NEW YORK ( TheStreet) -- The last time we discussed Lowe's (LOW), I said that for its own good and for the sake of investors, the retail giant, which is immured in a battle with rival Home Depot (HD), had better start improving.
Contrary to what some readers believed, I didn't think that was a huge demand. After all, "improving" is in the company's slogan. But here's the thing: Even though I wasn't particularly enamored with Lowe's recent performances, I still believed that Lowe's stock, which did not fully reflect the company's long-term potential, was a strong buy.
By contrast, I felt that shares of Home Depot had reached their peak. This is even though no one could disagree that Home Depot had meaningfully outperformed Lowe's on an operational basis.
Investors disagreed.The market had fallen in love with Home Depot, while overstating much of Lowe's weaknesses, many of which clearly just near-term struggles. In the span of two months, though, shares of Lowe's have been up by more than 12%, while Home Depot has traded flat.
Select the service that is right for you!COMPARE ALL SERVICES
Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.
- Real Money + Doug Kass Plus 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV