Lowe's Companies, Inc., together with its subsidiaries, operates as a home improvement retailer in the United States. The company offers a line of products for construction, maintenance, repair, remodeling, and decorating. It also provides home improvement products, such as appliances, seasonal and outdoor living, lawn and garden, lumber, kitchens and bath, tools, paint, millwork, hardware, flooring, rough plumbing, building materials, décor, and electrical. In addition, the company offers installation services through independent contractors in various product categories; and extended protection plans and repair services. It sells its national brand-name merchandise and private brand products to professional customers, homeowners, renters, businesses, and government. The company also sells its products through Lowes.com website; and through mobile applications. Lowe's Companies, Inc. was founded in 1921 and is based in Mooresville, North Carolina.

Lowe's Companies, Inc.

Key Points
Wall Street says the information technology and consumer discretionary sectors will beat the S&P 500 in the next year.
The Vanguard Information Technology ETF provides heavy exposure to Nvidia, Apple, and Microsoft.
The Vanguard Consumer Discretionary provides heavy exposure to Amazon, Tesla, and Home Depot.
The median forecast among Wall Street analysts says the benchmark S&P 500 (SNPINDEX: ^GSPC) will advance 18% to 8,200 in the next year, according to FactSet Research.
As of February 10, only two stock market sectors are projected to outperform the S&P 500 during that period. The information technology and consumer discretionary sectors will add 33% and 22%, respectively, according to the median target prices set by analysts.
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Investors can get exposure to those sectors with the Vanguard Information Technology ETF (NYSEMKT: VGT) and the Vanguard Consumer Discretionary ETF (NYSEMKT: VCR). Here are the important details.
Vanguard Information Technology ETF: 33% upside implied by the median target price
The Vanguard Information Technology ETF tracks 320 stocks in the information technology sector, which includes three major segments: software and cloud services, technology hardware and equipment, and semiconductors and semiconductor manufacturing equipment. The top 10 holdings in the index fund are listed by weight below:
Nvidia: 17.4%
Apple: 14.9%
Microsoft: 12.1%
Broadcom: 4.4%
Palantir Technologies: 1.9%
Advanced Micro Devices: 1.7%
Oracle: 1.6%
Micron Technology: 1.6%
Cisco Systems: 1.5%
IBM: 1.3%
What could go wrong? Technology stocks often perform worse than the S&P 500 during drawdowns. The Vanguard Information Technology ETF underperformed the S&P 500 by 8 percentage points during the last market correction, and it underperformed by 9 percentage points during the last bear market.
Nevertheless, information technology was the best-performing market sector during the last decade. The Vanguard Information Technology ETF achieved a total return of 776% during that period, equivalent to 24% annually.
Here's the big picture: This Vanguard index fund has a relatively cheap expense ratio of 0.09%, and it's likely to perform well as artificial intelligence spending increases in the years ahead. Also, the current valuation of 39 times earnings is reasonable when Wall Street analysts expect technology companies in aggregate to report earnings growth of 24% annually through 2027.
Vanguard Consumer Discretionary ETF: 22% upside implied by the median target price
The Vanguard Consumer Discretionary ETF tracks 288 stocks in the consumer discretionary sector, which includes two segments: manufacturing and services. The manufacturing segment covers apparel, automotive, household, leisure, and textile products; the services segment covers hotels, restaurants, and retailers. The top 10 holdings in the index fund are listed by weight below:
Amazon: 21.1%
Tesla: 18.1%
Home Depot: 4.6%
McDonald's 3.2%
Booking Holdings: 2.6%
TJX Companies: 2.5%
Lowe's Companies: 1.8%
Starbucks: 1.4%
MercadoLibre: 1.3%
DoorDash: 1.3%
What could go wrong? Consumer discretionary stocks often perform worse than the S&P 500 during market drawdowns. The Vanguard Consumer Discretionary ETF underperformed the S&P 500 by 5 percentage points during the last market correction, and it underperformed by 7 percentage points during the last bear market.
Nevertheless, consumer discretionary was the fourth-best performing market sector during the last decade. The Vanguard Consumer Discretionary ETF achieved a total return of 311% during that period, equivalent to 15% annually.
Here's the big picture: This Vanguard index fund has a relatively cheap expensive ratio of 0.09%, and it's likely to perform well so long as the economy remains healthy. Also, the current valuation of 29 times earnings is tolerable when Wall Street anticipates consumer discretionary companies in aggregate will report earnings growth of 12% annually through 2027.
