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.

The Home Depot, Inc. HD has broadened its professional market reach through the acquisition of GMS by its SRS Distribution business. GMS is a prominent distributor of specialty building products, including drywall, ceilings and steel framing, which are essential for complex remodeling and new construction. This integration enables Home Depot to leverage GMS' specialized product categories and customer relationships, enhancing its multi-category distribution model.
This pairing is significant because it brings differentiated customer relationships and product categories that are highly complementary to the existing SRS business. By combining GMS' specialty distribution with Home Depot's retail reach and SRS' roofing strength, the company is positioning itself as a one-stop shop for complex professional projects. The acquisition has contributed roughly $900 million in sales during just eight weeks of the third quarter.
For fiscal 2025, GMS is expected to contribute about $2 billion in incremental sales to Home Depot's top line. This expansion into technical specialty trade categories effectively broadens the company's total addressable market within the professional segment. By focusing on specialized building products, the company can better serve professional contractors working on intricate builds that require reliable material delivery and advanced project planning tools.
With more than 1,200 SRS locations in the network, the addition of GMS expands Home Depot’s participation in specialty building products distribution and increases its ability to serve professional customers through a wider set of trade categories tied to construction-related spending.
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 10.1% in the past year compared with the industry’s decline of 15.7%. While shares of Floor & Decor Holdings have declined 37.2%, Lowe’s has fallen 0.9% in the said period.
Image Source: Zacks Investment Research
From a valuation standpoint, Home Depot trades at a forward price-to-earnings ratio of 23.24, higher than the industry’s 21.14. HD carries a Value Score of F. Home Depot is trading at a discount to Floor & Decor Holdings (with a forward 12-month P/E ratio of 29.43) but at a premium to Lowe’s (18.89).
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 4.8%.
Image Source: Zacks Investment Research
Home Depot currently carries a Zacks Rank #5 (Strong Sell).
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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Home Depot Expands Pro Market With GMS and SRS Pairing

Looking today at week-over-week shares outstanding changes among the universe of ETFs covered at ETF Channel, one standout is the iShares Core S&P Total U.S. Stock Market ETF (Symbol: ITOT) where we have detected an approximate $420.5 million dollar inflow -- that's a 0.5% increase week over week in outstanding units (from 535,300,000 to 538,100,000). Among the largest underlying components of ITOT, in trading today NextEra Energy Inc (Symbol: NEE) is up about 0.1%, Amphenol Corp. (Symbol: APH) is up about 0.1%, and Lowe's Companies Inc (Symbol: LOW) is higher by about 0.2%. For a complete list of holdings, visit the ITOT Holdings page » The chart below shows the one year price performance of ITOT, versus its 200 day moving average:
Looking at the chart above, ITOT's low point in its 52 week range is $105 per share, with $150.84 as the 52 week high point — that compares with a last trade of $150.42. 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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Noteworthy ETF Inflows: ITOT, NEE, APH, LOW

Looking at the universe of stocks we cover at Dividend Channel, in trading on Thursday, shares of Lowe's Companies Inc (Symbol: LOW) were yielding above the 2% mark based on its quarterly dividend (annualized to $4.2), with the stock changing hands as low as $205.37 on the day. Dividends are particularly important for investors to consider, because historically speaking dividends have provided a considerable share of the stock market's total return. To illustrate, suppose for example you purchased shares of the S&P 500 ETF (SPY) back on 12/31/1999 — you would have paid $146.88 per share. Fast forward to 12/31/2012 and each share was worth $142.41 on that date, a decrease of $4.67/share over all those years. But now consider that you collected a whopping $25.98 per share in dividends over the same period, for a positive total return of 23.36%. Even with dividends reinvested, that only amounts to an average annual total return of about 1.6%; so by comparison collecting a yield above 2% would appear considerably attractive if that yield is sustainable. Lowe's Companies Inc (Symbol: LOW) is an S&P 500 company, giving it special status as one of the large-cap companies making up the S&P 500 Index.
