Home Depot vs. Lowe's: Which is the better stock?

Filed under: Home Depot (HD), Newsletters, Lowe's Cos (LOW), Stocks to Buy

"Which is the better buy among the leading home retailing stocks -- Home Depot (NYSE: HD) or Lowe's (NYSE: LOW)?" asks Charles Payne.

In his Wall Street Strategies, the leading advisor -- and well-known panelist for Fox Business News -- explains, "The debate on which is a better investment, Home Depot or Lowe's, is now at a crossroads following the release of 1Q08 earnings results from each firm.

"As expected, both companies reported year on year earnings decreases as slowing home remodeling spend weighed on comparable store sales.

"Back in 2005-2007, Lowe's was hot the investment choice relative to Home Depot, with many citing its stronger operating margins and friendlier store shopping environment. Although Lowe's is still attracting higher income customers as a result of solid merchandise offerings and customer service, in our view one should crunch the numbers.

"When they do, it will become prevalent that Home Depot is the stronger investment in the niche at this time. The company has been ahead of the game with respect to Lowe's in drastically reducing capital expenditures and store operating outlays.

"Moreover, it has taken the fight back to its smaller rival in the area of customer service and product presentation. In our opinion, play the underdog card and look to invest in Home Depot in upcoming months given more attractive valuation."

Each day, Steven Halpern's TheStockAdvisors.com offers the latest market commentary and favorite investment ideas from the nation's leading financial newsletter advisors.

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