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 appears to be a mature and profitable retailer with strong operating profitability, but with notable balance sheet constraints. A P/E ratio of 15.58 is below the industry median, and its decline from 21.90 to 15.58 over several periods suggests a more moderate valuation as earnings improve — this supports the stock. At the same time, a P/S of 1.27 is noticeably above the industry median, and a P/FCF of 17.25 is also above normal, indicating that the company is not especially cheap based on revenue and free cash flow. Net profit margin of 7.49% and operating margin of 11.55% are above the industry median, confirming solid business efficiency, although both metrics have been gradually declining in recent periods. ROA of 12.13% and ROI of 24.10% look very strong and remain a clear positive for capital quality. Revenue, gross profit, EBITDA, and operating income are high in absolute terms, and revenue has increased to $25.96 billion, which points to scale and a resilient cash-generating profile. However, the gross margin of 33.08% is below the industry median and has been slightly deteriorating over the years, which limits re-rating potential. The balance sheet remains a weak point: current and quick ratios are low, while long-term debt of $35.2 billion and total liabilities of $63.3 billion are large relative to equity. Negative shareholders’ equity and zero ROE/ROTE/price-to-book appear to be a result of the balance sheet structure rather than a sign of strong shareholder returns. Dividend yield is absent in the current data, so the dividend factor does not support the valuation. Overall, the fundamentals justify a moderately cautious view: the business is high quality and profitable, but somewhat expensive on cash flow and burdened by a weak balance sheet. For the target price, this implies only a small negative adjustment rather than a revision of the company thesis.

Lowe's Companies, Inc.

Средний индекс, значительно упал. Быки продолжают терять уверенность.

Medium index, significantly down. Bulls continue to lose confidence.

Сильный индекс, без изменений. Рынок не поддерживает быков.

Strong index, flat. The market does not support the bulls.

Сильный индекс, без изменений. Отток средств из лонгов на высоком уровне.

Strong index, flat. Outflow of funds from longs at a high level.

Strong operating profitability and low P/E support LOW, but weak liquidity, high debt, and an expensive P/FCF limit the upside.

Key Points
Both companies' results have been hurt by economic forces beyond their control.
Home Depot's results have held up better than those of its longtime rival.
Both companies' valuations have become less expensive.
Picking value stocks isn't easy. That's because value investing involves buying stocks that you perceive as undervalued. Companies' stock prices and valuations can fall for any number of reasons. Value investors believe the market has mispriced their prospects, which will result in appreciable gains.
Home Depot (NYSE: HD) trades at a higher share price than Lowe's Companies (NYSE: LOW), but that doesn't mean it's the better value. You'll need to compare valuations based on a common metric, like price-to-earnings (P/E) ratios, compared to their long-term growth prospects.
Missed AI’s "Act 1"? Act 2 Could Be 15x Bigger. Most investors think they missed the AI boat because they didn't buy Nvidia in 2005. But according to our analysts, we’re only at the end of "Act 1"—the R&D phase. "Act 2" is the global rollout. Continue »
Home Depot vs. Lowe's
Home Depot and Lowe's both compete in the home-improvement retail space. The former is the largest company in the sector, generating about $165 billion in annual sales. That's nearly double competitor Lowe's $86 billion in sales.
Both companies have high market shares, but their sales are sensitive to macroeconomic conditions. These include home sales, interest rates, the job market, and consumer confidence. Right now, with elevated inflation, home sales and borrowing rates have been affected, and homeowners have put off major renovations.
That explains the companies' tepid sales growth. However, Home Depot seems to be doing better. The company's fiscal second-quarter (ended Aug. 2) same-store sales (comps) grew 1.7%, and its gross margin expanded from 33.4% to 33.7%. Lowe's fared worse, with comps increasing just 0.2% and gross margin contracting from 33.8% to 33%.
The investment decision
With the economic headwinds, both companies' stock prices haven't fared well lately. Home Depot's share price has lost 14.8% this year, through Sept. 25. During this time, Lowe's stock has dropped 21.5%. They trailed the S&P 500 index's 13.1% gain.
However, for patient investors willing to wait for economic conditions to improve and homeowners to undertake major renovations, the stocks offer upside since they trade at better valuations.
Home Depot's stock has a P/E ratio of 21, down from 24 at the start of the year and lower than its 10-year median of 23. Lowe's shares have a P/E multiple of 16, down from 21, which is also its 10-year median.
While both stocks trade at attractive valuations compared to their historical P/E ratios, I favor Home Depot as the better value stock compared to Lowe's. With its bigger size giving it advantages like convenience and economies of scale, it seems Home Depot will emerge stronger once better economic times arrive.
Should you buy stock in Home Depot right now?
Before you buy stock in Home Depot, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Home Depot wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $373,352!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,406,241!*
Now, it’s worth noting Stock Advisor’s total average return is 933% — a market-crushing outperformance compared to 212% for the S&P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors.
*Stock Advisor returns as of September 29, 2026.
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.

