Dear Valued Visitor,

We have noticed that you are using an ad blocker software.

Although advertisements on the web pages may degrade your experience, our business certainly depends on them and we can only keep providing you high-quality research based articles as long as we can display ads on our pages.

To view this article, you can disable your ad blocker and refresh this page or simply login.

We only allow registered users to use ad blockers. You can sign up for free by clicking here or you can login if you are already a member.

The Home Depot, Inc. (HD), Lowe’s Companies, Inc. (LOW): Invest in the Improving Housing Market and Sleep Well

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.

Copyright © 1995 – 2013 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.

DOWNLOAD FREE REPORT: Warren Buffett's Best Stock Picks

Let Warren Buffett, George Soros, Steve Cohen, and Daniel Loeb WORK FOR YOU.

If you want to beat the low cost index funds by 19 percentage points per year, look no further than our monthly newsletter.In this free report you can find an in-depth analysis of the performance of Warren Buffett's entire historical stock picks. We uncovered Warren Buffett's Best Stock Picks and a way to for Buffett to improve his returns by more than 4 percentage points per year.

Bonus Biotech Stock Pick: You can also find a detailed bonus biotech stock pick that we expect to return more than 50% within 12 months.
Subscribe me to Insider Monkey's Free Daily Newsletter
This is a FREE report from Insider Monkey. Credit Card is NOT required.