TheStreet's Jim Cramer talks about what to look for in Lowe's and Home Depot earnings.
NEW YORK (TheStreet) -- Lowe's Cos. (LOW) - Get Report stock is declining 0.98% to $68.79 on Tuesday morning even though analysts anticipate the home improvement retailer to report year-over-year growth in profit and revenue for fourth quarter 2015.
Wall Street is looking for a profit of 59 cents a share on revenue of $13.07 billion for the latest quarter set to be released on Wednesday before the market opens.
A year ago, Lowe's earned 46 cents on revenue of $12.54 billion.
TheStreet's Jim Cramer is focusing on both Lowe's and Home Depot (HD) earnings saying, "Both of these companies are great, but in the end, Home Depot is maybe the greatest retailer in America."
"While increasing macro concerns have emerged in recent weeks, we maintain a sanguine outlook," Wedbush Securities said, also addressing the two companies.
Particularly, analysts are bullish on Lowe's options as its put-to-call open interest ratio is about the most positive it has been since September 2013, Reuters reports.
Additionally, consumers are able to spend more on purchasing home improvements with money saved from lower oil prices.
Separately, TheStreet Ratings currently has a "Buy" rating on the stock with a letter grade of A-.
The company's strengths can be seen in multiple areas, such as its impressive record of earnings per share growth, compelling growth in net income, revenue growth, reasonable valuation levels and notable return on equity. We feel its strengths outweigh the fact that the company has had generally high debt management risk by most measures that we evaluated.
Recently, TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this articles's author.
You can view the full analysis from the report here: LOW