In general, dividend amounts are not always predictable and tend to follow the ups and downs of profitability at each company. In the case of Lowe's Companies Inc, looking at the history chart for LOW below can help in judging whether the most recent dividend is likely to continue, and in turn whether it is a reasonable expectation to expect a 2% annual yield.
LOW has been growing its dividend for more than 20 years consecutively. For more dividend growth stocks view our Dividend Aristocrats List on Dividend Channel.
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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 (LOW) Shares Cross 2% Yield Mark

Key Points
Lowe's is investing in its professional services to accelerate revenue growth and expand margins.
Contractors and tradespeople spend more money with the chain than do-it-yourself customers.
Slow revenue growth and significant long-term debt could continue to tighten its margins in the short run.
Lowe's (NYSE: LOW) stock is essentially flat year to date, while the S&P 500 has roared ahead with a 16% gain. The home improvement company has fared better over the past five years, logging a 47% gain, but it still trails the index gain of 86%. Lowe's does pay a dividend that yields 1.9% at the current share price, which adds a bit of a boost to its total returns, but they're still not close to those of the broad-market index.
Was this slow year a fluke or a sign of things to come? Here are some key areas to monitor if you are considering investing in Lowe's stock.
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More professional builders are turning to Lowe's
Lowe's has made a big push to attract professional builders and contractors to its locations. These buyers spend more money than regular customers and make regular visits to Lowe's and its peers since home building is their job.
In June, Lowe's acquired Artisan Design Group, and in October, it closed on its purchase of Foundation Building Materials -- two deals it inked to make itself a more appealing choice for builders.
The MyLowe's Pro Rewards program has been a big hit ever since it was relaunched earlier this year. It offers members-only deals and additional perks for professional builders. The MyLowe's Pro Rewards Credit Card also lets customers save up to 5% on everyday purchases for eligible products.
The company noted in its third-quarter earnings release that it sees enhancing its offerings for professional customers as a key to generating more sustainable sales and profit growth.
Slow revenue growth and high debt aren't a good combination
Although its professional sales are picking up, overall, Lowe's business has been stagnant. It only reported 0.4% year-over-year comparable sales growth in Q3, and total sales only increased by 3%. Meanwhile, its net income dipped by 5%.
Lowe's now projects that it will pay $1.4 billion in interest expenses for the entire year. That's higher than its previous $1.3 billion forecast and represents a large chunk of the company's profits. For instance, Lowe's reported $2.48 billion in Q3 operating income, and $352 million of that went to interest. Lowe's puts roughly 14% of its net operating income toward interest, and that amount could rise if Lowe's has to borrow more.
With a 1.04 current ratio, the retailer barely has enough current assets to cover its current liabilities. It's also sitting on $37.5 billion in long-term debt.
If Lowe's professional services business gains momentum, it could translate into long-term margin expansion, which would help it pay down its debt. The stock doesn't look good now, but investors have to remember that patience is required in long-term investing. Even top growth stocks have bad quarters and years, but if a company's fundamentals remain strong, its stock price will likely eventually catch up.
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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.

Can Lowe's Stock Rebound From Its Flat 2025?

In the rapidly evolving world of retail, the two dominant players in U.S. home improvement, The Home Depot, Inc. HD and Lowe’s Companies, Inc. LOW, are both investing heavily in artificial intelligence (AI). As digital tools reshape how consumers research, plan and execute home improvement projects, AI has become less about experimentation and more about competitive necessity. For retailers operating at a massive scale, the ability to embed intelligence into customer interactions, supply chains and professional services can materially influence growth, efficiency and long-term market share.
While both companies see AI as a strategic priority, their approaches reveal meaningful differences in emphasis and ambition. Home Depot is leaning into a disciplined, execution-first model, deploying AI to enhance core operations and reinforce existing strengths. Lowe’s, by contrast, is positioning AI as foundational infrastructure, using it to reimagine customer guidance, empower associates and redesign how the business operates end-to-end. Together, these strategies offer a clear view into how two industry leaders are leveraging the AI boom to shape the future of home improvement retail.
