1. What are the current primary revenue drivers for the top two home improvement retailers in the U.S. within the Consumer Cyclicals sector (HD & LOW) ? What head/tailwinds (catalysts…no pun intended) can help grow or slow future Revenue growth?

a. What are the distribution of Sales/Revenue, across product categories and even geographic regions (if available on their Investor Relations/Annual Report site)?

2. In terms of dividend payout (ratio or Div Per Share to EPS) and dividend yield (DVP/Price) for these two stocks, why are they attractive? Are these payouts sustainable in your view?

3. Are the margins for HD and LOW, given their operating costs, sustainable? Why do you think these stocks are trading at their current P/E levels?

4. Relative to themselves and other companies in their industry group, are these stocks reasonably priced…when using their TTM P/E and PEG ratios?

5. What other qualitative catalysts that might drive future revenue and earnings growth of HD and LOW Briefly explain.

6. If you were to invest, given your fundamental analysis and the present technical condition (historical performance relative to a potential overbought or over-sold support/resistance level…using Bollinger Bands, and 50/200-day MA’s), which would you choose?

Answer rating: 100% (QA)

Here is my analysis of Home Depot HD and Lowes LOW 1 The primary revenue drivers for HD and LOW are ... View the full answer