So the companies are strong. Is this likely to continue?
The answer is simple: yes. The Home Depot, Inc. (NYSE:HD) and Lowe’s Companies, Inc. (NYSE:LOW) are the only home improvement chain stores in the United States. Most likely, if you ever need some hardware, wood, nails, or other building materials then you will end up buying it in one of these stores.
Additionally, the housing market outlook is improving. New homes orders are improving across the board. The number of professional customers for these stores is likely to increase as a result which will in turn bring additional revenues.
Hopefully, the odds will continue to be stacked in our favor. Having a good market outlook, declining unemployment rates, low mortgage rates, rising new home orders, solid balance sheets, and almost total market share make for great odds. The Home Depot, Inc. (NYSE:HD) and Lowe’s Companies, Inc. (NYSE:LOW) especially will bring you capital appreciation in the future. You are not too late to being your investment, since the movement of these companies is barely starting.
Robinson Roacho has no position in any stocks mentioned. The Motley Fool recommends Home Depot, Lowe’s, and Lumber Liquidators. The Motley Fool owns shares of Lumber Liquidators.
The article Invest in the Improving Housing Market and Sleep Well originally appeared on Fool.com.
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