How HD Is Leveraging the AI Boom
Home Depot is proving that AI does not need hype to be transformative; it needs scale, discipline and execution. Rather than pitching AI as a futuristic overhaul, the retailer is embedding it directly into the moments that matter most: how customers shop, how products move and how professionals plan complex projects. This pragmatic approach treats AI as core infrastructure, quietly compounding advantages across a trillion-dollar home improvement market.
On the customer-facing side, Home Depot’s generative AI suite, known as Magic Apron, is redefining digital retail assistance. Launched in early 2025 and now embedded across millions of product pages on its website and mobile app, it functions like a digital store associate — answering product questions, summarizing reviews, comparing products and offering how-to guidance rooted in proprietary data. The goal is higher engagement and conversion without disrupting the trusted shopping experience.
Behind the scenes, AI is strengthening operations. Machine-learning systems, such as its “ship-from-best-location” model, optimize fulfillment, while computer vision and inventory algorithms streamline restocking and order picking across more than 2,300 stores.
The most strategic use of AI lies in Home Depot’s expanding Pro ecosystem. AI-powered Blueprint Takeoffs automate material lists and cost estimates from construction plans, turning a once-manual process into a scalable advantage. Together, these tools position Home Depot as a true end-to-end partner for contractors.
Lowe’s: Building an AI-First Retail Engine for Long-Term Advantage
Lowe’s is emerging as a clear retail beneficiary of the AI boom by treating artificial intelligence as a core infrastructure, not a bolt-on feature. Its Total Home strategy embeds AI across customer planning, associates’ expertise and enterprise operations, creating a unified intelligence layer that connects digital experiences, physical stores and decision-making at scale.
At the customer level, Lowe’s is using generative AI to reshape how home improvement guidance is delivered. Tools like MyLowe act as an always-available expert — helping shoppers move from inspiration to execution with tailored recommendations, step-by-step advice and contextual product guidance. By reducing friction in complex categories, Lowe’s boosts confidence, basket size and project completion rates, turning AI into a direct revenue driver.
Internally, Lowe’s is using AI to amplify human expertise rather than replace it. MyLowe Companion equips associates with real-time access to product intelligence, inventory data and expert insights, improving service across more than 1,700 stores. Meanwhile, machine learning enhances forecasting, pricing and inventory planning, lifting margins and in-stock performance.
Looking ahead, Lowe’s outlook is defined by ambition. Through partnerships with OpenAI, NVIDIA, Palantir and Apple, Lowe’s is accelerating into spatial commerce, digital twins and simulation-driven retail design. These technologies strengthen a competitive moat built on intelligence and execution.
HD vs. LOW: How Do Estimates Stack Up?
The Zacks Consensus Estimate for Home Depot’s fiscal 2025 projects a 3.2% increase in sales but a 4.5% decline in EPS compared to last year's results. For fiscal 2026, the consensus estimate indicates a 4.4% rise in sales and 4.1% growth in EPS. The consensus estimate for EPS for fiscal 2025 and 2026 has fallen by 17 cents and 51 cents to $14.51 and $15.10, respectively, in the past 30 days.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for Lowe’s fiscal 2025 sales and EPS implies growth of 2.9% and 2.2%, respectively, from the year-ago period’s actuals. For fiscal 2026, the consensus estimate indicates an 8.7% rise in sales and 6.2% growth in EPS. The consensus estimate for EPS for fiscal 2025 and 2026 has fallen by 1 cent and 10 cents to $12.26 and $13.01, respectively, in the past 30 days.
Image Source: Zacks Investment Research
Price Performance & Valuation of HD & LOW
In the past six months, Home Depot’s shares have declined 3.9%, significantly lagging Lowe’s, which climbed 10%.
