Shares of Lowe's (LOW) have jumped in recent days on backs of a Trump presidency, but investors will be looking to see if the optimism is really warranted.
Jefferies analyst Daniel Binder noted there is some concern about U.S. same-store-sales, as larger items have been weak, with Binder reducing figures from 3% growth to between 2% and 2.5% for stores open at least a year. "This reflects some weakness in our field checks and what appeared to be choppy big ticket purchases in the home improvement industry this quarter," Binder wrote in a note to clients.
Like its competitor Home Depot (HD) , investors in the home improvement company have been emboldened on the prospects of what a Trump presidency will mean for Lowe's and the broader construction business. Over the past week, shares have rallied, gaining slightly less than 5%, albeit less than Home Depot.
Some of that variance may be due to concerns that Home Depot took share in the third-quarter in the home improvement market. It may have also seen less of an impact from big-ticket item weakness.
There's also the prospect that many on Wall Street consider Home Depot to be a better run company, with Oppenheimer analyst Brian Nagel calling it "more structurally sound" than Lowe's. Nagel has an outperform rating and a $80 price target on shares.
Analysts surveyed by Yahoo! Finance expect the company to earn 97 cents a share on $15.86 billion in sales.
These three ETFs may benefit if investors like what Lowe's has to say about the past 90 days and the housing market in general.