Investors need to manage concentration risk
The index funds discussed are very concentrated. Three stocks in the Vanguard Information Technology ETF (Nvidia, Apple, and Microsoft) account for 44% of its performance. Similarly, three stocks in the Vanguard Consumer Discretionary ETF (Amazon, Tesla, and Home Depot) account for 43% of its performance.
Investors with large positions in either fund should consider diversifying their portfolios. One strategy would be to purchase index funds that track the financials, industrials, and/or communications services sectors, all of which performed well during the last decade. A more defensive strategy would be to buy index funds that track the consumer staples, healthcare, and/or utilities sectors, which tend to outperform during economic slowdowns.
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Trevor Jennewine has positions in Amazon, MercadoLibre, Nvidia, and Tesla. The Motley Fool has positions in and recommends Advanced Micro Devices, Amazon, Apple, Booking Holdings, Cisco Systems, DoorDash, FactSet Research Systems, Home Depot, International Business Machines, MercadoLibre, Micron Technology, Microsoft, Nvidia, Oracle, Starbucks, TJX Companies, and Tesla. The Motley Fool recommends Broadcom and Lowe's Companies. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Buy 2 Vanguard Index Funds to Beat the S&P 500 in the Next Year, According to Wall Street

Looking at options trading activity among components of the Russell 3000 index, there is noteworthy activity today in Lowe's Companies Inc (Symbol: LOW), where a total volume of 13,593 contracts has been traded thus far today, a contract volume which is representative of approximately 1.4 million underlying shares (given that every 1 contract represents 100 underlying shares). That number works out to 46.6% of LOW's average daily trading volume over the past month, of 2.9 million shares. Especially high volume was seen for the $300 strike call option expiring March 20, 2026, with 3,399 contracts trading so far today, representing approximately 339,900 underlying shares of LOW. Below is a chart showing LOW's trailing twelve month trading history, with the $300 strike highlighted in orange:
Advance Auto Parts Inc (Symbol: AAP) options are showing a volume of 8,920 contracts thus far today. That number of contracts represents approximately 892,000 underlying shares, working out to a sizeable 45.1% of AAP's average daily trading volume over the past month, of 2.0 million shares. Particularly high volume was seen for the $55 strike call option expiring February 13, 2026, with 2,756 contracts trading so far today, representing approximately 275,600 underlying shares of AAP. Below is a chart showing AAP's trailing twelve month trading history, with the $55 strike highlighted in orange:
And CDW Corp (Symbol: CDW) saw options trading volume of 7,793 contracts, representing approximately 779,300 underlying shares or approximately 44.4% of CDW's average daily trading volume over the past month, of 1.8 million shares. Especially high volume was seen for the $150 strike call option expiring March 20, 2026, with 3,713 contracts trading so far today, representing approximately 371,300 underlying shares of CDW. Below is a chart showing CDW's trailing twelve month trading history, with the $150 strike highlighted in orange:
For the various different available expirations for LOW options, AAP options, or CDW options, visit StockOptionsChannel.com.
Also see:
DMAC shares outstanding history
SFG Options Chain
UAL Average Annual Return
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Notable Tuesday Option Activity: LOW, AAP, CDW

In the latest trading session, Lowe's (LOW) closed at $246.89, marking a +0.13% move from the previous day. The stock's change was less than the S&P 500's daily gain of 0.16%. At the same time, the Dow added 0.25%, and the tech-heavy Nasdaq lost 0.06%.
Coming into today, shares of the home improvement retailer had lost 7.84% in the past month. In that same time, the Retail-Wholesale sector lost 4.61%, while the S&P 500 lost 2.7%.
Analysts and investors alike will be keeping a close eye on the performance of Lowe's in its upcoming earnings disclosure. The company's upcoming EPS is projected at $1.81, signifying a 2.26% increase compared to the same quarter of the previous year. At the same time, our most recent consensus estimate is projecting a revenue of $18.22 billion, reflecting a 2.07% fall from the equivalent quarter last year.
Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $11.88 per share and revenue of $83.32 billion. These totals would mark changes of -10% and -3.54%, respectively, from last year.
Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Lowe's. These revisions help to show the ever-changing nature of near-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the company's business performance and profit potential.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.