Image Source: Zacks Investment Research
From a valuation standpoint, Home Depot is trading at a forward 12-month price-to-earnings (P/E) ratio of 23.03X, below its one-year median of 24.00X. Meanwhile, Lowe’s forward P/E ratio stands at 18.72X, above its median of 18.62X.
Image Source: Zacks Investment Research
Conclusion
The contrast between Home Depot and Lowe’s reflects two distinct but credible paths in adopting advanced technology. Home Depot is reinforcing its leadership by integrating intelligence into execution, logistics and professional services, while Lowe’s is reshaping its operating model around a more unified, intelligence-driven framework. In an increasingly complex retail environment, both approaches underscore that smart, scalable technology is now central to competitiveness. Ultimately, the long-term winner will be the company that most effectively embeds AI into everyday decision-making, translating insight into consistent customer value and sustainable growth.
While Lowe’s carries a Zacks Rank #3 (Hold) at present, Home Depot has a Zacks Rank #4 (Sell).
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LOW vs. HD: Which Home Improvement Giant Is Making the Bigger AI Bet?

The Home Depot, Inc.’s HD third-quarter fiscal 2025 results highlight the growing importance of its Pro customer base as DIY demand remains uneven. While total sales grew 2.8% to $41,352 million, management noted that an expected demand surge failed to materialize amid persistent consumer uncertainty and housing pressures. Against these DIY headwinds, the Pro segment is emerging as a stabilizing force. Both Pro and DIY comparable sales were positive and relatively in line this quarter, yet the company is disproportionately investing in tools to capture more complex professional projects.
The recent acquisition of GMS, a specialty distributor of building products, contributed roughly $900 million in sales during the quarter. This move complements the existing SRS Distribution business, which maintained flat comparable sales despite double-digit declines in the broader roofing market. Home Depot is further fortifying its Pro ecosystem with new digital tools, including blueprint takeoffs, designed to simplify material estimation and procurement.
Pro engagement helped sustain higher-value purchases. Average ticket rose 1.8% during the quarter, reflecting an increased mix of higher ticket items. We note that big-ticket comp transactions of more than $1,000 increased 2.3% year over year. Home Depot noted strength in Pro-heavy categories such as gypsum, insulation, siding and plumbing.
Management acknowledged that housing turnover is at multi-decade lows and that consumer uncertainty continues to weigh on renovation activity. These same dynamics are affecting Pros, particularly those tied to larger financed projects, as backlog visibility has begun to soften. DIY trends remain challenged as customers pull back on discretionary spending, and management confirmed that the expected second-half demand pickup did not materialize. Pro strength is providing cushion, but not driving meaningful acceleration.
Are FND and LOW Seeing a Structural Demand Reset?
Floor & Decor Holdings, Inc. FND continues to face industry-wide softness, with third-quarter 2025 comparable store sales down 1.2% as transactions remain pressured. Despite better Pro engagement and category innovation, Floor & Decor repeatedly acknowledged that the hard-surface flooring market remains in a trough and that demand recovery is uncertain. This suggests Floor & Decor is navigating similar structural headwinds as Home Depot.
Lowe's Companies, Inc. LOW posted third-quarter fiscal 2025 comparable sales at 0.4% but also cited an anxious consumer and continued pressure on big-ticket discretionary spending. While Pro, appliances and online improved, Lowe's emphasized that affordability constraints and macro uncertainty remain barriers to any broad rebound. Overall, Lowe's also appears constrained by the same structural demand backdrop limiting large-project activity.
What the Latest Metrics Say About Home Depot
Home Depot shares have fallen 12% in the past year compared with the industry’s decline of 17.4%.
Image Source: Zacks Investment Research
From a valuation standpoint, Home Depot trades at a forward price-to-earnings ratio of 22.94, higher than the industry’s 20.87. HD carries a Value Score of C.
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 4.8%.
Image Source: Zacks Investment Research
Home Depot currently carries a Zacks Rank #4 (Sell).
