Lowe’s Companies, Inc. (LOW), The Home Depot, Inc. (HD): The Two Walks of the Housing Recovery

Housing Market

Builders FirstSource, Inc. (NASDAQ:BLDR) expects single family housing starts will grow approximately 24% by the end of 2013. With the largest decline in housing starts since the Great Depression, new housing starts have fallen by 73% from the 2005 peak to the current trough. According to the latest report from the
Census Bureau and HUD
, Building Permits have increased 35.8% since 2012. Additionally, housing starts have increased 13.1% for 2013 with a 3.3% increase in housing completions for the year.

The Bottom Line

Although I believe that both Lowe’s and The Home Depot, Inc. (NYSE:HD) are long term buys, I think that The Home Depot, Inc. (NYSE:HD) will continue to provide exceptional growth in the years to come. Home Depot has proven that they have kept quality product lines while providing excellent customer service on a consistent basis. With new home starts continuing to rise and economic conditions continuing to improve, Home Depot has proven that a strong brand mix, with a focus on home improvement, is the way to drive growth year after year.

Kaitlyn Tokay has no position in any stocks mentioned. The Motley Fool recommends Home Depot and Lowe’s. Kaitlyn is a member of The Motley Fool Blog Network — entries represent the personal opinion of the blogger and are not formally edited.

The article The Two Walks of the Housing Recovery originally appeared on Fool.com is written by Kaitlyn Tokay.

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