The housing crisis drags on with no end in sight, and unemployment remains high. So you'll forgive me if I find the notion of better times ahead for Home Depot
Home Depot was supposedly one of the bright spots in today's down market. Its third-quarter net income increased 21%, to $834 million, or $0.51 per share. Its profit bested analysts' expectations for $0.48 per share.
Home Depot's sales weren't mind-blowing by any stretch, although they did reach positive territory. Net sales increased 1.4%, to $16.6 billion, and same-store sales jumped 1.4%, with a 1.5% increase in the U.S.
Rival Lowe's saw net income surge 17.4%, to $404 million, or $0.29 per share. Net sales increased 1.9% to $11.6 billion, with comps increasing an anemic 0.2%. Lowe's missed analysts' expectations for $11.75 billion in revenue.
The home-improvement retailers are safer stocks than homebuilders like DR Horton
General-interest retailers like Wal-Mart, Target
Home Depot, Lowe's, and Wal-Mart are Motley Fool Inside Value picks. Wal-Mart is a Motley Fool Global Gains recommendation. The Fool owns shares of Lowe's and Wal-Mart. Try any of our Foolish newsletter services free for 30 days.
Alyce Lomax does not own shares of any of the companies mentioned. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Fool has a disclosure policy.