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HD vs LOW
Which Stock Would AI Choose? The Home Depot (HD) vs. Lowe's Companies (LOW) Stock Comparison
Key Takeaways
- The Home Depot (HD) and Lowe's Companies (LOW) operate in the same home improvement retail sector, with HD holding a larger market share and store footprint while LOW focuses on operational agility and pro customer growth.
- Both companies reported comparable sales growth of approximately 0.6% in their most recent fiscal first quarters, reflecting cautious consumer spending amid broader economic conditions.
- Recent market activity shows both stocks experiencing downward pressure, with HD and LOW declining more than the broader market in early July trading sessions.
- HD has emphasized expansion in pro services and international military delivery channels, while LOW has highlighted strong online sales growth and acquisitions supporting its professional segment.
- Valuation metrics indicate LOW trading at a lower forward price-to-earnings multiple compared to HD, presenting a potential trade-off between growth expectations and current pricing.
- Sector exposure remains tied to housing market trends and discretionary spending, with both firms reaffirming full-year 2026 guidance following first-quarter results.
Introduction
The Home Depot (HD) and Lowe's Companies (LOW) represent the two dominant players in the U.S. home improvement retail industry. Investors and traders often compare these stocks to assess relative positioning within a cyclical sector influenced by housing markets, consumer confidence, and interest rates. This analysis examines their business models, recent performance trends, and market dynamics, providing objective context for those evaluating exposure to home improvement equities. The comparison is particularly relevant for portfolio managers seeking sector balance and for active traders monitoring momentum shifts in consumer discretionary names.
HD Overview and Recent Performance
The Home Depot (HD) is the world's largest home improvement retailer, operating a network of stores focused on both do-it-yourself consumers and professional contractors. In recent weeks, the stock has faced selling pressure amid broader market volatility, closing at approximately $336 on July 8 after a decline of more than 2.5%. Recent market activity reflects concerns over core retail segment performance, even as the company expands its pro-focused distribution capabilities. Developments such as enhanced delivery options for overseas military families have been noted, alongside reaffirmation of fiscal 2026 sales growth guidance in the 2.5% to 4.5% range following first-quarter results that showed modest comparable sales increases.
LOW Overview and Recent Performance
Lowe's Companies (LOW) operates as a leading home improvement retailer with a significant presence across North America, emphasizing both retail and professional (pro) customer segments. In recent market activity, the stock declined approximately 3.6% to close near $213 on July 8, underperforming the broader indices. First-quarter results highlighted comparable sales growth of 0.6%, supported by online sales expansion and strength in appliances and home services. The company affirmed its full-year 2026 outlook, projecting total sales between $92 billion and $94 billion, while integrating recent acquisitions to bolster its professional offerings amid ongoing housing market dynamics.
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Head-to-Head Comparison
In business model terms, The Home Depot (HD) maintains a larger overall scale and store base, providing broader geographic reach, whereas Lowe's Companies (LOW) has pursued targeted acquisitions and digital enhancements to strengthen its pro segment. Recent momentum shows both equities under pressure, though LOW has recorded relatively resilient year-to-date performance in certain periods compared with HD. Risk factors for each include sensitivity to housing turnover and discretionary spending, with HD carrying higher absolute valuation multiples. Sector exposure is identical, yet LOW's lower forward price-to-earnings ratio may appeal to value-oriented participants seeking potential upside in a recovery scenario, while HD's dividend profile offers a different income consideration. Market sentiment remains cautious for both amid macroeconomic uncertainty.
Tickeron AI Verdict
Based on observable factors including trend consistency and relative stability in recent market activity, Tickeron’s AI models currently assign a modest probabilistic edge to Lowe's Companies (LOW) due to its positioning at comparatively attractive valuations and demonstrated online growth catalysts. This assessment remains subject to ongoing shifts in broader market conditions and earnings trajectories ahead of the next reporting cycle.
Disclaimer
The information on this webpage is provided for general informational and educational purposes only and is not intended as investment advice, a recommendation to purchase or sell any security, or an offer or solicitation related to investments. It does not consider your personal financial situation, goals, or risk profile, and all investing carries inherent risks, including the possibility of losing your entire investment. For more details, please review our full disclaimer.
To compare these two companies we present long-term analysis, their fundamental ratings and make comparative short-term technical analysis which are presented below. The conclusion is HD is a StrongBuy and LOW is a Buy.
Long-Term Analysis
It is best to consider a long-term outlook for a ticker by using Fundamental Analysis (FA) ratings. The rating of 1 to 100, where 1 is best and 100 is worst, is divided into thirds. The first third (a green rating of 1-33) indicates that the ticker is undervalued; the second third (a grey number between 34 and 66) means that the ticker is valued fairly; and the last third (red number of 67 to 100) reflects that the ticker is undervalued. We use an FA Score to show how many ratings show the ticker to be undervalued (green) or overvalued (red).
HD’s FA Score shows that 1 FA rating(s) are green whileLOW’s FA Score has 2 green FA rating(s).
- HD’s FA Score: 1 green, 4 red.
- LOW’s FA Score: 2 green, 3 red.