The Zacks Rank system, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. Over the past month, there's been a 0.09% fall in the Zacks Consensus EPS estimate. At present, Lowe's boasts a Zacks Rank of #3 (Hold).
In the context of valuation, Lowe's is at present trading with a Forward P/E ratio of 20.79. This indicates a premium in contrast to its industry's Forward P/E of 20.01.
We can also see that LOW currently has a PEG ratio of 2.07. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. The Retail - Home Furnishings was holding an average PEG ratio of 2.07 at yesterday's closing price.
The Retail - Home Furnishings industry is part of the Retail-Wholesale sector. This industry, currently bearing a Zacks Industry Rank of 149, finds itself in the bottom 41% echelons of all 250+ industries.
The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding trading sessions.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Lowe's (LOW) Gains But Lags Market: What You Should Know

Investors in Lowe's Companies Inc (Symbol: LOW) saw new options begin trading today, for the March 27th expiration. At Stock Options Channel, our YieldBoost formula has looked up and down the LOW options chain for the new March 27th contracts and identified one put and one call contract of particular interest.
The put contract at the $270.00 strike price has a current bid of $7.70. If an investor was to sell-to-open that put contract, they are committing to purchase the stock at $270.00, but will also collect the premium, putting the cost basis of the shares at $262.30 (before broker commissions). To an investor already interested in purchasing shares of LOW, that could represent an attractive alternative to paying $274.83/share today.
Because the $270.00 strike represents an approximate 2% discount to the current trading price of the stock (in other words it is out-of-the-money by that percentage), there is also the possibility that the put contract would expire worthless. The current analytical data (including greeks and implied greeks) suggest the current odds of that happening are 59%. Stock Options Channel will track those odds over time to see how they change, publishing a chart of those numbers on our website under the contract detail page for this contract. Should the contract expire worthless, the premium would represent a 2.85% return on the cash commitment, or 20.84% annualized — at Stock Options Channel we call this the YieldBoost.
Below is a chart showing the trailing twelve month trading history for Lowe's Companies Inc, and highlighting in green where the $270.00 strike is located relative to that history:
Turning to the calls side of the option chain, the call contract at the $280.00 strike price has a current bid of $7.90. If an investor was to purchase shares of LOW stock at the current price level of $274.83/share, and then sell-to-open that call contract as a "covered call," they are committing to sell the stock at $280.00. Considering the call seller will also collect the premium, that would drive a total return (excluding dividends, if any) of 4.76% if the stock gets called away at the March 27th expiration (before broker commissions). Of course, a lot of upside could potentially be left on the table if LOW shares really soar, which is why looking at the trailing twelve month trading history for Lowe's Companies Inc, as well as studying the business fundamentals becomes important. Below is a chart showing LOW's trailing twelve month trading history, with the $280.00 strike highlighted in red:
Considering the fact that the $280.00 strike represents an approximate 2% premium to the current trading price of the stock (in other words it is out-of-the-money by that percentage), there is also the possibility that the covered call contract would expire worthless, in which case the investor would keep both their shares of stock and the premium collected. The current analytical data (including greeks and implied greeks) suggest the current odds of that happening are 54%. On our website under the contract detail page for this contract, Stock Options Channel will track those odds over time to see how they change and publish a chart of those numbers (the trading history of the option contract will also be charted). Should the covered call contract expire worthless, the premium would represent a 2.87% boost of extra return to the investor, or 21.00% annualized, which we refer to as the YieldBoost.
The implied volatility in the put contract example, as well as the call contract example, are both approximately 29%.
Meanwhile, we calculate the actual trailing twelve month volatility (considering the last 251 trading day closing values as well as today's price of $274.83) to be 25%. For more put and call options contract ideas worth looking at, visit StockOptionsChannel.com.
Also see:
Funds Holding THRM
ESTR shares outstanding history
KNTK Videos
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

March 27th Options Now Available For Lowe's Companies

For Immediate Release
Chicago, IL – February 5, 2026 – Zacks Equity Research shares Callaway Golf Co. CALY as the Bull of the Day and Albany International Corp. AIN as the Bear of the Day. In addition, Zacks Equity Research provides analysis on The Home Depot, Inc. HD, Floor & Decor Holdings, Inc. FND and Lowe's Companies, Inc. LOW.