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Is Home Depot's Pro Momentum Enough to Offset DIY Slowdowns?

Key Points
Lowe's results are highly dependent on the larger economy.
It's pushing to sell more to professional contractors.
The end of the year brings joy to many as people celebrate the holidays. In between parties and family gatherings, it's also a good time for investors to review their holdings and potential investments.
Let's turn to home-improvement retailer Lowe's (NYSE: LOW) to see how the company performed in 2025 and what to look for in 2026.
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A look at 2025
Based on the stock's performance, Lowe's shareholders don't have much to celebrate in 2025. The share price lost 0.1% this year through Dec. 15, well behind the S&P 500 index's 15.6% appreciation. When adding dividends, Lowe's stock returned 2.8%, trailing the index's 17.3% total return.
Lowe's had positive same-store sales (comps) over the last couple of quarters. However, fiscal third-quarter comps only increased 0.4%. The period ended on Oct. 31.
The comps' increase was due to higher spending, with the average ticket contributing 3.4 percentage points. Traffic declined, accounting for a 3 percentage point drop in comps.
What to watch for in 2026
The company's sales results fluctuate with the economy. That's because people tend to buy homes and take on major projects when they're feeling good about their economic prospects. Certain issues in the overall economy have undoubtedly played a role in the company's recent sluggish comps.
You should pay particular attention to certain U.S. economic statistics. Notably, new home and existing home sales should top the list. That's because people tend to undertake remodeling projects when they buy a home. As a major home-improvement retailer, that bodes well for Lowe's.
It's also important to look at what's happening with interest rates. Longer-term Treasury yields affect mortgage rates, which in turn impact homebuying. But you should also watch to see if the Federal Reserve continues cutting short-term interest rates. These affect home equity loans, which some people use to finance major home renovations.
Employment, another important consideration when examining Lowe's prospects, has shown signs of weakness. Obviously, people who have lost, or fear losing, their jobs aren't likely to spend a lot of money at Lowe's for significant projects.
Consumer confidence affects the economy, too. If people feel good, they'll spend money, boosting economic growth.
While it's important to monitor the U.S. economy's overall health, you should also look at the company specifically. Lowe's, like Home Depot, has been making a major push into the professional contractor market. This includes acquiring Foundation Building Materials for $8.8 billion and Artisan Design Group for $1.3 billion, both completed this year.
It's worth listening to any comments management provides regarding Lowe's progress with professional contractors, particularly sales growth in this market.
Should you buy stock in Lowe's Companies right now?
Before you buy stock in Lowe's Companies, consider this:
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Lawrence Rothman, CFA has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Home Depot. The Motley Fool recommends 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.

What to Watch With Lowe's Stock in 2026

A month has gone by since the last earnings report for Lowe's (LOW). Shares have added about 8.4% in that time frame, outperforming the S&P 500.
But investors have to be wondering, will the recent positive trend continue leading up to its next earnings release, or is Lowe's due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important catalysts.
Lowe's Q3 Earnings Top, Comps Rise on Pro Strength, FY25 Sales View Up
Lowe’s posted third-quarter fiscal 2025 results with year-over-year growth in both the top and bottom lines. While revenues came in line with the Zacks Consensus Estimate, earnings surpassed the same. The Mooresville, NC-based home improvement retailer posted another quarter of positive comparable sales, reflecting continued traction across Pro, online and home services performance.
Management noted that November also started with positive comparable sales, even against last year’s hurricane-related demand. With the Foundation Building Materials (FBM) acquisition completed last month, Lowe’s emphasized that it is positioned to expand its reach within the Pro segment and drive long-term sales and profit improvement. Lowe’s also updated its full-year outlook to incorporate the recently closed FBM acquisition and reflect ongoing macro uncertainty.
