By Tonya Garcia, MarketWatch
“We believe that both Home Depot and Lowe’s are well positioned in the current environment and beyond, as we expect home-related retail trends to stay strong for some time,” wrote analysts led by Michael Baker.
Instinet rates both companies buy. Home Depot’s price target was moved up $10 to $266, and Lowe’s price target increased to $146 from $130.
Home Depot shares are up 34.3% over the past three months, and Lowe’s has skyrocketed 56% for the period.
Other companies are reaping the benefits from the home improvement boom. Scotts Miracle-Gro Inc. /zigman2/quotes/200553749/composite SMG -1.97% announced an upward revision of its guidance for the fiscal year ending September 30, with the company now expecting sales growth of 16% to 18%. Previous guidance was for 6% to 8% growth.
“An unprecedented number of consumers planting and maintaining gardens has led to a nearly 40% increase in consumer purchases of Miracle-Gro branded soils and more than 30% increase in plant food,” said Jim Hagedorn, chief executive of Scotts Miracle-Gro, in a statement.
“We’ve seen a more than 50% increase in purchases of Ortho outdoor pest control products and nearly 40% increase in indoor products. In fact, with the exception of mulch – which is gaining ground but still lagging last year due to a lack of retailer promotions – we have seen strong growth in every category this year.” That stock is up 31% over the past three months.
And on Wednesday, Sherwin-Williams Co. /zigman2/quotes/210069062/composite SHW -1.45% raised its second-quarter sales guidance.
“Sharp increases in domestic do-it-yourself (DIY) paint demand during a period of shelter-in-place initiatives in 2Q 2020 is leading to much better than expected sales results in Sherwin-Williams’ Consumer Brands Group and in the Americas Group businesses,” wrote JPMorgan.
Analysts rate Sherwin-Williams stock neutral and raised their price target to $555 from $520.
Sherwin-Williams shares have gained 26.2% over the last three months.
The S&P 500 index /zigman2/quotes/210599714/realtime SPX -0.15% is up 24.1% over that period.