No.1 - Fixer Upper?
By: Lee Brodie | Producer
Few stocks are more closely tied to the housing market than Home Depot (HD) and Lowe's (LOW). Therefore, it comes as little surprise that both stocks are down year-to-date as the rest of the market rallies.
Both retailers are set to report earnings in the next 6 trading days-with Home Depot out on Tuesday and Lowe's the following Monday. Analysts expect Home Depot to say that per-share earnings dropped 15%.
Considering the bullish sentiment in the market, are these stocks the classic fixer-upper or the proverbial a money pit?
Karen Finerman says she’s a Home Depot bull. She explains that sentiment is terrible and expectations are low which she thinks presents a buying opportunity. She adds HD has a great balance sheet that’s “way too under-leveraged.”
Guy Adami says he’s a little less bullish on Home Depot because they don’t have great exposure overseas.
Eric Bolling likes Home Depot as a hurricane play. He expects an active storm season.
Jeff Macke sees a lot of upside in Home Depot because of their new CEO.
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Trader disclosure: On May 11, 2007, the following stocks and commodities mentioned or intended to be mentioned on CNBC’s Fast Money were owned by the Fast Money traders
Bolling Owns (ICE), (NMX),Gold, Silver; Finerman and/or her Firm Owns (BBI), (KBR), (HD), (FLS), (CX), (ASD), (WMT), (TYC), (GS), (INWK); Finerman's Firm Is Short (HAL)