Here is a synopsis of all five stocks:
Callaway Golf Co., a Zacks Rank #1 (Strong Buy), designs, manufactures, and sells golf equipment, apparel, and other related accessories in the US and internationally. Callaway has been the #1 equipment club sales company in recent years in the US and is the #2 ball brand behind Titleist.
The stock recently broke out to a 52-week high on increasing volume. Shares continue to display relative strength as buying pressure accumulates in this market leader.
Callaway is part of the Zacks Leisure and Recreation Products industry group, which currently ranks in the top 36% out of approximately 250 Zacks Ranked Industries. Because it is ranked in the top half of all Zacks Ranked Industries, we expect this group to outperform the market over the next 3 to 6 months.
Take note of the favorable characteristics for this group below. Stocks in this industry are relatively undervalued based on traditional valuation metrics. They are also projected to experience above-average earnings growth, which signifies a powerful combination that should lead to higher prices in the future.
Historical research studies suggest that approximately half of a stock's price appreciation is due to its industry grouping. In fact, the top 50% of Zacks Ranked Industries outperforms the bottom 50% by a factor of more than 2 to 1.
It's no secret that investing in stocks that are part of leading industry groups can give us a leg up relative to the market. By focusing on leading stocks within the top 50% of Zacks Ranked Industries, we can dramatically improve our stock-picking success.
Company Description
Back in 2006, Callaway recognized Topgolf's potential early and invested in the company that was transforming driving ranges into competitive gameplay destinations. Callaway eventually controlled as much as 14% of Topgolf before the two entities completed a full merger back in October 2020. The Topgolf brand boasts nearly 100 locations across the US along with 4 international venues.
Just recently, Callaway sold a majority stake of 60% in its Topgolf and Toptracer businesses to private equity funds in a deal valued at $1.1 billion. Callaway received about $800 million in cash proceeds after adjustments and transaction expenses, and as part of the deal, the company repaid $1 billion in outstanding debt and also authorized the repurchase of up to $200 million in common stock.
The deal reduced leverage for Callaway while still allowing potential future value creation through its retained stake in Topgolf. This transformation is enabling Callaway to reaffirm its position as a leading pure-play golf business. Callaway plans to put part of the proceeds back into its equipment and apparel businesses.
Earlier this month, Callaway introduced its new set of Quantum drivers, fairway woods, irons and hybrids, engineered with groundbreaking technologies. Its Odyssey putters and Travis Mathew apparel are also under the Callaway brand. The company sells its products through golf retailers, sporting goods retailers, department stores, as well as directly to consumers through its retail stores and websites.
Earnings Trends and Future Estimates
Callaway has shown a consistent ability to deliver positive earnings surprises; the leading golf company surpassed the earnings mark in each of the past 11 quarters. Callaway delivered a trailing four-quarter average surprise of nearly 300%, reflecting strong execution.
This track record aligns perfectly with the power of the Zacks Rank system, which prioritizes stocks showing upward earnings revisions.
The California-based company has been the beneficiary of improving earnings estimate revisions as of late. Looking into fiscal 2026, analysts have raised their annual EPS estimates by 250% in the past 60 days. The Zacks Consensus Estimate now stands at 27 cents per share, reflecting nearly 260% growth relative to the prior year.
Let's Get Technical
Callaway's stock performance is reflective of the fundamental story, as shares have surged to a series of 52-week highs. The stock went from lows of around $5 last year to over $15 per share here in January 2026. It's quite rare to have a penny stock begin to reach these levels and signals that higher prices are likely ahead.
Only stocks that are in extremely powerful uptrends are able to make this type of price move and widely outperform the market. This is the kind of stock we want to include in our portfolio – one that is trending well and receiving positive earnings estimate revisions.
Notice how shares remain above upward-sloping 50-day (blue line) and 200-day (red line) moving averages. The stock has advanced more than 70% over the past six months, and momentum appears to be continuing this year. With both strong fundamentals and technicals, CALY stock is poised to continue its outperformance.
Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. As we know, Callaway has recently witnessed positive revisions. As long as this trend remains intact (and CALY continues to deliver earnings beats), the stock will likely continue its bullish run throughout this year.
Bottom Line
Backed by a leading industry group and robust history of earnings beats, it's not difficult to see why this company is a compelling investment. Currently, CALY carries a Zacks Rank #1 (Strong Buy), driven by favorable estimate momentum.
Solid institutional buying should continue to provide a tailwind for the stock price. Robust fundamentals combined with a strong technical trend certainly justify adding shares to the mix. If you haven't already done so, be sure to put Callaway on your shortlist.
