Should You Ignore Home Depot and Buy This Magnificent Housing Stock Instead?

With lower interest rates, it's time to consider some housing-related stocks. The housing market is always interest-rate-sensitive due to the influence of mortgage rates on house pricing and sales. Home Depot (NYSE: HD) is an obvious choice and an acceptable and worthy option when people are spending more on their homes. Still, I think pool products and water solutions company Pentair (NYSE: PNR) is arguably a better buy for exposure to the housing market theme.Lower interest rates will inevitably improve Home Depot's prospects. That said, the stock's valuation (about 28 times the Wall Street consensus for earnings in 2024) arguably reflects the expectation that improvement is coming. And, as I previously discussed in an article on Home Depot, Home Depot's customer transactions have declined on a year-over-year basis since the second quarter of 2021.It's a pivotal marker to watch for with Home Depot because price increases might prove difficult to implement in a lower inflationary environment.Continue readingWeiter zum vollständigen Artikel bei MotleyFool Weiter zum vollständigen Artikel bei MotleyFool