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In: Accounting

As an investor, discuss which company Home Depot or Lowes would choose to invest in and...

As an investor, discuss which company Home Depot or Lowes would choose to invest in and provide a rationale for your decision. Support your conclusions, why or why not?

Solutions

Expert Solution

As an investor, I would invest in Home Depot because Home Depot is driving against significant contender Lowe's. Lowe's stock has fallen 3% for the year, while Home Depot stays up for 9%.

Most importantly, Home Depot are top tier, they have the best locations, truly the best management group, and they've been developing the dividend in the 20% territory consistently throughout the previous five years, the free income is solid, well above dividend, and the online deals have been convincing at 20% or somewhere in the vicinity.

Home Depot's dividend capitulate 2.5%.

The stock is additionally back to record-breaking highs, and should keep on moving higher.

Home Depot is now attempting to break out over its February pinnacle of $247 so it's telling when you have a stock drawing near to new cycle highs with the remainder of the market so well underneath those pinnacles. That is actually an extraordinary showcase of the relative quality in that stock.

Home Depot outperformed its February peak and hit an untouched high on Monday. It is currently 3% underneath that record.


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