Albany International Corp. engages in the machine clothing and engineered composites businesses. A global textiles and materials processing company, Albany specializes in machine clothing for paper mills and engineered structures for aerospace and other industries.
Key challenges remain for Albany in 2026. Deteriorating returns on capital make it clear that management's attempts at new investments are destroying value. Sales growth has been anemic in recent years and well below other industrial companies. A difficult macroeconomic environment and lingering inflationary conditions do not bode well for the company's outlook.
As we'll see, revenues are expected to decline in the current fiscal year. With the stock trading at over 19 times forward earnings, the lack of growth potential simply doesn't warrant a bullish stance.
The Zacks Rundown
A Zacks Rank #5 (Strong Sell) stock, Albany International is a component of the Zacks Textile – Products industry group, which currently ranks in the bottom 4% out of approximately 250 Zacks Ranked Industries. As such, we expect this industry group as a whole to underperform the market over the next 3 to 6 months, just as it has throughout the past year.
Stocks in the bottom tiers of industries can often be intriguing short candidates. While individual stocks have the ability to outperform even when they're part of a lagging industry, the inclusion in a weaker group serves as a headwind for any potential rallies and the journey forward is that much more difficult.
Albany's stock widely underperformed the market over the past year. A recent uptick into February presents a compelling short opportunity.
History of Earnings Misses & Deteriorating Outlook
Albany missed the earnings mark in two of the past four quarters. The company delivered a trailing four-quarter average earnings miss of -1.35%. Falling short of earnings estimates is a recipe for underperformance, and AIN is no exception.
The textiles company has been on the receiving end of negative earnings estimate revisions as of late. Looking into fiscal 2026, analysts cut estimates by -1.0% in the past 60 days. The Zacks Consensus EPS Estimate is now $2.96 per share. Revenues are anticipated to decline -7.5% this year to $1.05 billion.
Falling earnings estimates are a huge red flag and need to be respected. Negative growth year-over-year is the type of trend that bears like to see.
Technical Outlook
As illustrated below, AIN stock is in a sustained downtrend. Notice how the stock has been widely underperforming the major indices. Also note that shares are trading below a downward-sloping 200-day (red line) moving average – another good sign for the bears.
AIN stock has experienced what is known as a "death cross," whereby the stock's 50-day moving average (blue line) crosses below its 200-day moving average. Shares would have to make an outsized move to the upside and show increasing earnings estimate revisions to warrant taking any long positions. The stock has fallen nearly 30% in the past year alone.
Final Thoughts
A deteriorating fundamental and technical backdrop show that this stock is not set to make its way to new highs anytime soon. The fact that AIN stock is included in one of the worst-performing industry groups adds yet another headwind to a long list of concerns.
A shaky earnings history and falling future earnings estimates will likely serve as a ceiling to any potential rallies, nurturing the stock's downtrend.
Potential investors may want to give this stock the cold shoulder, or perhaps include it as part of a short or hedge strategy. Bulls will want to steer clear of AIN until the situation shows major signs of improvement.
Additional content:
Here's Why Home Depot's Pro Strategy Is a Long-Term Growth Lever
As the home improvement market faces headwinds from consumer uncertainty, The Home Depot, Inc. continues to deepen its Pro strategy to expand its addressable market and capture a larger share of wallet from professional customers. By focusing on these high-value customers who manage multifaceted projects, Home Depot aims to differentiate itself from traditional retail competitors.
The company is building a Pro ecosystem that combines stores, supply-chain assets, digital tools and dedicated sales teams. New offerings, such as a project planning tool and an artificial intelligence-driven blueprint takeoff application, are designed to convert complex manual processes into efficient digital workflows. These tools allow Pros to manage projects, estimate materials and complete purchases within a single platform, positioning Home Depot as a one-stop solution.
The Pro strategy is also supported by the integration of SRS and GMS, which extends reach into roofing, drywall and other specialty categories. Management noted that cross-selling among Home Depot, SRS and GMS is already underway through coordinated sales efforts, enabling account handoffs and larger project wins.
Management views the Pro market as a massive opportunity for share gains, particularly as Home Depot refines its ability to handle large-order deliveries and job-site services. This strategic focus positions the company to benefit as housing turnover and broader construction activity improve.
