Home Depot And Lowe's Companies May Be Reaping Benefits Of Lumber Liquidators Woes

Joel Elconin is the co-host of Benzinga's #PreMarket Prep, a daily trading idea radio show.

Home Depot Inc HD shares were trading higher by $1.44 91.4 percent) at $116.19 and Lowe's Companies, Inc. LOW shares were trading higher by $0.91 (1.4 percent) at $75.00 in Monday's session.

Both companies, which announced better-than-expected earnings last week, may be getting an added boost in Mondays' session from the rout taking place in Lumber Liquidators Holdings Inc LL. That issue was trading lower by $11.00 at $40.80.

See Also: 8 Damning Quotes From The 60 Minutes Exposé On Lumber Liquidators

Lumber Liquidators, which reached $69.99 last Wednesday, has been under selling pressure since the company announced the possibility of a DOJ investigation. The downward spiral was exacerbated by a negative "60 Minutes" piece on the company Sunday night.

Investors may be banking on consumers abandoning Lumber Liquidators for the flooring and other wood products in favor of the more trusted household names.

Neither of the two issues have reached its all-time highs that were put in place last week following the earnings beast. The all-time high for Home Depot stands at $117.92 and the all-time closing high is $116.75. The all-time high for Lowe's Companies stands at $75.82 and the all-time closing high is at $74.65.