Which Value Stock Is the More Obvious Buy Now: Home Depot Under $310 a Share or Lowe's Under $200 a Share?

Key Points
Lowe's is an iconic home improvement stock that's been struggling this year, but its fundamentals remain strong.
Rising interest rates have pushed down shares of Southern Company and Duke Energy lately.
These stocks have all been raising their payouts in recent years, and they're likely to continue doing so in the future.
The one thing that's better than just a regular dividend stock is a stock that also grows its dividend. For investors, this provides an incentive to hang on for the long haul, as the income from the investment rises over time.
A bonus is when dividend growth stocks are on sale, as that means their yields are also higher than normal. Three stocks that recently hit new 52-week lows and that are solid income investments are Lowe's (NYSE:LOW), Southern Company (NYSE:SO), and Duke Energy (NYSE:DUK).
Missed Nvidia in 2009? This Rare Signal Is Flashing Again. In 2009, a "Double Down" signal flashed for a little-known chipmaker called Nvidia. For the first time in years, that same "Total Conviction" signal is flashing for a company 1/100th the size of Nvidia. Continue »
Image source: Getty Images.
Lowe's
Lowe's is a top home improvement company with a history dating back more than a century. It's not only a top retailer in the country but also a solid income-generating investment.
This year, the retail stock has been struggling, as it's down 23% since the beginning of the year. Rising interest rates may have rattled investors, fearing that it will result in a decline in homebuying and thus, renovations. But for long-term investors, that really doesn't matter. There will be an inevitable bounce-back, as home repairs and renovations are inevitable expenses that can only be delayed.
With the decline in its share price, Lowe's makes for a fantastic buy right now. Its yield is up to 2.7%, which is more than double the rate of the S&P 500 average (1.1%). The company has increased its dividend for decades, with the most recent increase coming in May, when Lowe's raised its dividend by 4%.
Although the market may be bearish on Lowe's, its future remains bright. And in the trailing 12 months, the company has generated $7 billion in free cash flow -- easily enough to cover its cash dividend payments totaling $2.7 billion over that time frame. For long-term investors, the stock looks like a no-brainer buy, especially with it trading at a forward price-to-earnings (P/E) multiple of just 16, which is based on analyst projections.
Southern Company
Another stock that's been tumbling in recent weeks is Southern Company, which operates gas and electric utilities. It's an asset-heavy business, so when interest rates rise, the market can turn bearish on it, as it has, since the Fed raised interest rates earlier in the month.
For long-term dividend investors, however, this can be great news, as Southern's stock has hit fresh 52-week lows. Its dividend yield is now up around 3.7%. In April, the company announced it was raising its dividend for a 25th consecutive year, as it boosted its quarterly dividend payment by eight cents.
The stock has a manageable payout ratio of about 72%, which suggests it's not only safe but that there is room for more rate increases in the future. The inherent stability of its business makes this a top dividend stock to consider hanging on to. Its forward P/E of 17 is also lower than the S&P 500 average of 20, making it an appealing value buy.
Duke Energy
Another utility stock the market has grown bearish on amid rising interest rates is Duke Energy. It's trading at a new low, and, due to its recent tailspin, it now yields 3.8%, making it the highest-yielding investment on this list.
Duke is a leading energy company with both gas and electric operations, as it serves millions of people every day. A decade ago, the stock was paying its shareholders $0.855 per share on a quarterly basis. It has since increased its quarterly payout by 27%, to $1.085 per share each quarter. That averages out to a compounded annual growth rate of 2.4%.
This is another utility stock that's also trading at approximately 16 times its forward earnings. It's hard to go wrong with any of these dividend stocks, but with Duke being a top energy company and offering the highest yield, it may just be the most attractive one on this list.
Should you buy stock in Lowe's Companies right now?
Before you buy stock in Lowe's Companies, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Lowe's Companies wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $373,352!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,406,241!*
Now, it’s worth noting Stock Advisor’s total average return is 933% — a market-crushing outperformance compared to 212% for the S&P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors.
*Stock Advisor returns as of September 29, 2026.
David Jagielski, CPA has no position in any of the stocks mentioned. The Motley Fool recommends Duke Energy and Lowe's Companies. The Motley Fool has a disclosure policy.
Founded in 1993 in Alexandria, VA., by brothers David and Tom Gardner, The Motley Fool is a multimedia financial-services company dedicated to building the world's greatest investment community. Reaching millions of people each month through its website, books, newspaper column, radio show, television appearances, and subscription newsletter services, The Motley Fool champions shareholder values and advocates tirelessly for the individual investor. The company's name was taken from Shakespeare, whose wise fools both instructed and amused, and could speak the truth to the king -- without getting their heads lopped off.