What the Latest Metrics Say About Home Depot
Home Depot, which competes with Floor & Decor Holdings, Inc. and Lowe's Companies, Inc., has seen its shares fall 7.9% in the past year compared with the industry's decline of 14.1%. While shares of Floor & Decor Holdings have plunged 35.2%, Lowe's has risen 6.3% in the same period.
From a valuation standpoint, Home Depot trades at a forward price-to-earnings ratio of 26.27, higher than the industry's 20.95. HD carries a Value Score of D. Home Depot is trading at a discount to Floor & Decor Holdings (with a forward 12-month P/E ratio of 30.48) but at a premium to Lowe's (22.41).
The Zacks Consensus Estimate for Home Depot's current financial-year sales implies year-over-year growth of 3.3%, while the same for earnings per share suggests a decline of 4.9%. For the next fiscal year, the consensus estimate indicates a 4.3% rise in sales and 4.4% growth in earnings.
Home Depot currently carries a Zacks Rank #4 (Sell).
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Past performance is no guarantee of future results. Inherent in any investment is the potential for loss.This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performancefor information about the performance numbers displayed in this press release.
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Callaway Golf and Albany International have been highlighted as Zacks Bull and Bear of the Day

As the home improvement market faces headwinds from consumer uncertainty, The Home Depot, Inc. HD continues to deepen its Pro strategy to expand its addressable market and capture a larger share of wallet from professional customers. By focusing on these high-value customers who manage multifaceted projects, Home Depot aims to differentiate itself from traditional retail competitors.
The company is building a Pro ecosystem that combines stores, supply-chain assets, digital tools and dedicated sales teams. New offerings, such as a project planning tool and an artificial intelligence-driven blueprint takeoff application, are designed to convert complex manual processes into efficient digital workflows. These tools allow Pros to manage projects, estimate materials and complete purchases within a single platform, positioning Home Depot as a one-stop solution.
The Pro strategy is also supported by the integration of SRS and GMS, which extends reach into roofing, drywall and other specialty categories. Management noted that cross-selling among Home Depot, SRS and GMS is already underway through coordinated sales efforts, enabling account handoffs and larger project wins.
Management views the Pro market as a massive opportunity for share gains, particularly as Home Depot refines its ability to handle large-order deliveries and job-site services. This strategic focus positions the company to benefit as housing turnover and broader construction activity improve.
What the Latest Metrics Say About Home Depot
Home Depot, which competes with Floor & Decor Holdings, Inc. FND and Lowe's Companies, Inc. LOW, has seen its shares fall 7.9% in the past year compared with the industry’s decline of 14.1%. While shares of Floor & Decor Holdings have plunged 35.2%, Lowe’s has risen 6.3% in the same period.
Image Source: Zacks Investment Research
From a valuation standpoint, Home Depot trades at a forward price-to-earnings ratio of 26.27, higher than the industry’s 20.95. HD carries a Value Score of D. Home Depot is trading at a discount to Floor & Decor Holdings (with a forward 12-month P/E ratio of 30.48) but at a premium to Lowe’s (22.41).
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for Home Depot’s current financial-year sales implies year-over-year growth of 3.3%, while the same for earnings per share suggests a decline of 4.9%. For the next fiscal year, the consensus estimate indicates a 4.3% rise in sales and 4.4% growth in earnings.
Image Source: Zacks Investment Research
Home Depot currently carries a Zacks Rank #4 (Sell).
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Here's Why Home Depot's Pro Strategy Is a Long-Term Growth Lever

Investors in Lowe's Companies Inc (Symbol: LOW) saw new options begin trading today, for the March 13th expiration. At Stock Options Channel, our YieldBoost formula has looked up and down the LOW options chain for the new March 13th contracts and identified one put and one call contract of particular interest.
The put contract at the $225.00 strike price has a current bid of 50 cents. If an investor was to sell-to-open that put contract, they are committing to purchase the stock at $225.00, but will also collect the premium, putting the cost basis of the shares at $224.50 (before broker commissions). To an investor already interested in purchasing shares of LOW, that could represent an attractive alternative to paying $268.24/share today.
Because the $225.00 strike represents an approximate 16% discount to the current trading price of the stock (in other words it is out-of-the-money by that percentage), there is also the possibility that the put contract would expire worthless. The current analytical data (including greeks and implied greeks) suggest the current odds of that happening are 91%. Stock Options Channel will track those odds over time to see how they change, publishing a chart of those numbers on our website under the contract detail page for this contract. Should the contract expire worthless, the premium would represent a 0.22% return on the cash commitment, or 1.89% annualized — at Stock Options Channel we call this the YieldBoost.
