Home Depot Was the Best Performer in the Dow. Why the Gains Are Set to Continue Into 2022.

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Home construction and improvement stocks are poised to continue their gains in 2022, as the work-from-home trend continues, mortgage rates remain low, and property values appreciate.

In 2021, many retailers streamlined their digital businesses with their bricks-and mortar stores. The home improvement sector is no different, Joseph Feldman, assistant director of research at Telsey Advisory Group, wrote in a research note. “We expect Home Depot and Lowe’s to continue to focus on the Pro, omni-channel and merchandising,” Feldman said in an email. He rates both Home Depot and Lowe’s (LOW) Outperform, with price targets of $425 and $275, respectively. Home Depot closed Friday at $415.01, and Lowe’s was $258.48.

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