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Analyst: Balance to Upside for Home Depot, Lowe's

Thursday, 1 Jul 2010 | 6:00 PM ET

Despite risk of a double-dip and a 2% drop in construction spending in May, BMO Capital Markets upgraded both Home Depot and Lowe's Thursday. Wanye Hood, the analyst who made the call, spoke with the Fast Money desk about the upgrades.

Call of the Day
Home Depot and Lowes are upgraded. Discussing consumer stocks, with Wayne Hood, BMO Capital Markets.

Hood says Home Depot is down 24% from its 52-week high. Lowe's is down 28%. As a result, he thinks they have been oversold and it's more likely that they go higher. Hood crunched the numbers and at current levels, even if the economy goes into a double-dip recession, these valuations are still too low.

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Trader disclosure: On July 1, 2010, the following stocks and commodities mentioned or intended to be mentioned on CNBC’s Fast Money were owned by the Fast Money traders; Seymour owns (AAPL), (BAC), (F), (MON); Adami owns (AGU), (BTU), (NUE), (C), (GS), (INTC), (MSFT); Adami’s wife works at Merck; Terranova owns (MON), (AGU), (KO), (XOM), (TEVA), (RDS.A), (GMCR), (UPL), (GS); Terranova is short gold; Terranova owns (GLD) July 123 puts; Terranova owns (GS) JULY 130 CALLS; Terranova owns (GS) JULY 135 CALLS; Grasso owns (ASTM), (ABK), (BAC), (BGP), (C), (CSCO), (DYN), (JPM), (LPX), (MO), (NDAQ), (PFE), (PRST)

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