Hood Likes Home Depot (HD) And Lowe's (LOW)

Retail analyst Wayne Hood of BMO Capital Market was on the CNBC Fast Line today. Hood is bullish on Home Depot (HD) and Lowe's (LOW). He has upgraded the stocks to market perform believing that these 2 stocks have bottomed up. He loves the business models at both companies and believes that they will thrive even in an economic slowdown. Hood cited the huge free cash flows generated by both firms as positives for the stock. Both stocks are getting cheap but Home Depot is the better play. Home Depot currently trades at $27.92 which is just 12 times next year’s earnings estimates. Lowe’s Companies trades at $20.41 which is just 13 times next year’s earnings estimates.