3 Dividend Growth Stocks That Have Recently Hit New 52-Week Lows

In the latest look at the underlying components of the S&P 500 ordered by largest market capitalization, Lowe's Companies Inc (Symbol: LOW) has taken over the #107 spot from Automatic Data Processing Inc. (Symbol: ADP), according to The Online Investor.
Market capitalization is an important data point for investors to keep an eye on, for various reasons. The most basic reason is that it gives a true comparison of the value attributed by the stock market to a given company's stock. Many beginning investors look at one stock trading at $10 and another trading at $20 and mistakenly think the latter company is worth twice as much — that of course is a completely meaningless comparison without knowing how many shares of each company exist. But comparing market capitalization (factoring in those share counts) creates a true "apples-to-apples" comparison of the value of two stocks. In the case of Lowe's Companies Inc (Symbol: LOW), the market cap is now $105.75 billion, versus Automatic Data Processing Inc. (Symbol: ADP) at $104.52 billion.
Below is a chart of Lowe's Companies Inc versus Automatic Data Processing Inc. plotting their respective size rank within the S&P 500 over time (LOW plotted in blue; ADP plotted in green):
Below is a three month price history chart comparing the stock performance of LOW vs. ADP:
Another reason market capitalization is important is where it places a company in terms of its size tier in relation to peers — much like the way a mid-size sedan is typically compared to other mid-size sedans (and not SUV's). This can have a direct impact on which mutual funds and ETFs are willing to own the stock. For instance, a mutual fund that is focused solely on Large Cap stocks may for example only be interested in those companies sized $10 billion or larger. Another illustrative example is the S&P MidCap index which essentially takes the S&P 500 index and "tosses out" the biggest 100 companies so as to focus solely on the 400 smaller "up-and-comers" (which in the right environment can outperform their larger rivals). So a company's market cap, especially in relation to other companies, carries great importance, and for this reason we at The Online Investor find value to putting together these rankings daily.
Examine the full LOW market cap history vs. the full ADP market cap history.
At the closing bell, LOW is up about 0.4%, while ADP is up about 0.2% on the day Friday.
Further LOW Research:

