Home Depot (HD, $277.36) and  Lowe's (LOW, $154.79) get price target hikes

Home improvement/retail companies Home Depot   and  Lowe's Companies got  their boost in share price targets from analysts at Wells Fargo and Morgan Stanley.  

Wells Fargo analyst Zachary Fadem hiked his price target on Home Depot to $300 from $295. Fadem kept an overweight rating on the shares. 

Fadem boosted his price target on Lowe's to $180 from $165, while keeping an overweight rating on the shares.The analyst mentioned that he expects Lowe's comps to edge past Home Depot’s for the second straight quarter due to its higher DIY mix, and its focus on key categories and lower exposure to recent coronavirus hotspots.

Morgan Stanley analyst Simeon Gutman increased his price target on Home Depot to $285 from $260. He kept an overweight rating on the shares. 

According to Gutman, Wall Street's estimates are too low, and expects Home Depot to report a high-teens U.S. comparable store sales figure and earnings of at least $4.00 per share. 

Gutman also hiked his price target on Lowe’s to $160 from $150, and had an overweight rating on the shares. Gutman also expects Lowe's to have better second-quarter comps than Home Depot due its higher DIY penetration.

Tickeron's Analysis- Lowe`s Cos., Inc. (LOW) vs Home Depot, Inc. (HD) Comparision :

[LOW & HD] are closely correlated.

Both companies represent the Home Improvement Chains industry

Market capitalization -- LOW: $116.1B vs. HD: $295.5B

Current volume relative to the 65-day Moving Average: LOW: 79% vs. HD: 67%

Brand notoriety: LOW and HD are both notable

Long-Term Analysis

It is best to consider a long-term outlook for a ticker by using Fundamental Analysis (FA) ratings. The rating of 1 to 100, where 1 is best and 100 is worst, is divided into thirds. The first third (a green rating of 1-33) indicates that the ticker is undervalued; the second third (a grey number between 34 and 66) means that the ticker is valued fairly; and the last third (red number of 67 to 100) reflects that the ticker is undervalued. We use an FA Score to show how many ratings show the ticker to be undervalued (green) or overvalued (red).

LOW’s FA Score shows that 3 FA rating(s) are green while HD’s FA Score has 4’s green FA rating(s).

• LOW’s FA Score: 3 green, 2 red.
• HD’s FA Score: 4 green, 1 red.

Short-Term Analysis

It is best to consider a short-term outlook for a ticker by using Technical Analysis (TA) indicators. We use Odds of Success as the percentage of outcomes which confirm successful trade signals in the past.

If the Odds of Success (the likelihood of the continuation of a trend) for each indicator are greater than 50%, then the generated signal is confirmed. A green percentage from 90% to 51% indicates that the ticker is in a bullish trend. A red percentage from 90% - 51% indicates that the ticker is in a bearish trend. All grey percentages are below 50% and are considered not to confirm the trend signal.

LOW’s TA Score shows that 2 TA indicator(s) are bullish while HD’s TA Score has 4’s bullish TA indicator(s).

• LOW’s TA Score: 2 bullish, 3 bearish.
• HD’s TA Score: 4 bullish, 3 bearish.

Industries' Descriptions

@Home Improvement Chains (+4.0% weekly)

The home improvement chains industry sells home improvement merchandise and do-it-yourself repair and building goods. Customers include individual contractors or construction managers on one hand; on the other hand, there are retail consumers who’d either buy raw materials/items from the store to do a project on their own, or pay extra for installation services. Products sold include fencing supplies, lumber materials, hardware, lighting fixtures, plumbing supplies, home decor items, bathroom remodel items, roofing materials, tools and wallboard to name a few. The Home Depot Inc., Lowe's Companies, Inc. and Floor & Decor Holdings, Inc. are some of the biggest home improvement retailing companies in the U.S. Allowing all types of customers the flexibility to choose or buy products both offline and online and then having the products shipped to the respective sites/homes are some of the potential drivers of a home improvement chain’s popularity. Many big-box home improvement chains are looking to expand their overseas presence. Supply-chain efficiency and distribution management are some of the key ingredients to grow/make profit in this industry.

HD vs LOW: Fundamental Ratings

Tickeron ratings are formulated such that a rating of 1 designates the most successful stocks in a given industry, while a rating of 100 points to the least successful stocks for that industry.

HD's Valuation (6) in the Home Improvement Chains industry is significantly better than the same rating for LOW (90). This means that HD’s stock grew significantly faster than LOW’s over the last 12 months.

HD's Profit vs Risk Rating (13) in the Home Improvement Chains industry is in the same range as LOW (19). This means that HD’s stock grew similarly to LOW’s over the last 12 months.

HD's SMR Rating (1) in the Home Improvement Chains industry is in the same range as LOW (5). This means that HD’s stock grew similarly to LOW’s over the last 12 months.

LOW's Price Growth Rating (7) in the Home Improvement Chains industry is in the same range as HD (21). This means that LOW’s stock grew similarly to HD’s over the last 12 months.

HD's P/E Growth Rating (37) in the Home Improvement Chains industry is somewhat better than the same rating for LOW (78). This means that HD’s stock grew somewhat faster than LOW’s over the last 12 months.