LOW’s Quarterly Performance: Key Metrics & Insights
Lowe’s posted adjusted earnings of $3.06 per share, which beat the Zacks Consensus Estimate of $2.97. The figure marked a 5.9% increase from earnings of $2.89 per share reported in the same period last year. Including costs related to the acquisition of FBM and Artisan Design Group, quarterly earnings came in at $2.88 per share, down from $2.99 in the prior-year period.
Net sales of $20,813 million met the consensus estimate and increased slightly from $20,170 million in the previous year. The growth was driven by a 0.4% rise in comparable sales, reflecting 11.4% online sales growth, double-digit growth in home services and continued expansion in the Pro segment. We had expected a 1.3% increase in comparable sales.
LOW’s Margin & Cost Details
The gross margin expanded to 34.2%, up 50 basis points from the prior-year quarter. SG&A expenses increased to 20% of sales, up from 19% in the year-ago period, reflecting acquisition-related items and higher operating costs.
As a result, operating income came in at $2,481 million, down from $2,536 million in the year-ago quarter. The operating margin contracted to 11.9% from 12.6%.
LOW’s Financial Health Snapshot
This company ended the quarter with cash and cash equivalents of $621 million, long-term debt (excluding current maturities) of $37,498 million and a shareholders’ deficit of $10,382 million.
For the nine months ended Oct. 31, operating cash flow totaled $8,297 million. During the quarter, the company deployed $8.8 billion for the FBM acquisition and paid $673 million in dividends.
As of Oct. 31, 2025, Lowe's operated 1,756 stores, encompassing a total of 195.8 million square feet of retail selling space.
A Sneak Peek Into LOW’s FY25 Outlook
Lowe’s now expects total sales of $86 billion, up from the prior range of $84.5-$85.5 billion. Comparable sales are projected to be flat compared with the earlier expectation of flat to up 1%. The company anticipates an adjusted operating margin of 12.1%, slightly below the previous forecast of 12.2%-12.3%. Net interest expenses are now expected to be approximately $1.4 billion versus the prior $1.3 billion.
Lowe’s expects adjusted earnings of about $12.25 per share, within the earlier projected range of $12.20-$12.45. Capital expenditures remain guided at approximately $2.5 billion.
How Have Estimates Been Moving Since Then?
In the past month, investors have witnessed a downward trend in estimates revision.
The consensus estimate has shifted -5.91% due to these changes.
VGM Scores
Currently, Lowe's has a average Growth Score of C, though it is lagging a lot on the Momentum Score front with an F. However, the stock has a grade of C on the value side, putting it in the middle 20% for value investors.
Overall, the stock has an aggregate VGM Score of C. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. Interestingly, Lowe's has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.
Performance of an Industry Player
Lowe's belongs to the Zacks Retail - Home Furnishings industry. Another stock from the same industry, Home Depot (HD), has gained 6.8% over the past month. More than a month has passed since the company reported results for the quarter ended October 2025.
Home Depot reported revenues of $41.35 billion in the last reported quarter, representing a year-over-year change of +2.8%. EPS of $3.74 for the same period compares with $3.78 a year ago.
For the current quarter, Home Depot is expected to post earnings of $2.53 per share, indicating a change of -19.2% from the year-ago quarter. The Zacks Consensus Estimate has changed -6.9% over the last 30 days.
Home Depot has a Zacks Rank #4 (Sell) based on the overall direction and magnitude of estimate revisions. Additionally, the stock has a VGM Score of D.
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Why Is Lowe's (LOW) Up 8.4% Since Last Earnings Report?

The Home Depot, Inc. HD and Lowe’s Companies, Inc. LOW are key players in the home improvement retail sector, serving both do-it-yourself (DIY) customers and professional contractors. Home Depot, with a market capitalization of around $355 billion, is the leading retailer focused on meeting home renovation, maintenance and construction needs. It operates more than 2,300 retail stores across the United States, Canada and Mexico, supported by a robust supply chain.