Below is a chart showing the trailing twelve month trading history for Lowe's Companies Inc, and highlighting in green where the $225.00 strike is located relative to that history:
Turning to the calls side of the option chain, the call contract at the $275.00 strike price has a current bid of $7.10. If an investor was to purchase shares of LOW stock at the current price level of $268.24/share, and then sell-to-open that call contract as a "covered call," they are committing to sell the stock at $275.00. Considering the call seller will also collect the premium, that would drive a total return (excluding dividends, if any) of 5.17% if the stock gets called away at the March 13th expiration (before broker commissions). Of course, a lot of upside could potentially be left on the table if LOW shares really soar, which is why looking at the trailing twelve month trading history for Lowe's Companies Inc, as well as studying the business fundamentals becomes important. Below is a chart showing LOW's trailing twelve month trading history, with the $275.00 strike highlighted in red:
Considering the fact that the $275.00 strike represents an approximate 3% premium to the current trading price of the stock (in other words it is out-of-the-money by that percentage), there is also the possibility that the covered call contract would expire worthless, in which case the investor would keep both their shares of stock and the premium collected. The current analytical data (including greeks and implied greeks) suggest the current odds of that happening are 56%. On our website under the contract detail page for this contract, Stock Options Channel will track those odds over time to see how they change and publish a chart of those numbers (the trading history of the option contract will also be charted). Should the covered call contract expire worthless, the premium would represent a 2.65% boost of extra return to the investor, or 22.49% annualized, which we refer to as the YieldBoost.
The implied volatility in the put contract example is 41%, while the implied volatility in the call contract example is 30%.
Meanwhile, we calculate the actual trailing twelve month volatility (considering the last 251 trading day closing values as well as today's price of $268.24) to be 25%. For more put and call options contract ideas worth looking at, visit StockOptionsChannel.com.
Also see:
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Interesting LOW Put And Call Options For March 13th

Lowe's (LOW) ended the recent trading session at $269.99, demonstrating a -1.44% change from the preceding day's closing price. This change lagged the S&P 500's 0.01% loss on the day. Elsewhere, the Dow saw an upswing of 0.03%, while the tech-heavy Nasdaq appreciated by 0.17%.
Shares of the home improvement retailer have appreciated by 12.65% over the course of the past month, outperforming the Retail-Wholesale sector's gain of 4.91%, and the S&P 500's gain of 0.78%.
Investors will be eagerly watching for the performance of Lowe's in its upcoming earnings disclosure. The company's earnings report is set to be unveiled on February 25, 2026. It is anticipated that the company will report an EPS of $1.95, marking a 1.04% rise compared to the same quarter of the previous year. Our most recent consensus estimate is calling for quarterly revenue of $20.35 billion, up 9.71% from the year-ago period.
For the annual period, the Zacks Consensus Estimates anticipate earnings of $12.26 per share and a revenue of $86.06 billion, signifying shifts of +2.17% and +2.85%, respectively, from the last year.
Investors should also note any recent changes to analyst estimates for Lowe's. These revisions typically reflect the latest short-term business trends, which can change frequently. Therefore, positive revisions in estimates convey analysts' confidence in the business performance and profit potential.
Based on our research, we believe these estimate revisions are directly related to near-term stock moves. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable rating system.
The Zacks Rank system, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. Over the past month, there's been no change in the Zacks Consensus EPS estimate. At present, Lowe's boasts a Zacks Rank of #3 (Hold).
Investors should also note Lowe's's current valuation metrics, including its Forward P/E ratio of 22.35. This signifies a discount in comparison to the average Forward P/E of 23.96 for its industry.
We can also see that LOW currently has a PEG ratio of 4.54. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. As the market closed yesterday, the Retail - Home Furnishings industry was having an average PEG ratio of 2.12.