Lowe's Companies Takes Over #107 Spot From Automatic Data Processing

Lowe's (LOW) closed the most recent trading day at $188.49, moving -1.5% from the previous trading session. This change lagged the S&P 500's daily loss of 0.03%. Elsewhere, the Dow lost 0.31%, while the tech-heavy Nasdaq added 0.01%.
The home improvement retailer's shares have seen a decrease of 9.03% over the last month, not keeping up with the Retail-Wholesale sector's loss of 5.06% and the S&P 500's gain of 0.53%.
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 November 18, 2026. The company is forecasted to report an EPS of $2.88, showcasing a 5.88% downward movement from the corresponding quarter of the prior year. Alongside, our most recent consensus estimate is anticipating revenue of $22.39 billion, indicating a 7.59% upward movement from the same quarter last year.
For the full year, the Zacks Consensus Estimates project earnings of $12.27 per share and a revenue of $92.03 billion, demonstrating changes of -0.16% and +6.66%, respectively, from the preceding year.
Investors should also take note of any recent adjustments to analyst estimates for Lowe's. These latest adjustments often mirror the shifting dynamics of short-term business patterns. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the business health and profitability.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
The Zacks Rank system, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed a 0.01% decrease. Lowe's currently has a Zacks Rank of #4 (Sell).
In terms of valuation, Lowe's is presently being traded at a Forward P/E ratio of 15.6. This expresses a discount compared to the average Forward P/E of 18.46 of its industry.
We can additionally observe that LOW currently boasts a PEG ratio of 2.54. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. LOW's industry had an average PEG ratio of 1.92 as of yesterday's close.
The Retail - Home Furnishings industry is part of the Retail-Wholesale sector. This industry currently has a Zacks Industry Rank of 191, which puts it in the bottom 23% of all 250+ industries.
The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in 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.
7 Best Stocks for the Next 30 Days
Just released: Experts distill 7 elite stocks from the current list of 220 Zacks Rank #1 Strong Buys. They deem these tickers "Most Likely for Early Price Pops."
Since 1988, the full list has beaten the market more than 2X over with an average gain of +23.9% per year. So be sure to give these hand picked 7 your immediate attention.
See them now >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
This article originally published on Zacks Investment Research (zacks.com).

