Today's Research Reports on Stocks to Watch: Lowe’s Companies and Home Depot
NEW YORK, NY / ACCESSWIRE / July 21, 2017 / While Sears and Amazon both saw gains yesterday on the announcement that Sears would sell appliances, some integrated with Amazon's Alexa, on the retailer's website, other appliance stocks sank. This included both Lowe's companies and Home Depot. Several analysts, however, argued that the selloff was an "overreaction."
RDI Initiates Coverage on:
Lowe's Companies, Inc.
https://ub.rdinvesting.com/news/?ticker=LOW
The Home Depot, Inc.
https://ub.rdinvesting.com/news/?ticker=HD
Lowe's Companies, Inc. shares closed down 5.56% yesterday on nearly 24 million shares traded. Lowe's shares were battered along with Home Depot, and Whirlpool, after investors worried over how much of a threat Amazon's partnership with Sears Holdings to sell appliances would be. Sears will be selling Kenmore appliances on Amazon and will integrate Amazon Alexa into the full line of Kenmore Smart appliances. Alan Rifkin of BTIG defended appliance stocks after the Amazon and Sears news and commented, "First, and most importantly, we note that terms of the Sears-Amazon agreement were not disclosed, but we have a hard time believing Sears was able to negotiate any type of exclusive rights to Alexa enabled smart appliances. Kenmore commands just ~12% of the appliance industry and has been in decline for years."
He went on to say, "We believe Alexa-enabled appliances will be broadly available in short order across most major manufacturer brands at all major retailers, including Home Depot, Lowe's and Best Buy. In our view, while appliances are well-suited for online research, most consumers prefer to then visit a brick & mortar store. It is this aspect of the buying decision that creates an impediment for Sears, even if the purchasing process began online."
Access RDI's Lowe's Companies, Inc. Research Report at:
https://ub.rdinvesting.com/news/?ticker=LOW
The Home Depot, Inc. shares closed down 4.09% on Thursday, on trading volume roughly four times higher than usual. The stock was among other appliance selling stocks including Lowes and Whirlpool, to see a loss after Sears announced a partnership with Amazon to sell its appliances on the retailer's website. According to analysts at Robert W. Baird, the selloff in both Home Depot and Lowes was the market overreacting to the news. They noted, "Appliances have been a key driver of growth for both [Home Depot and Lowe's] over the past few years … so we understand the concern the announcement creates. That said we view the [approximately] $12 billion market cap reduction in [Home Depot and Lowe's] … to be an overreaction."
Access RDI's The Home Depot, Inc. Research Report at:
https://ub.rdinvesting.com/news/?ticker=HD
Our Actionable Research on Lowe's Companies, Inc. (NYSE: LOW) and The Home Depot, Inc. (NYSE: HD) can be downloaded free of charge at Research Driven Investing.
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SOURCE: RDInvesting.com
