Lowe's Stock Is Outperforming Home Depot Stock Over the Past 5 Years, and There's a Simple Reason

In the home-improvement retail space, Lowe's Companies (NYSE: LOW) usually takes a back seat to big brother The Home Depot (NYSE: HD) in the minds of investors. But Lowe's stock is up 115% over the last five years compared to just a 64% return for Home Depot, as of Aug. 23. Simply put, little brother is outperforming, and it's time for investors to take notice.

These two companies could both be resilient additions to any portfolio. And their financial results rarely diverge greatly. However, a hidden catalyst has made Lowe's stock perform better than Home Depot stock over the last five years, and it's worth exploring.

I love the home-improvement space. There's no need to overcomplicate this part of the investment thesis: People need places to live and will spend money to maintain and upgrade their spaces.

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Source Fool.com