Looking for a “new” way to play retail? It’s not enough to just look at the best-performing part of the industry, that’s why equities analyst Marshall Hargrave dug deep to find’s dig deeper into what might be the most underrated retail play around.

The major retailers like Macy’s (NYSE: M) and Nordstrom (NYSE: JWN) have been blaming poor sales on the warm weather and a shift in consumer shopping away from the mall setting.

One of the only groups of retailers that are not suffering this Holiday season is the home improvement retailers. Both the major retailers in this space, Home Depot (NYSE: HD) and Lowe’s (NYSE: LOW), managed to beat Wall Street expectations last quarter.

Both are benefiting from Baby Boomers renovating their homes and a resurgence in the housing market. As well, housing starts and applications for building permits are growing strongly.

However, Home Depot is winning when it comes to capturing more market share and boasting higher profitability. Last quarter, Home Depot’s same-store sales (SSS) grew 7.3% in the United States while Lowe’s posted a 5% growth. This is the widest spread in SSS that we’ve seen in over 18 months.

But what about the millennials? Home Depot has a plan for tapping into this large market too. This includes not only becoming more online friendly but also focusing on the professional market — the guys that millennials might hire to do their work for them.

And, the focus on professionals is paying off. There was an 8% jump in transactions totaling $900 or more at Home Depot last quarter.

But, for a moment, let’s consider that the home improvement retailers might be looking a bitrich. Has all the upside already been squeezed out of the two major home improvement retailers?

Lowe’s and Home Depot are trading at all-time highs, with stock price growth that’s more than triple the S&P 500 over the last half decade. Their price-to-earnings ratios are the highest we’ve seen in over a decade. With that, there could be an even better play on retail.