Home improvement stocks have been on fire in 2020, but one analyst said Thursday that Home Depot Inc (NYSE: HD) is a better play for investors than Lowe’s Companies Inc (NYSE: LOW) heading into 2021.
The Analyst: Gordon Haskett analyst Chuck Grom upgraded Home Depot from Accumulate to Buy and reiterated a $315 price target. Grom downgraded Lowe’s from Buy to Accumulate and cut the price target from $205 to $181.
Related Link: Wall Street Weighs In On Home Depot’s Blowout Q2, BofA Upgrades Stock
The Thesis: Home Depot is expected to report third-quarter earnings Nov. 17, and Lowe’s is expected to report Nov. 18.
In the new note, Grom said he is still bullish on both home improvement leaders and expects big earnings numbers from both next week.
Lowe’s outperformance relative to Home Depot in 2020 has come in large part from its relatively higher exposure to do-it-yourself customers