Dow stock Home Depot and Lowe's are surging, and some see new highs ahead

Big box is enjoying a big rally.

Shares of large retail chains like Lowe's, Costco, Home Depot and Target are surging in the last month, with a respective 16 percent, 10 percent, 8 percent and 7 percent gain in that time.

The move comes amid a broader rally in the retail space, and what experts say is a short-term jump spurred by Hurricane Florence preparation. But beyond the boost from the hurricane, some investors see long-term value in the space.

"Of these four stocks, these are all amazingly defensive names. They have great stories. Of the four, I would say that Lowe's is a dividend payer, and also has a lower [price-earnings ratio]. Home Depot is trading at 24 times, Lowe's is trading at 17 times," said Gina Sanchez, CEO of Chantico Global Sanchez, Tuesday on CNBC's "Trading Nation."

While Home Depot has enjoyed a big rally, Mark Newton, founder and president of Newton Advisors, sees even more room to run from a technical perspective.

Newton said Tuesday on "Trading Nation" that while the charts of both Home Depot and Lowe's look attractive to him, reflecting technical breakouts above their January highs, Home Depot may be the better pick.

"I tend to favor Home Depot only because it's been a long-term leader, and when you look on a relative basis, it's consistently outperformed Lowe's over time. In the last few months, Lowe's has actually done a bit better, but near term, Home Depot makes sense for me," Newton said.

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Trading Nation is a multimedia financial news program that shows investors and traders how to use the news of the day to their advantage. This is where experts from across the financial world – including macro strategists, technical analysts, stock-pickers, and traders who specialize in options, currencies, and fixed income – come together to find the best ways to capitalize on recent developments in the market. Trading Nation: Where headlines become opportunities.

Michael Santoli

Michael Santoli joined CNBC in October 2015 as a Senior Markets Commentator, based at the network's Global Headquarters in Englewood Cliffs, N.J.  Santoli brings his extensive markets expertise to CNBC's Business Day programming, with a regular appearance on CNBC's Closing Bell (M-F, 3PM-5PM ET). In addition, he contributes to CNBC and CNBC PRO, writing regular articles and creating original digital videos.

Previously, Santoli was a Senior Columnist at Yahoo Finance, where he wrote analysis and commentary on the stock market, corporate news and the economy. He also appeared on Yahoo Finance video programs, where he offered insights on the most important business stories of the day, and was a regular contributor to CNBC and other networks.

Follow Michael Santoli on Twitter @michaelsantoli

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