In contrast, Lowe’s has a market capitalization of about $139 billion and operates more than 1,700 stores, primarily in the United States. Lowe’s has firmed its position by prioritizing merchandising discipline and store productivity, and focusing on a “total home” strategy to attract both DIY homeowners and professional customers. The company is driving higher engagement through loyalty programs and AI-enabled.
Both companies are navigating a home improvement market marked by cautious consumer spending and slower housing turnover. While Home Depot benefits from its extensive scale, deeper pro penetration and supply-chain leverage, Lowe’s offers a more agile model with room for operational and market-share gains. For investors evaluating stability versus growth potential, the key question remains: Does Home Depot’s dominance make it the safer bet, or does Lowe’s focused strategy offer a more compelling investment opportunity in 2026?
The Case for Home Depot
Home Depot’s long-term growth strategy is increasingly shaped by its expanding Pro ecosystem, strengthened through the additions of SRS and GMS. These platforms give the company a deeper reach into specialty building materials and create natural cross-sell pathways between retail and wholesale channels. As SRS demonstrates resilience in challenging categories and GMS broadens access to drywall, ceilings and framing products, the combined network serves as a powerful engine for market-share gains with contractors who prefer a fully integrated supplier.
The company is also enhancing its focus on professional contractors by introducing a new AI-powered tool designed to reshape how Pro customers plan and execute complex projects. The company highlighted that its blueprint takeoffs tool utilizes advanced AI and proprietary algorithms to analyze construction plans and generate material estimates with far greater speed and accuracy than traditional methods. This technology replaces the labor-intensive process that earlier took Pro customers weeks to complete.
By incorporating this advanced technology, Home Depot is reinforcing its position as the go-to destination for all project requirements, from initial planning to material delivery. This development marks a significant step forward in catering to the Pro category. This progress allows Home Depot to differentiate its Pro offerings not only through product assortment but also through digital infrastructure. Exclusive brands, curated assortments and elevated seasonal offerings reinforce customer loyalty while maintaining the company’s competitive edge in categories where product leadership and brand preference matter.
However, recent trends indicate that the company is facing structural headwinds, weaker demand visibility and margin pressure. The softness in housing turnover, a key driver of repair-and-remodel spending, remains a notable drag. With management citing housing activity at nearly 40-year lows and consumer behavior still pressured by affordability constraints, the company delivered a modest 0.2% increase in comparable sales in the third quarter, with U.S. comps up only 0.1%, sharply down from 1% and 1.4% increases, respectively, in the preceding quarter.
Home Depot acknowledged that a lack of storms significantly impacted categories such as roofing, power generation and plywood in the third quarter. Additionally, the slight increase in the average ticket of 1.8% was offset by a 1.6% decrease in customer transactions, indicating a loss of traffic that the business has yet to address. Moreover, the high-value Pro customer segment is showing signs of weakness, with management noting reduced backlogs for larger projects, suggesting capital constraints or lower confidence among professional builders.
The Case for Lowe’s
Lowe’s is another formidable player in the home improvement sector, supported by a "Total Home Strategy" that addresses the diverse needs of both professional contractors and do-it-yourself homeowners. By combining specialized services with a robust digital infrastructure, LOW has redefined itself as not merely a retail destination but a comprehensive solution provider.
A key aspect of this strategy is the expansion into the high-value Professional market, which was recently accelerated by the acquisition of Foundation Building Materials (FBM). This buyout has expanded Lowe's product portfolio in interior building materials and enhanced its distribution capabilities, particularly in dense urban markets where the brand has a smaller presence historically. By integrating supplier systems into its sales interface, Lowe’s enables its associates to offer an "extended aisle" of specialized inventory for large-scale professional projects.
Technological innovation, specifically the adoption of artificial intelligence, is a significant competitive advantage for Lowe’s. Through advanced virtual assistants, the company has simplified complex project planning for consumers and provided store associates with real-time expertise, resulting in customer satisfaction and conversion. Furthermore, AI in demand planning and inventory management has enabled more efficient resource allocation, ensuring that the right products are available to meet shifting consumer demands without the burden of excessive inventory.
