Big Box Home Improvement Retailers Set to Report Earnings
The global health crisis has had a mixed impact on the retail sector. Some segments of the industry have seen sales increase as consumers adjust to the new normal while others are struggling as consumer preferences have changed. Retailers with a strong presence in traditional shopping malls have been hit especially hard while retailers with stand-alone stores have fared much better.
Obviously the sales are being impacted by the nature of the goods the companies sell as well. One segment that appears to be doing well is the home improvement group of retailers. With more and more people working from we are seeing a boom in housing numbers and I’m guessing we are seeing a boom in home improvement projects. Because we are spending more time at home, people are looking to change their living spaces, whether it means buying a new home or modifying their current home to include a home office.
Two of the biggest home improvement retailers, Home Depot (HD) and Lowe’s (LOW), are set to report earnings next week and both are expected to see solid earnings and revenue growth for the quarter. Home Depot’s consensus EPS estimate is $3.01 for the quarter and that is 19% higher than the company reported last year. Revenue is expected to increase by 16.4%.
Lowe’s is expected to do even better. The EPS estimate is $1.97 and that is 39.7% higher than the $1.41 the company reported in the third quarter of 2019. Revenue is expected to jump by 21.4%.
The sentiment indicators reflect what we see from the earnings estimates as well with higher expectations for Lowe’s than Home Depot. There are 33 analysts following Home Depot with 60.6% rating the stock as a “buy”. There are 31 analysts covering Lowe’s and 74.2% rate the stock as a “buy”. The short interest ratio for both stocks is below average, but Lowe’s is lower at 1.2 compared to 1.7 for Home Depot. What these indicators suggest is that optimism is running pretty high for Lowe’s ahead of the earnings report.
Turning our attention to Tickeron’s scorecard grades for the two stocks, we see a “strong buy” grade for Lowe’s and a “buy” rating for Home Depot. Something to remember about the scorecard grades from Tickeron is that they are based entirely on artificial intelligence and the statistics calculated by the platform—there isn’t any human opinion or bias in the calculations.
The entire comparison shows that the technical analysis is pretty even, but Home Depot actually does a little better on the fundamental side.
HD in upward trend: price expected to rise as it breaks its lower Bollinger Band on October 01, 2025
HD may jump back above the lower band and head toward the middle band. Traders may consider buying the stock or exploring call options. In of 30 cases where HD's price broke its lower Bollinger Band, its price rose further in the following month. The odds of a continued upward trend are .
Technical Analysis (Indicators)
Bullish Trend Analysis
The RSI Indicator points to a transition from a downward trend to an upward trend -- in cases where HD's RSI Oscillator exited the oversold zone, of 24 resulted in an increase in price. Tickeron's analysis proposes that the odds of a continued upward trend are .
The Momentum Indicator moved above the 0 level on October 21, 2025. You may want to consider a long position or call options on HD as a result. In of 82 past instances where the momentum indicator moved above 0, the stock continued to climb. The odds of a continued upward trend are .
The Moving Average Convergence Divergence (MACD) for HD just turned positive on October 20, 2025. Looking at past instances where HD's MACD turned positive, the stock continued to rise in of 50 cases over the following month. The odds of a continued upward trend are .
Following a 3-day Advance, the price is estimated to grow further. Considering data from situations where HD advanced for three days, in of 341 cases, the price rose further within the following month. The odds of a continued upward trend are .
Bearish Trend Analysis
The Stochastic Oscillator may be shifting from an upward trend to a downward trend. In of 66 cases where HD's Stochastic Oscillator exited the overbought zone, the price fell further within the following month. The odds of a continued downward trend are .
HD moved below its 50-day moving average on October 01, 2025 date and that indicates a change from an upward trend to a downward trend.
The 10-day moving average for HD crossed bearishly below the 50-day moving average on October 07, 2025. This indicates that the trend has shifted lower and could be considered a sell signal. In of 15 past instances when the 10-day crossed below the 50-day, the stock continued to move higher over the following month. The odds of a continued downward trend are .
Following a 3-day decline, the stock is projected to fall further. Considering past instances where HD declined for three days, the price rose further in of 62 cases within the following month. The odds of a continued downward trend are .
The Aroon Indicator for HD entered a downward trend on October 21, 2025. This could indicate a strong downward move is ahead for the stock. Traders may want to consider selling the stock or buying put options.
The Tickeron SMR rating for this company is (best 1 - 100 worst), indicating very strong sales and a profitable business model. SMR (Sales, Margin, Return on Equity) rating is based on comparative analysis of weighted Sales, Income Margin and Return on Equity values compared against S&P 500 index constituents. The weighted SMR value is a proprietary formula developed by Tickeron and represents an overall profitability measure for a stock.
The Tickeron Profit vs. Risk Rating rating for this company is (best 1 - 100 worst), indicating well-balanced risk and returns. The average Profit vs. Risk Rating rating for the industry is 76, placing this stock slightly better than average.
The Tickeron Valuation Rating of (best 1 - 100 worst) indicates that the company is fair valued in the industry. This rating compares market capitalization estimated by our proprietary formula with the current market capitalization. This rating is based on the following metrics, as compared to industry averages: HD's P/B Ratio (36.101) is very high in comparison to the industry average of (5.758). P/E Ratio (26.287) is within average values for comparable stocks, (70.082). HD's Projected Growth (PEG Ratio) (3.818) is slightly higher than the industry average of (1.668). Dividend Yield (0.024) settles around the average of (0.038) among similar stocks. HD's P/S Ratio (2.329) is slightly higher than the industry average of (1.024).
The Tickeron PE Growth Rating for this company is (best 1 - 100 worst), pointing to average earnings growth. The PE Growth rating is based on a comparative analysis of stock PE ratio increase over the last 12 months compared against S&P 500 index constituents.
The Tickeron Price Growth Rating for this company is (best 1 - 100 worst), indicating steady price growth. HD’s price grows at a higher rate over the last 12 months as compared to S&P 500 index constituents.
The Tickeron Seasonality Score of (best 1 - 100 worst) indicates that the company is significantly overvalued in the industry. The Tickeron Seasonality score describes the variance of predictable price changes around the same period every calendar year. These changes can be tied to a specific month, quarter, holiday or vacation period, as well as a meteorological or growing season.
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General Information
a retailer of assortment of building materials and home improvement products
Industry HomeImprovementChains
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