By the look of it, Americans have been rolling up their sleeves during quarantine and tackling those home-improvement projects. And investors seem equally eager to build a foundation for big gains on the resurgence of DIY.
With people spending a lot more time indoors, it’s no surprise home-improvement retailers Home Depot and Lowe’s have seen a huge boost to sales—and their stocks—in the past several months.
On Tuesday, Home Depot posted impressive second-quarter earnings, with profits soaring 24.5% year over year to $4.3 billion, while sales came in at $38.1 billion. And Bank of America analysts believe it “will not be the last of [Home Depot]’s strong run,” they wrote Wednesday. Lowe’s, meanwhile, posted a 30% surge in revenue for the quarter on Wednesday, with profits jumping a massive 68.7% from the year-earlier quarter, to $2.8 billion.
“Home is definitely the one place people are spending money on,” Edward Jones’s