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Lowe's and Home Depot Earnings: Which Has a Near Term Edge?
Key Takeaways
LOW and HD help headline a flurry of upcoming retail earnings.
Both companies have faced pressure stemming from a slowdown in home improvement post-pandemic.
LOW's revisions have been much more negative relative to HD.
The 2026 Q2 earnings season is slowly winding down, though there still remains a solid chunk of notable companies slated to report, including two peers with many similarities, namely Home Depot (HD - Free Report) and Lowe’s (LOW - Free Report) .
Both companies are navigating the same challenging backdrop, specifically slow housing turnover, affordability pressures, and cautious spending on large remodeling projects, all of which have lingered in the post-pandemic era.
There has been a big performance disparity between the duo in 2026, with LOW shares facing much more pressure relative to HD.
Image Source: Zacks Investment Research
Home Depot Estimates and Recent Results
Concerning headline figures in its latest release, Home Depot’s sales increased 4.8% to $41.8 billion, with adjusted EPS declining roughly 3.7% to $3.43. Notably, comparable sales rose 0.6% year-over-year, while its comparable average ticket rose 2.2% from the same period last year, which helped offset a 1.3% YoY decline in transactions.
Both EPS and sales revisions have been dominantly stable for HD over recent months, with the company currently expected to see roughly 5% sales growth on 0.6% higher earnings YoY.
Image Source: Zacks Investment Research
Lowe’s Estimates and Recent Results
LOW’s sales increased 10.3% to $23.1 billion throughout its latest period, aided in a big way by acquisitions, while adjusted EPS increased 3.8% YoY to $3.03. Comparable sales also rose 0.6%, the comparable average ticket grew 1.5% YoY, and transactions declined 0.9%. Its online sales grew by a strong 15.5% year-over-year, reflecting a standout highlight in the release.
Revisions for LOW have been more negative than for HD, with EPS and sales revisions down 2.1% and 0.6%, respectively, in recent months. Sales are forecasted to grow 9% year-over-year, whereas earnings are expected to see a 2.5% decline from the same period last year.
The weaker revisions picture here relative to HD is important to note from a near-term momentum standpoint, with LOW also carrying an unfavorable Zacks Rank #4 (Sell) at the present.
Image Source: Zacks Investment Research
The Quick Valuation Picture
HD shares trade at a significantly higher premium relative to LOW, trading at a 21.7X forward 12-month multiple compared to LOW's 16.9X. That said, both are currently trading a fair amount below their respective five-year medians, with HD historically trading at a higher price overall.
Image Source: Zacks Investment Research
Putting Everything Together
Both companies have faced a challenging operating environment in the post-pandemic era due to a tighter affordability picture that is impacting the broader housing market, which has similarly led to a decrease in big-ticket items commonly used in remodeling projects.
Both releases will help provide a stronger pulse on the state of the consumer in that regard, but more stable EPS and sales revisions heading into the releases favor Home Depot (HD - Free Report) from a near-term momentum standpoint, with it also carrying a more favorable Zacks Rank #3 (Hold) relative to a Zacks Rank #4 (Sell) for Lowe’s (LOW - Free Report) .
View the Zacks #1 Rank List
Image: Bigstock
Lowe's and Home Depot Earnings: Which Has a Near Term Edge?
Key Takeaways
The 2026 Q2 earnings season is slowly winding down, though there still remains a solid chunk of notable companies slated to report, including two peers with many similarities, namely Home Depot (HD - Free Report) and Lowe’s (LOW - Free Report) .
Both companies are navigating the same challenging backdrop, specifically slow housing turnover, affordability pressures, and cautious spending on large remodeling projects, all of which have lingered in the post-pandemic era.
There has been a big performance disparity between the duo in 2026, with LOW shares facing much more pressure relative to HD.
Image Source: Zacks Investment Research
Home Depot Estimates and Recent Results
Concerning headline figures in its latest release, Home Depot’s sales increased 4.8% to $41.8 billion, with adjusted EPS declining roughly 3.7% to $3.43. Notably, comparable sales rose 0.6% year-over-year, while its comparable average ticket rose 2.2% from the same period last year, which helped offset a 1.3% YoY decline in transactions.
Both EPS and sales revisions have been dominantly stable for HD over recent months, with the company currently expected to see roughly 5% sales growth on 0.6% higher earnings YoY.
Image Source: Zacks Investment Research
Lowe’s Estimates and Recent Results
LOW’s sales increased 10.3% to $23.1 billion throughout its latest period, aided in a big way by acquisitions, while adjusted EPS increased 3.8% YoY to $3.03. Comparable sales also rose 0.6%, the comparable average ticket grew 1.5% YoY, and transactions declined 0.9%. Its online sales grew by a strong 15.5% year-over-year, reflecting a standout highlight in the release.
Revisions for LOW have been more negative than for HD, with EPS and sales revisions down 2.1% and 0.6%, respectively, in recent months. Sales are forecasted to grow 9% year-over-year, whereas earnings are expected to see a 2.5% decline from the same period last year.
The weaker revisions picture here relative to HD is important to note from a near-term momentum standpoint, with LOW also carrying an unfavorable Zacks Rank #4 (Sell) at the present.
Image Source: Zacks Investment Research
The Quick Valuation Picture
HD shares trade at a significantly higher premium relative to LOW, trading at a 21.7X forward 12-month multiple compared to LOW's 16.9X. That said, both are currently trading a fair amount below their respective five-year medians, with HD historically trading at a higher price overall.
Image Source: Zacks Investment Research
Putting Everything Together
Both companies have faced a challenging operating environment in the post-pandemic era due to a tighter affordability picture that is impacting the broader housing market, which has similarly led to a decrease in big-ticket items commonly used in remodeling projects.
Both releases will help provide a stronger pulse on the state of the consumer in that regard, but more stable EPS and sales revisions heading into the releases favor Home Depot (HD - Free Report) from a near-term momentum standpoint, with it also carrying a more favorable Zacks Rank #3 (Hold) relative to a Zacks Rank #4 (Sell) for Lowe’s (LOW - Free Report) .