’s Companies, Inc. (NYSE:LOW) boosted its earnings guidance for the fiscal year to $2.10 per share from $2.05 per share previously, which reflects optimism by the company. Lowe’s strategies have been working well, and the company is trying harder than ever to compete with The Home Depot, Inc. (NYSE:HD). I believe investing in this company might prove rewarding in the months to come.

The article Home Depot or Lowe’s — Which Is a Better Pick? originally appeared on Fool.com and is written by Pratik Thacker.

Pratik Thacker has no position in any stocks mentioned. The Motley Fool recommends Home Depot.

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