Why Lowe's (LOW) Dipped More Than Broader Market Today

The Home Depot, Inc. HD is leaning harder on professional customers as housing affordability and low turnover continue to suppress larger remodeling projects. That strategy is helping the retailer grow even without a broad housing recovery.
The question is how far Pro momentum can carry the business. Second-quarter fiscal 2026 results show meaningful support from SRS, specialty distribution and cross-selling, but softer traffic and restrained big-ticket demand remain clear limits.
Pro Investments Are Broadening HD's Growth Base
Home Depot's Pro business posted positive comparable sales in the second quarter and outperformed DIY, with gains across all Pro cohorts. Pro-focused categories including decking, dimensional lumber, pipe and fittings, fasteners, hand tools and concrete also grew. Big-ticket transactions above $1,000 increased 2.4% year over year, improving from 0.8% growth in the first quarter.
SRS is becoming a larger piece of that effort. It posted comparable sales above the company average and positive comps across all verticals, while management expects mid-single-digit organic sales growth in fiscal 2026. The Mingledorff's acquisition added HVAC as a fifth SRS operating line, and the GMS platform broadened the product catalog available to professional customers.
Cross-Selling and Delivery Add More Pro Reach
Integration is creating more selling opportunities across Home Depot's network. Over the 12 months through the second quarter, 90% of stores closed at least one SRS sale through QuoteCenter. The combined offering generated incremental sales from homebuilders, commercial customers and remodelers.
Home Depot plans to add 40-50 SRS branches in fiscal 2026 alongside about 15 new retail stores. Digital execution is helping support the broader model as well. Online sales rose 11% in the second quarter, marking a fifth consecutive quarter of double-digit growth, while faster parcel and big-and-bulky delivery improved service levels for both DIY and Pro customers.
The Home Depot, Inc. Price, Consensus and EPS Surprise
Housing Weakness Still Caps the Upside
The housing backdrop remains the central constraint. Comparable customer transactions declined 1% year over year in the second quarter, while comparable average ticket increased 2.8%. Management said housing turnover has remained at historically low levels for four years, with no sign of an inflection point, and customers continue to favor smaller repair and maintenance projects.
That pressure is visible across the industry. Lowe's Companies, Inc. LOW reported a 0.2% comparable-sales increase in its second quarter, driven by Pro, home services and online growth but partly offset by persistent discretionary DIY pressure. Builders FirstSource, Inc. BLDR reported an 8.8% decline in second-quarter net sales, citing a lower housing-starts environment and related headwinds.
Can Pro Expansion Offset the Frozen Market?
Home Depot's Pro expansion is cushioning the housing slowdown, but current results do not show that it can fully replace demand lost to weak turnover and muted large-project activity. The company still delivered 5.7% sales growth and a 1.7% comparable-sales increase in the second quarter, then reaffirmed fiscal 2026 guidance for total sales growth of 2.5-4.5% and comparable sales ranging from flat to 2%.
The stock currently carries a Zacks Rank #3 (Hold). It also has a VGM Score of B, Growth Score of B and Momentum Score of A, while its Value Score of C is less favorable. The Style Scores point to better growth and momentum characteristics than value, while the Zacks Rank keeps the near-term setup balanced. For now, Pro gains, specialty distribution and cross-selling provide support, but a broader housing recovery would still be important for a stronger return of large discretionary projects.
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Research Chief Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
This company targets millennial and Gen Z audiences, generating nearly $1 billion in revenue last quarter alone. A recent pullback makes now an ideal time to jump aboard. Of course, all our elite picks aren’t winners but this one could far surpass earlier Zacks’ Stocks Set to Double like Nano-X Imaging which shot up +129.6% in little more than 9 months.
Free: See Our Top Stock And 4 Runners Up
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

Can Home Depot's Pro Expansion Offset Today's Frozen Housing Market?