The Retail - Home Furnishings industry is part of the Retail-Wholesale sector. Currently, this industry holds a Zacks Industry Rank of 182, positioning it in the bottom 26% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Here's Why Lowe's (LOW) Fell More Than Broader Market

Looking today at week-over-week shares outstanding changes among the universe of ETFs covered at ETF Channel, one standout is the iShares U.S. Consumer Discretionary ETF (Symbol: IYC) where we have detected an approximate $89.5 million dollar outflow -- that's a 5.6% decrease week over week (from 15,050,000 to 14,200,000). Among the largest underlying components of IYC, in trading today Lowe's Companies Inc (Symbol: LOW) is down about 1.1%, O'Reilly Automotive, Inc. (Symbol: ORLY) is up about 0.1%, and Marriott International, Inc. (Symbol: MAR) is lower by about 0.7%. For a complete list of holdings, visit the IYC Holdings page » The chart below shows the one year price performance of IYC, versus its 200 day moving average:
Looking at the chart above, IYC's low point in its 52 week range is $77.66 per share, with $107.36 as the 52 week high point — that compares with a last trade of $104.98. Comparing the most recent share price to the 200 day moving average can also be a useful technical analysis technique -- learn more about the 200 day moving average ».
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Exchange traded funds (ETFs) trade just like stocks, but instead of ''shares'' investors are actually buying and selling ''units''. These ''units'' can be traded back and forth just like stocks, but can also be created or destroyed to accommodate investor demand. Each week we monitor the week-over-week change in shares outstanding data, to keep a lookout for those ETFs experiencing notable inflows (many new units created) or outflows (many old units destroyed). Creation of new units will mean the underlying holdings of the ETF need to be purchased, while destruction of units involves selling underlying holdings, so large flows can also impact the individual components held within ETFs.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

IYC, LOW, ORLY, MAR: Large Outflows Detected at ETF

The Home Depot, Inc. HD faces a challenging fiscal 2025, as the company, on its lastearnings call guided a 5% decline in adjusted earnings per share from $15.24 in fiscal 2024. This downward revision from the previously projected 2% drop reflects ongoing housing market pressures, consumer uncertainty and a notable absence of storm activity that typically drives repair demand. Despite these headwinds and the anticipated earnings decline, third-quarter results indicate that the home improvement retailer is strengthening its position.
Management remains focused on strategic investments and market share gains. The company completed the acquisition of GMS to enhance its specialized Pro offerings, further solidifying its ecosystem for complex projects. While total sales growth for fiscal 2025 is expected to reach 3%, much of this increase is driven by the GMS integration rather than organic volume. For fiscal 2025, GMS is expected to contribute about $2 billion in incremental sales to Home Depot's top line.
Operationally, the company defended its third-quarter gross margin, which remained flat year over year at 33.4%. Despite consumer hesitation about large discretionary renovations, Home Depot saw growth in big-ticket transactions above $1,000. This ability to maintain pricing power and attract high-value transactions supports the view that the company is effectively gaining market share.
Digital platforms are becoming a key catalyst for Home Depot as it navigates a challenging retail environment. In the third quarter of fiscal 2025, online comparable sales rose approximately 11% year over year, following a 12% increase in the preceding quarter. This performance outpaced the company’s overall comparable sales growth of 0.2%.
Through its digital transformation, Home Depot is also targeting the high-value Pro segment. New offerings, such as a project planning tool and an artificial intelligence-driven blueprint takeoff application, are designed to convert complex manual processes into efficient digital workflows. Home Depot is clearly positioning itself to emerge stronger once the housing market stabilizes despite the earnings decline expected in fiscal 2025.
What the Latest Metrics Say About Home Depot
Home Depot, which competes with Floor & Decor Holdings, Inc. FND and Lowe's Companies, Inc. LOW, has seen its shares fall 7.7% in the past year compared with the industry’s decline of 13.8%. While shares of Floor & Decor Holdings have plunged 31.6%, Lowe’s has risen 5.1% in the said period.
Image Source: Zacks Investment Research
From a valuation standpoint, Home Depot trades at a forward price-to-earnings ratio of 25.64, higher than the industry’s 23.13. HD carries a Value Score of D. Home Depot is trading at a discount to Floor & Decor Holdings (with a forward 12-month P/E ratio of 32.45) but at a premium to Lowe’s (21.39).
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for Home Depot’s current financial-year sales implies year-over-year growth of 3.2%, while the same for earnings per share suggests a decline of 4.9%. For the next fiscal year, the consensus estimate indicates a 4.4% rise in sales and 4% growth in earnings.
Image Source: Zacks Investment Research
Home Depot currently carries a Zacks Rank #4 (Sell).
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Lowe's Companies, Inc.

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