Yesterday, $LOW's Marvin Ellison laid out his bull thesis for the Home Improvement industry by describing its 3 big demand drivers. $HD
Here's a thread summary of what he said 👇
Demand drivers for home improvement are distinctly different from those that drive home building:
Here's a thread summary of what he said 👇
Demand drivers for home improvement are distinctly different from those that drive home building:
Demand Driver #1 Home Price Appreciation.
$LOW sees no impact to sales as of yet, despite steep home price declines:
$LOW sees no impact to sales as of yet, despite steep home price declines:
Demand Driver #2 Age of Housing Stock.
A major remodeling wave is coming in 2025:
A major remodeling wave is coming in 2025:
Demand Driver #3 Disposable Personal Income.
Consumer savings are near record levels, but not only that, the undersupply of homes will be very clear by 2025 as millennials set out to buy their first homes:
Consumer savings are near record levels, but not only that, the undersupply of homes will be very clear by 2025 as millennials set out to buy their first homes:
Conclusion: $LOW are very confident in the outlook for the Home Improvement industry despite the worrying macro environment. $HD
Conclusion: $LOW is very confident in the outlook for the Home Improvement industry despite the worrying macro environment. $HD
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