The Home Depot, Inc. HD is showing better operating momentum even as the housing backdrop remains difficult. Fiscal second-quarter 2026 sales rose 5.7% year over year to $47.86 billion, while comparable sales increased 1.7%. Adjusted earnings advanced 5.1% to $4.92 per share.
The tension is clear. Pro demand and digital engagement are improving, but customers remain cautious on larger discretionary projects as affordability and low housing turnover constrain renovation activity.
Pro Investments Keep Growth Moving
Home Depot’s Pro business posted positive comparable sales in the second quarter and outperformed DIY, with gains across all Pro cohorts. Pro-heavy categories such as decking, dimensional lumber, pipe and fittings, fasteners, hand tools and concrete also grew. Big-ticket transactions above $1,000 increased 2.4%, improving from 0.8% growth in the first quarter.
SRS is broadening that opportunity. It posted positive comparable sales across all verticals and management expects mid-single-digit organic sales growth for fiscal 2026. The Mingledorff’s acquisition added HVAC as a fifth SRS operating line, while integration with GMS expands the product catalog available to larger professional customers. Over the 12 months through the second quarter, 90% of Home Depot stores closed at least one SRS sale through QuoteCenter.
Digital execution is adding another layer. Online sales increased 11% year over year, marking a fifth straight quarter of double-digit growth. More than 65% of stocked parcel deliveries now arrive the same day or next day, while about 55% of stocked big-and-bulky deliveries arrive within two days.
The Home Depot, Inc. Price, Consensus and EPS Surprise
Housing Headwinds Still Cap Big Projects
Traffic remains a weak point. Comparable customer transactions declined 1% in the second quarter, while comparable average ticket increased 2.8%. That mix shows sales growth is still relying more on spending per visit than on more customer trips.
Larger discretionary projects also remain constrained. Management cited housing affordability and historically low turnover as ongoing drags, with customers favoring smaller repair and maintenance work. Home Depot reaffirmed fiscal 2026 comparable-sales guidance of flat to 2% growth and total sales growth of 2.5-4.5%.
Margins offer limited cushion. Adjusted operating margin slipped 10 basis points in the quarter, and fiscal 2026 guidance calls for an adjusted operating margin of 12.8-13%. The company expects tariff refunds received in the second quarter to be offset by higher fuel, energy and other product input costs over the year.
Peers Face the Same Split Demand
Lowe’s Companies, Inc. LOW is seeing a similar divide. Its second-quarter 2026 comparable sales increased 0.2%, supported by Pro, home services and online growth, while the company cited persistent pressure on discretionary DIY spending.
Builders FirstSource, Inc. BLDR, which is more directly tied to professional construction activity, reported an 8.8% second-quarter sales decline as a lower housing-starts environment weighed on demand. That contrast underscores why Home Depot’s Pro share gains matter, but also why the broader housing cycle remains a meaningful constraint.
What the Zacks Signals Say About HD
HD currently carries a Zacks Rank #3 (Hold). The stock also has a VGM Score of B, Growth Score of B, Momentum Score of A and Value Score of C. The stronger Growth and Momentum readings indicate favorable characteristics in those styles, while the Value Score is more middle-of-the-pack.
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
The Rank is the more important near-term signal. HD trades at 18.9X forward 12-month earnings, above the Zacks sub-industry’s 17.5X but below the S&P 500’s 19.8X. A Zacks Rank #3 supports a measured stance rather than a clear fresh-buy signal. Home Depot’s Pro ecosystem, SRS expansion and digital gains provide identifiable growth drivers, but soft traffic, muted big-ticket demand and limited margin expansion leave the near-term investment case balanced.
Research Chief Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
This company targets millennial and Gen Z audiences, generating nearly $1 billion in revenue last quarter alone. A recent pullback makes now an ideal time to jump aboard. Of course, all our elite picks aren’t winners but this one could far surpass earlier Zacks’ Stocks Set to Double like Nano-X Imaging which shot up +129.6% in little more than 9 months.
Free: See Our Top Stock And 4 Runners Up
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

