Home Depot and Lowe's shares touch all-time highs. 3 reasons why the upward trend can continue

Key Points
  • A hot real estate market and the changing ways that people use their homes could drive sales for Home Depot and Lowe's in the coming quarters.
  • Faced with a tight housing market, builders may need supplies for construction, homeowners may renovate or remodel and house-hunters may wind up with fixer-uppers.
  • The pandemic has ingrained homebody habits, too, such as working remotely part of the week, which can cause wear-and-tear.
An aerial view of a construction worker roofing an apartment home on May 27, 2020 in Uniondale, New York.
Al Bello | Getty Images

Stuck-at-home Americans tackled long-delayed home repairs during the pandemic. They fought boredom with do-it-yourself projects. They made their houses cozier and more functional.

That has paid off for Home Depot and Lowe's. Home Depot's shares have risen 80% and Lowe's shares have soared by about 170% over the past 12 months. Unlike some pandemic beneficiaries, their share prices have not fallen off in recent months. Both home improvement retailers hit fresh all-time highs on Tuesday.

As investors make post-pandemic bets, there are some factors that are keeping these companies attractive to own, namely the hot real estate market and the changing ways that people use their homes.

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