Lowe's produced surprisingly good Q1 results with comp sales growth finally topping rival Home Depot.
The stock valuation remains stretched as the home improvement retailer spends less on capital returns and the stock hits new highs.
The recommendation is to ride the stock higher, but investors need to soon lock in gains.
My investment theme with Lowe's (NYSE:LOW) for several months now was that the valuation was stretched too far. The home improvement retailer proved me wrong with the Q1 results and the stock surged to new highs.