For many companies in the Home Improvement Stores sector, recovery from the lows of the recession and the collapse of the housing market has been very slow. There have been significant signs of an upturn for many of these companies though, as some of the largest competitors in the industry like
http://signalwatcher.com/HD/July282011.php or
http://signalwatcher.com/LOW/July282011.php
These gains could be attributed to a rise in new home construction numbers and better-than-expected earnings from many major corporations in general. Both companies have also been credited with helping their recovery through downsizing their operations and cutting costs in the weakened economy.
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One issue of concern that will probably affect all companies in the sector is the rise in commodity costs. Small price increases for companies in the sector may be needed to counter rising costs. With consumers already more price conscious and spending less, home improvement stores may have to be careful not to turn customers away.
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