Hewlett-Packard Company (HPQ), The Home Depot, Inc. (HD), Lowe’s Companies, Inc. (LOW): Dow Slips Further Following the Fed’s Release

Even a stock that reported strong earnings yesterday hasn’t shaken the blues today: The Home Depot, Inc. (NYSE:HD)‘s shares have fallen 0.17% on the day. The housing recovery fueled up The Home Depot, Inc. (NYSE:HD)’s finances, and the company hit all the right notes for investors as earnings jumped 17% year over year and revenue climbed nearly 10%.

The Home Depot, Inc. (NYSE:HD) followed up that good news by boosting its guidance, projecting that full-year earnings will rise 20% year over year as the housing market continues to bounce back from its recession lows. Today’s drop may not help Home Depot’s stock much, but so long as homes continue to sell, the company will have customers aplenty.

The only damper on The Home Depot, Inc. (NYSE:HD)’s optimism is that rival Lowe’s Companies, Inc. (NYSE:LOW) is closing the gap between the two home improvement retailers. Lowe’s Companies, Inc. (NYSE:LOW) generated 9.6% sales growth for stores open longer than a year. That’s more than a full percentage point lower than The Home Depot, Inc. (NYSE:HD)’s same-store sales growth, but that margin is narrower than it has been in years for the No. 2 company in the industry. It really is a case of a rising tide lifting all ships, however, and investors shouldn’t get so hung up on Lowe’s Companies, Inc. (NYSE:LOW) success that they miss out on The Home Depot, Inc. (NYSE:HD)’s.

The article Dow Slips Further Following the Fed’s Release originally appeared on Fool.com and is written by Dan Carroll.

Fool contributor Dan Carroll has no position in any stocks mentioned. The Motley Fool recommends Home Depot and Lowe’s.

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