Home Depot Vs. Lowe’s

I was curious to see what the long-term trend looks like between Home Depot (HD) and Lowe’s (LOW). Below is HD’s stock price divided by LOW’s stock price (adjusted for many, many splits).

Let me preface this by saying that this is hardly sophisticated analysis. I’m basically just playing with data. However, I do think it’s interesting to see how the long-term relationship has played out.

While HD crushed LOW through through the early 1990s, LOW came back in a big way. LOW had a nice run from 1992 to 1994 and again from 2000 to 2003.

Over the last eight years, both stocks have been roughly parallel. HD has slightly outperformed LOW since October 2008 which may indicate that LOW has been hurt more by the recession. Perhaps HD does better with budget-conscious consumers.

Posted by on December 22nd, 2010 at 4:28 pm


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