Home Depot (HD) is the one of world’s largest home improvement retailer. The company offers a level of service unprecedented among warehouse-style retailers. Home Depot stores cater to do-it-yourselfers, as well as home improvement, construction and building maintenance professionals. The Home Depot currently operates in the USA, Canada, Chile, Puerto Rico, and Argentina. The company also operates EXPO Design Centers across the U.S. and Villager’s Hardware in New Jersey.
Lowe’s Companies Inc. (LOW) is a retailer of home improvement products in the world, with specific emphasis on retail do-it-yourself and commercial business customers. Lowe’s specializes in offering products and services for home improvement, home decor, home maintenance, home repair and remodeling and maintenance of commercial buildings. Lowe’s principal customer groups are do-it-yourself retail customers and commercial business customers.
Neither of these companies are currently rated a BUY by our models. But, as we always note, our models run on fundamental financial data rather than news, rumors, etc. Over the past few weeks, stock in both companies has seen a run up in share prices by investors anticipating that the effects of both Harvey and Irma would boost the bottom line and quarterly results.
News media were awash in reports of the retailers moving hundreds of thousands of sheets of plywood, lots of generators, and other items needed by all those seeking to batten down the hatches ahead of the two massive storms.
Now, it is anticipated that home owners will be once again emptying the stores as they address damage and rebuild their homes.
Both retailers are ready, as they have greatly updated and expanded their supply chains so that they can ship new inventory and assist with the rebuilding phase. These retailers have worked with government officials to garner special transportation and other privileges that allows them to get quickly back up and running in the aftermath of disasters.