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It's pretty good run for shares of Home Depot and Lowe's the home improvement retailer is up nicely over the year.
But struggling since the start of July Home Depot is down 4% closes down 10%.
Since the start of the month a look at that chart there were way -- So what is causing the drop in should investors be worried joining us today is Brian -- Oppenheimer managing director and senior analyst.
Brian thanks so much for joining us but but for having -- So you say that we shouldn't get caught up in the near term decline you think there's a lot of untapped.
Earnings potential here why do you think that.
Absolutely so I think -- look I think the stocks have been pulled back a little bit here just on concerns of Michael seasonal sales slowdown in New -- in your opening segment you're talking about.
It's routes across much of the country that's two and a certain extent have an impact upon sale sit at Home Depot -- but -- -- -- much bigger story here is.
That'd be improving housing environment United States and to what extent that's a drive much better results -- He's -- -- change over the next several quarters and years.
Ask you a little bit about that -- you think the -- is having an impact right now how how would how does the drought impact Home Depot Lowe's.
What couple -- -- -- -- almost to a decent out of seasonal business summit that is your plants in any end in lawn care of sort.
And we and it can't be -- the droughts have caused.
You're you'll want to die here you probably not -- outlaw so.
It's hurting their seasonal business it does help on the other side of -- because because people to tested by more air conditioners and fans.
Right I think they wouldn't be out buying more stuff they would be more desperate about their plants in their line they would be going -- at Lowe's and Home Depot in order to -- stuff to help them out.
Talk to save -- if -- because in the midwest couple weeks ago.
For the 4 July holiday and a lot of ones out there are -- debt to you have probably your for your public not feeding those want to this point okay.
-- -- -- -- -- -- -- -- -- -- -- -- You also think that the warmer nicer weather -- this spring pulled forward a lot of business that we would be seeing right -- the weather was good.
So people went and they got started on sort of their spring summer projects early got make sense.
So why do you think going forward that that Home Depot is the pick of the -- Well home -- right now this is is not doing with the just the internal issues -- -- -- put out by number I have live about now while we don't lows as well some.
Got hot coffee prospects over water top -- that -- as well I think.
You're Home Depot they did a lot through the economic downturn to improve their business model.
They implemented a new distribution system they've been fix a lot -- -- other -- technology system so.
I think now there really well positioned to benefit as demand begins to improve here.
But we're looking at a chart at Home Depot and it's it's less beaten down of the two of them I -- you still think that's good -- I think self -- I'd look at the other -- that got to -- -- all the -- our clients you know if you go for the cheaper stock great.
The better performance stock I think in the nearer term -- setting the better performing company right now probably you're better investment now.
As -- look out over the next couple years in my view that the US housing market is indeed getting better.
Probably doesn't make a difference and probably -- stocks and work well together.
-- frank Nagle thanks for joining us existing -- there but Chapman.
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