Is HD Stock Worth Buying as Pro Growth Battles Housing Headwinds?

The Home Depot, Inc. HD shares have fallen 11.4% in the past four weeks, extending a 15.4% decline over the past 12 weeks. The retreat has brought the stock closer to the lower end of its recent valuation range.
The pullback improves the entry price, but the operating backdrop remains uneven. Pro demand, digital growth and broader category strength support the business, while soft traffic, weak housing turnover and cost pressure continue to limit near-term upside.
HD’s Pullback Brings Valuation Closer to Historical Norm
Home Depot trades at 18.93X forward 12-month earnings, below its five-year median of 22.09X and the S&P 500’s 19.84X multiple. The stock remains above the Zacks sub-industry’s 17.46X multiple, so the recent decline has not made HD unusually cheap relative to peers.
Image Source: Zacks Investment Research
Shares are also down 27.6% over the past year and 13.8% year to date. That weakness has reset expectations, but the valuation still leaves room for further pressure if earnings growth or the housing backdrop disappoints.
HD Fundamentals Show Resilience Despite Soft Traffic
Second-quarter fiscal 2026 sales increased 5.7% year over year to $47.86 billion, while comparable sales rose 1.7%. Adjusted earnings increased 5.1% to $4.92 per share and topped the Zacks Consensus Estimate of $4.71.
The mix was less convincing beneath the headline growth. Comparable customer transactions declined 1%, while comparable average ticket increased 2.8%. Still, 13 of 16 merchandising departments posted positive comps, digital sales rose 11%, and Pro posted positive comps while outperforming DIY. Management expects total sales growth of 2.5-4.5% and comparable sales growth of flat to 2% for fiscal 2026.
Housing and Cost Pressures Keep the Risk Case Intact
Larger discretionary projects remain constrained by housing affordability and low turnover. Management said housing turnover has remained at historically low levels for four years, with no clear inflection point. That keeps demand tilted toward smaller repair and maintenance projects.
Margins also face pressure. Second-quarter gross margin benefited from a $685 million tariff refund, but higher fuel, energy and other product input costs are expected to offset that benefit over the year. Adjusted operating margin slipped 10 basis points to 14.7%, and fiscal 2026 adjusted operating margin is projected at 12.8-13%.
Peer Results Reinforce a Mixed Home-Improvement Backdrop
Lowe’s Companies, Inc. LOW reported a 0.2% comparable-sales increase in its fiscal second quarter, supported by Pro, home services and online growth, while persistent DIY macro pressure remained a drag. The company also reduced its full-year comparable-sales outlook to flat.
Builders FirstSource, Inc. BLDR faced a tougher housing environment. Second-quarter net sales fell 8.8% year over year, with the company citing lower housing starts and related headwinds. The contrast shows that repair-oriented demand can remain steadier than new-construction activity, but neither backdrop points to a broad housing recovery.
HD’s Signals Favor Patience After the Pullback
The 11.4% monthly decline has made Home Depot less expensive, while Pro momentum, digital growth and steady cash generation support the longer-term case. Yet soft traffic, constrained big-ticket demand and limited margin expansion keep the risk-reward balance from becoming clearly favorable on price weakness alone.
The Home Depot, Inc. Price, Consensus and EPS Surprise
HD currently carries a Zacks Rank #3 (Hold). It also has a VGM Score of B, Growth Score of B and Momentum Score of A, while its Value Score of C is less favorable. The combination points to solid growth and momentum characteristics, but the Zacks Rank suggests investors may prefer to wait for clearer earnings-estimate support before treating the pullback as a stronger buying signal.
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Research Chief Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
This company targets millennial and Gen Z audiences, generating nearly $1 billion in revenue last quarter alone. A recent pullback makes now an ideal time to jump aboard. Of course, all our elite picks aren’t winners but this one could far surpass earlier Zacks’ Stocks Set to Double like Nano-X Imaging which shot up +129.6% in little more than 9 months.
Free: See Our Top Stock And 4 Runners Up
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

HD Stock Falls 11.4% in a Month. Does the Pullback Offer Opportunity?

Looking today at week-over-week shares outstanding changes among the universe of ETFs covered at ETF Channel, one standout is the NEOS S&P 500 High Income ETF (Symbol: SPYI) where we have detected an approximate $293.9 million dollar inflow -- that's a 2.5% increase week over week in outstanding units (from 224,100,000 to 229,600,000). Among the largest underlying components of SPYI, in trading today Prologis Inc (Symbol: PLD) is up about 0.3%, BlackRock New York Municipal Income Trust (Symbol: BNY) is up about 0.1%, and Lowe's Companies Inc (Symbol: LOW) is lower by about 1.3%. For a complete list of holdings, visit the SPYI Holdings page » The chart below shows the one year price performance of SPYI, versus its 200 day moving average:
Looking at the chart above, SPYI's low point in its 52 week range is $47.77 per share, with $54.47 as the 52 week high point — that compares with a last trade of $53.33. 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.
Further SPYI Research:

Noteworthy ETF Inflows: SPYI, PLD, BNY, LOW

(RTTNews) - Lowe's (LOW) announced the launch of drone delivery that delivers select home improvement items directly to DIY and Pro customers in as fast as 20 minutes. This pilot is now live at Lowe's store in Matthews, N.C. The company said products can be ordered through the DoorDash app and will be delivered via Wing drones. The launch builds on Wing and DoorDash's existing drone delivery operations in the Charlotte area.
Seemantini Godbole, chief information and AI officer at Lowe's, said: "By piloting drone delivery, we're addressing a real project pain point with an innovative solution that is integrated into the retail journey, giving our hometown customers next-generation fulfillment right when they need it."
In pre-market trading on NYSE, Lowe's shares are down 0.53 percent to $190.40.

Lowe's Offers Drone Delivery At Matthews N.C.

