Lowe's vs. Home Depot: Which Stock Has More Upside?

Lowe's and Home Depot both run very similar businesses, but have had wildly different stock returns. Both stocks are in a well defined 35 year uptrend, and there's good reason to believe that they will continue to move higher in the trend channel, driven by a wave of millenials who will be upgrading to mortgage debt from student loan debt over the next two decades. But which stock has more room for upside? Let's look at the charts to determine a winner.


Home Depot and Lowe's are in well define uptrends and both have recently broke out above their 423.6% fibonacci extension level from their respective highs and lows made in the 2000s. Both charts have massive upside potential from current levels over the long term.


But which stock has more upside potential from current levels? That undoubtedly has to go to Lowe's, as it plays catch up  to Home Depot with a new management team in place. Consider that over the past 35 years, shares of Home Depot have appreciated 66,000%, while shares of Lowe's have returned ~18,000%.


Looking at the two over the past year, Lowe's has begun to outperform Home Depot for the first time in years. This trend could continue as a turnaround takes hold at Lowe's. Lowe's is playing catch-up with Home Depot, and therefore has much more upside potential as millenials fuel growth in the home improvement business.



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