Lowe's and Home Depot Earnings: Which Has a Near Term Edge?

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 and Lowe’s LOW.

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.

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.

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.

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.

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 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.  

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This article originally published on Zacks Investment Research (zacks.com).

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