Lowe's - LOW

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I like Lowe's here for a few reasons. The first part I love is the sector. In a good economy people continue to do renovations, both from the DIY crowd and professional contractors. But even if the economy softens I could see this sector holding up well. Everyone knows Home Depot is the gold standard in this space but I think that's precisely why I like Lowe's - there is a ton of room for improvement.


Lowe's margins haven't been great and their sale conversions could improve as well. Making the online business more robust, improving supply chain and pricing issues, and executing better on all cylinders could really make a huge difference to this business. If they can execute the necessary changes there is no way Home Depot trades at such a premium to Lowe's - which is why I think it is the better investment among the two.

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