The recommendations of Wall Street analysts are often relied on by investors when deciding whether to buy, sell, or hold a stock. Media reports about these brokerage-firm-employed (or sell-side) analysts changing their ratings often affect a stock's price. Do they really matter, though?
Before we discuss the reliability of brokerage recommendations and how to use them to your advantage, let's see what these Wall Street heavyweights think about Lowe's (LOW).
Lowe's currently has an average brokerage recommendation (ABR) of 1.73, on a scale of 1 to 5 (Strong Buy to Strong Sell), calculated based on the actual recommendations (Buy, Hold, Sell, etc.) made by 31 brokerage firms. An ABR of 1.73 approximates between Strong Buy and Buy.
Of the 31 recommendations that derive the current ABR, 20 are Strong Buy and one is Buy. Strong Buy and Buy respectively account for 64.5% and 3.2% of all recommendations.
Brokerage Recommendation Trends for LOW
The ABR suggests buying Lowe's, but making an investment decision solely on the basis of this information might not be a good idea. According to several studies, brokerage recommendations have little to no success guiding investors to choose stocks with the most potential for price appreciation.
Are you wondering why? The vested interest of brokerage firms in a stock they cover often results in a strong positive bias of their analysts in rating it. Our research shows that for every "Strong Sell" recommendation, brokerage firms assign five "Strong Buy" recommendations.
This means that the interests of these institutions are not always aligned with those of retail investors, giving little insight into the direction of a stock's future price movement. It would therefore be best to use this information to validate your own analysis or a tool that has proven to be highly effective at predicting stock price movements.
With an impressive externally audited track record, our proprietary stock rating tool, the Zacks Rank, which classifies stocks into five groups, ranging from Zacks Rank #1 (Strong Buy) to Zacks Rank #5 (Strong Sell), is a reliable indicator of a stock's near-term price performance. So, validating the Zacks Rank with ABR could go a long way in making a profitable investment decision.
Zacks Rank Should Not Be Confused With ABR
In spite of the fact that Zacks Rank and ABR both appear on a scale from 1 to 5, they are two completely different measures.
The ABR is calculated solely based on brokerage recommendations and is typically displayed with decimals (example: 1.28). In contrast, the Zacks Rank is a quantitative model allowing investors to harness the power of earnings estimate revisions. It is displayed in whole numbers -- 1 to 5.
Analysts employed by brokerage firms have been and continue to be overly optimistic with their recommendations. Since the ratings issued by these analysts are more favorable than their research would support because of the vested interest of their employers, they mislead investors far more often than they guide.
In contrast, the Zacks Rank is driven by earnings estimate revisions. And near-term stock price movements are strongly correlated with trends in earnings estimate revisions, according to empirical research.
Furthermore, the different grades of the Zacks Rank are applied proportionately across all stocks for which brokerage analysts provide earnings estimates for the current year. In other words, at all times, this tool maintains a balance among the five ranks it assigns.
Another key difference between the ABR and Zacks Rank is freshness. The ABR is not necessarily up-to-date when you look at it. But, since brokerage analysts keep revising their earnings estimates to account for a company's changing business trends, and their actions get reflected in the Zacks Rank quickly enough, it is always timely in indicating future price movements.
Is LOW Worth Investing In?
Looking at the earnings estimate revisions for Lowe's, the Zacks Consensus Estimate for the current year has declined 0% over the past month to $12.27.
Analysts' growing pessimism over the company's earnings prospects, as indicated by strong agreement among them in revising EPS estimates lower, could be a legitimate reason for the stock to plunge in the near term.
The size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, has resulted in a Zacks Rank #4 (Sell) for Lowe's. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>
Therefore, it could be wise to take the Buy-equivalent ABR for Lowe's with a grain of salt.
7 Best Stocks for the Next 30 Days
Just released: Experts distill 7 elite stocks from the current list of 220 Zacks Rank #1 Strong Buys. They deem these tickers "Most Likely for Early Price Pops."
Since 1988, the full list has beaten the market more than 2X over with an average gain of +23.9% per year. So be sure to give these hand picked 7 your immediate attention.
See them now >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report