Home Depot, Lowe's Are Good Long Term Bets: Barron's
Shares of home improvement retailers Home Depot and Lowe's are good long-term bets given an eventual recovery in the U.S. housing market, an article in the May 26 edition of Barron's said.
Both chains boast strong balance sheets and generate cash, and they are doing the right things to ensure their earnings and shares recover when the housing upturn occurs, probably late next year, said the report in the weekly financial publication.
Todd Lowenstein of HighMark Value Momentum Fund pegs Home Depot's fair value at between $35 and $40, according to the magazine.
Shares of the company closed Friday at $26.77.
Bear Stearns analyst Christopher Horvers estimates that Lowe's shares could be worth $32, according to the article. Lowe's shares closed at $23.30 on Friday.