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Lowe's (LOW) and Home Depot (HD) have received Buy ratings from Mizuho analysts, as demand in the housing market starts to recover. Mizuho Americas Director and Senior Analyst David Bellinger joins Yahoo Finance Live to discuss this move, expressing his expectation for "a renovation renaissance" in the coming years.

Bellinger highlights Lowe's as the "top pick" due to its strong positioning in the do-it-yourself (DIY) segment. Bellinger explains that when homeowners first purchase a house, they are often engaged in a flurry of home improvement projects for the next two to three years. With Lowe's outperforming in key DIY categories such as paint, outdoor, and patio, he states that the company has "a leg-up" in capturing this demand.

While acknowledging the recent "freeze on housing activity," Bellinger notes that "there is a lot of demand out there" from potential homebuyers seeking to enter the market. He also emphasizes that long-term home improvement dynamics remain robust, with nearly 50% of the housing stock in the United States being "aged 40 or older." Bellinger describes these older homes as "leaky buckets," foreshadowing the need for ongoing maintenance— furthering his bullish outlook on home improvement stocks.

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Editor's note: This article was written by Angel Smith