Lowe’s focus on high-growth categories, such as major appliances, home services and exclusive private brands, further solidifies its position. Lowe’s has developed a unique "market delivery network" that provides installation capabilities in virtually every domestic zip code. With record levels of home equity encouraging homeowners to invest in their current properties rather than relocate, Lowe’s is uniquely positioned to benefit from the "lock-in effect" within the housing market.
Backed by prudent capital allocation and a strong focus on efficiency, Lowe’s demonstrates the discipline and strategic clarity needed to deliver steady long-term returns. However, still higher interest rates, cautious homeowners and slower housing turnover continue to pressure demand for large, discretionary home improvement projects, making it difficult for the company to generate strong volume growth.
HD vs. LOW: How Do Estimates Stack Up?
The Zacks Consensus Estimate for Home Depot’s current fiscal year projects a 3.2% increase in sales but a 4.5% decline in EPS compared to last year's results. For the next fiscal year, the consensus estimate indicates a 4.4% rise in sales and 4.3% growth in earnings. The consensus estimate for EPS for the current and next fiscal year has fallen by 41 cents and $1.01 to $14.55 and $15.18, respectively, over the past 30 days.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for Lowe’s current financial-year sales and EPS implies growth of 2.9% and 2.2%, respectively, from the year-ago period’s actuals. For the next fiscal year, the consensus estimate indicates an 8.7% rise in sales and 6.2% growth in earnings. The consensus estimate for EPS for the current and next fiscal year has fallen by 3 cents and 19 cents to $12.26 and $13.01, respectively, over the past 30 days.
Image Source: Zacks Investment Research
HD vs. LOW: A Look at Past Six-Month Stock Performance
Home Depot shares have edged up 2.8% over the past six months, trailing Lowe’s, which has surged 17.6% over the same period.
Image Source: Zacks Investment Research
HD vs. LOW: Stock Valuation
Home Depot is trading at a forward 12-month price-to-earnings (P/E) ratio of 23.63, below its one-year median of 24.01. Meanwhile, Lowe’s forward P/E ratio stands at 19.19, above its median of 18.63.
Image Source: Zacks Investment Research
HD vs. LOW: Which Is a Better Bet for 2026?
Lowe’s emerges as the more compelling choice for investors heading into 2026. While Home Depot retains unmatched scale, brand strength and a deeply entrenched Pro ecosystem, its near-term outlook is constrained by structural headwinds in the housing market. In contrast, Lowe’s is benefiting from sharper execution, improving operational efficiency, and a strategy that is gaining traction across both professional and DIY segments. Its focus on agility, technology-driven productivity and targeted market-share gains positions it better to navigate a sluggish housing backdrop while still delivering incremental upside. While Lowe’s carries a Zacks Rank #3 (Hold), Home Depot has a Zacks Rank #5 (Strong Sell).
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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Home Depot vs. Lowe's: Which Home Improvement Stock to Bet on in 2026?

Looking today at week-over-week shares outstanding changes among the universe of ETFs covered at ETF Channel, one standout is the Schwab US Large-Cap ETF (Symbol: SCHX) where we have detected an approximate $402.0 million dollar inflow -- that's a 0.6% increase week over week in outstanding units (from 2,330,450,000 to 2,345,450,000). Among the largest underlying components of SCHX, in trading today TJX Companies (Symbol: TJX) is off about 0.3%, Lowe's Companies Inc (Symbol: LOW) is down about 0.3%, and Vertex Pharmaceuticals, Inc. (Symbol: VRTX) is up by about 0.1%. For a complete list of holdings, visit the SCHX Holdings page » The chart below shows the one year price performance of SCHX, versus its 200 day moving average:
Looking at the chart above, SCHX's low point in its 52 week range is $18.9997 per share, with $27.27 as the 52 week high point — that compares with a last trade of $26.63. 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 ».
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.