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[Logo]( Proprietary Data Insights Top Home Improvement Retail Stock Searches This Month Rank Ticker Name Searches
#1 [HD]( Home Depot 32,396
#2 [LOW]( Lowe’s 14,022
#3 [HVT]( Haverty Furniture 1,189
#4 [RH]( RH 17
#ad [Adding Color to the Investment Spectrum]( Brought to you by [Contrarian Outlook]( [How to Retire Comfortably On Just $500,000]( [ Contrarian Outlook - How to Retire Comfortably On Just $500,000]( Saving up half a million bucks for retirement is certainly no small task, but it's not going to generate much income these days if you follow traditional portfolio strategies. There are, however, still plenty of opportunities to secure meaningful income right now... if you know where to look. Payouts that could let you live comfortably in retirement, without drawing down your nest egg or worrying about running out of money. [Click here for all of the details.]( 2 Housing Stocks Set To Soar In 2025 In terms of home improvement retail stocks, there are really only two that investors care about. As reflected in Trackstar, which monitors search interest across our 100+ financial media partners, Home Depot (HD) and Lowe’s (LOW) capture a vast majority of the attention. And The Juice thinks these stocks will start seeing more eyeballs headed into the new year. Over the past six months, HD is down roughly 3.5%, while LOW is up only around 2.0%. This is compared to approximately 8.5% worth of upside in the SPDR S&P 500 ETF Trust (SPY), but even more interestingly, about a 9.5% pop in Procter & Gamble (PG), 18.2% in McCormick & Company (MKC) and a 22% in Coca-Cola (KO) over the same period. This is all in line with [what we have been predicting](. A return to [dividend stocks](, particularly dividend stalwarts. Stock Dividend Increase Streak (years) Dividend yield HD 15 2.5% LOW 53 1.9% PG 69 2.3% MKC 37 2.1% KO 63 2.7% All nice dividend yields to catch and impressive dividend increase streaks to ride, particularly if they come along with a rising stock price. While there are times to use dividends to ride out a weak stock price (e.g., you’re a long-term investor with less worry about near-term moves, interest rates on cash are lower), there are other times when it’s less than optimal. In an environment where you can easily score 5.0% on your cash — risk-free — a 2.0% yield with a stagnant or declining strike price is hardly attractive. And that’s what makes names such as PG, MKC and KO so attractive as [we anticipate fed rate cuts](. You’re seeing [unrealized capital gains]( and reinvesting solid dividend income. It’s the best of both worlds for investors. So why have HD and LOW been relatively silent during this rally? The Juice thinks it’s obvious— - There has been a lack of activity in the housing market due to high rates.
- Homeowners who would like to sell have been waiting. While they’re waiting, they’re not spending money on home improvements.
- There aren’t enough new homeowners spending on home improvements. While this is great if you don’t like long lines and chaos at Home Depot and Lowe’s, it’s not great for either companies’ numbers. - While Home Depot beat expectations during its last quarter, net income and comparable store sales dropped and revenue only increased slightly. The company expects full-year comparable store sales to decrease by between 3% and 4% year over year.
- Similar story at Lowe’s. The company beat expectations on earnings, but missed on sales in August and expects sales to decrease annually. Both retailers blamed inflation and consumer uncertainty for their problems. We’ll keep it simple. We think this is an excellent time to buy both of these stocks. And to keep buying, specifically if you’re a long-term investor. Because — over the long haul — they’re going up. And we don’t think you’ll even have to wait very long. Home Depot and Lowe’s are likely going to be 2025 stories. At the moment, we’re not seeing a big surge in mortgage applications even as interest rates drop. The 30-year is at about 6.4%. So that’s still a hefty monthly payment on even a $500,000 property. If you put 10% down, you’re still on the hook for $3,688 a month, inclusive of taxes and insurance. To be able to afford that payment, you still need to earn $12,293 each month. That’s out of reach for many people and a stretch for quite a few more. Plus, the Fed hasn’t even cut rates yet. The Juice thinks people are waiting to see what happens in September and maybe even November with the election. What will an actual Fed cut do to mortgage rates? And how will any uncertainty around the election impact society and the economy? Whatever happens, expect the dust to settle in 2025 like it always does. Expect rates to come down a bit more. Expect buyers to come off of the sidelines in droves. This will not drive prices down. Instead, it will create bidding wars of epic proportions where buyers in the strongest financial positions help send prices to new all-time highs. As the housing crisis intensifies, it will actually be good news for Home Depot and Lowe’s. The people who waited to sell will end up making improvements in their new home. Because they’ll need someplace to live and might be accommodating a growing family. The people who waited to buy — likewise. We generally don’t like weak stocks with good dividends. This is an exception. Because HD and LOW have merely taken breathers. So this is a good opportunity to buy the stocks cheap and enjoy the dividend income (reinvest it!) while you wait. [Gold's Breaking $2,500 - 10 Stocks Set to Explode]( Free report reveals miners with 60+ years of reserves... Hidden gems outperforming for 15 straight years... Rock-bottom production costs, massive growth potential. BONUS: Top 4 Gold ETFs for easy exposure. [Don't miss out - Claim your FREE report here.]([Ad] The Bottom Line: All of this is really just another sign of [the haves and have nots economy]( The Juice writes about so frequently. As housing becomes less affordable, there are still more than enough people positioned to take the plunge. They’re the ones spending money in restaurants and bars. And, soon enough, in Home Depot and Lowe’s. PG, MKC and KO are low-hanging fruit as inflation eases. People need the basics and they can work them into their budgets. They might be able to pull back on any sacrifices made when things were really bad. This isn’t the case for housing and housing-related spending. The people who are prospering drive this spending and they’re about to kick that spending into high gear soon after we turn the page on the new year. Call it a mid-2025 event. So buy HD and LOW now. [-facebook-share]( [-twitter-share]( [-linkedin-share]( [-email-share](mailto:?body= https%3A%2F%2Finvestingchannel.com%2F%3Fp%3D628119?utm_medium=ic-nl&utm_source=121810 ) News & Insights Freshly Squeezed - [Use Any Weakness To Buy Nvidia’s Stock](
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1325 Avenue of the Americas, Floor 27 & 28 New York, New York 10019 Disclaimer: This is not investment advice. This InvestingChannel, Inc., newsletter is for information purposes only and is based on opinion. Futures, forex, stock, and options trading are not appropriate for all investors. There is a substantial risk of loss associated with trading these markets. Losses can and will occur. No system or methodology has ever been developed that can ensure returns or eliminate losses. InvestingChannel, Inc., makes no representation or implication that using any of the methodologies or systems in this newsletter will generate returns or insure against losses. Investors should be cautious about any and all investments and are advised to conduct their own due diligence prior to making any investment decisions. [Link](