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Housing market recovery to benefit home improvement retailer Lowe’s (low) outpaces rival Home Depot (HD), said David Bellinger, director of Mizuho Americas.

The reason is that Lowe’s is increasingly getting into DIY home improvement.

“What we like most, especially Lowe’s, is that they have a much larger DIY business. That’s about 75% of sales,” Bellinger told us Yahoo Finance Live “Home Depot accounts for about 50% of sales, which we believe positions Lowe’s to better capitalize on the early shift in existing home sales.”

The housing market is largely at a standstill, with buyers and sellers on the sidelines amid high mortgage rates, which are expected to be cut by the Federal Reserve this year, effectively lowering borrowing costs.

Lowe’s comparable sales fell 6.2% in the latest quarter due to lower home improvement spending. Mizuho expects comparable sales to turn positive in the second half of this year.

He said Lowe’s presence in categories like paint and outdoor seasonal appliances could be “a bit of an advantage” because homeowners typically spend more in the first few years of owning a home.

At the same time, Bellinger noted, the housing stock is aging, with about 50% of the homes being 40 years old or older. This could be a boon to the home improvement industry as a whole.

“These homes tend to be leaky buckets. You always need to do some kind of maintenance activity,” Bellinger said. “We do see the potential for this remodeling renaissance or remodeling boom to happen over the next few decades, and Home Depot and Lowe’s are positioning their businesses for this.”

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