Short-Term Analysis
It is best to consider a short-term outlook for a ticker by using Technical Analysis (TA) indicators. We use Odds of Success as the percentage of outcomes which confirm successful trade signals in the past.
If the Odds of Success (the likelihood of the continuation of a trend) for each indicator are greater than 50%, then the generated signal is confirmed. A green percentage from 90% to 51% indicates that the ticker is in a bullish trend. A red percentage from 90% - 51% indicates that the ticker is in a bearish trend. All grey percentages are below 50% and are considered not to confirm the trend signal.
HD’s TA Score shows that 5 TA indicator(s) are bullish while LOW’s TA Score has 5 bullish TA indicator(s).
- HD’s TA Score: 5 bullish, 5 bearish.
- LOW’s TA Score: 5 bullish, 4 bearish.
Price Growth
HD (@Home Improvement Chains) experienced а -4.17% price change this week, while LOW (@Home Improvement Chains) price change was -4.09% for the same time period.
The average weekly price growth across all stocks in the @Home Improvement Chains industry was -3.92%. For the same industry, the average monthly price growth was +6.24%, and the average quarterly price growth was -20.29%.
Reported Earning Dates
HD is expected to report earnings on Aug 18, 2026.
LOW is expected to report earnings on Aug 19, 2026.
Industries' Descriptions
@Home Improvement Chains (-3.92% weekly)The home improvement chains industry sells home improvement merchandise and do-it-yourself repair and building goods. Customers include individual contractors or construction managers on one hand; on the other hand, there are retail consumers who’d either buy raw materials/items from the store to do a project on their own, or pay extra for installation services. Products sold include fencing supplies, lumber materials, hardware, lighting fixtures, plumbing supplies, home decor items, bathroom remodel items, roofing materials, tools and wallboard to name a few. The Home Depot Inc., Lowe’s Companies, Inc. and Floor & Decor Holdings, Inc. are some of the biggest home improvement retailing companies in the U.S. Allowing all types of customers the flexibility to choose or buy products both offline and online and then having the products shipped to the respective sites/homes are some of the potential drivers of a home improvement chain’s popularity. Many big-box home improvement chains are looking to expand their overseas presence. Supply-chain efficiency and distribution management are some of the key ingredients to grow/make profit in this industry.
| HD | LOW | HD / LOW | |
| Capitalization | 344B | 119B | 289% |
| EBITDA | 25.1B | 12.6B | 199% |
| Gain YTD | -0.902 | -10.917 | 8% |
| P/E Ratio | 23.88 | 17.99 | 133% |
| Revenue | 167B | 88.4B | 189% |
| Total Cash | 1.6B | 786M | 204% |
| Total Debt | 63.2B | 42.5B | 149% |
HD | LOW | ||
|---|---|---|---|
OUTLOOK RATING 1..100 | 31 | 18 | |
VALUATION overvalued / fair valued / undervalued 1..100 | 71 Overvalued | 3 Undervalued | |
PROFIT vs RISK RATING 1..100 | 70 | 70 | |
SMR RATING 1..100 | 11 | 4 | |
PRICE GROWTH RATING 1..100 | 50 | 58 | |
P/E GROWTH RATING 1..100 | 55 | 53 | |
SEASONALITY SCORE 1..100 | n/a | n/a |
Tickeron ratings are formulated such that a rating of 1 designates the most successful stocks in a given industry, while a rating of 100 points to the least successful stocks for that industry.
LOW's Valuation (3) in the Home Improvement Chains industry is significantly better than the same rating for HD (71). This means that LOW’s stock grew significantly faster than HD’s over the last 12 months.
LOW's Profit vs Risk Rating (70) in the Home Improvement Chains industry is in the same range as HD (70). This means that LOW’s stock grew similarly to HD’s over the last 12 months.
LOW's SMR Rating (4) in the Home Improvement Chains industry is in the same range as HD (11). This means that LOW’s stock grew similarly to HD’s over the last 12 months.
HD's Price Growth Rating (50) in the Home Improvement Chains industry is in the same range as LOW (58). This means that HD’s stock grew similarly to LOW’s over the last 12 months.
LOW's P/E Growth Rating (53) in the Home Improvement Chains industry is in the same range as HD (55). This means that LOW’s stock grew similarly to HD’s over the last 12 months.
| HD | LOW | |
|---|---|---|
| RSI ODDS (%) | 2 days ago 51% | 3 days ago 52% |
| Stochastic ODDS (%) | 2 days ago 53% | 2 days ago 62% |
| Momentum ODDS (%) | 2 days ago 70% | 2 days ago 65% |
| MACD ODDS (%) | 2 days ago 60% | 2 days ago 60% |
| TrendWeek ODDS (%) | 2 days ago 54% | 2 days ago 59% |
| TrendMonth ODDS (%) | 2 days ago 60% | 2 days ago 60% |
| Advances ODDS (%) | 10 days ago 64% | 8 days ago 60% |
| Declines ODDS (%) | 2 days ago 57% | 2 days ago 59% |
| BollingerBands ODDS (%) | 2 days ago 44% | N/A |
| Aroon ODDS (%) | 2 days ago 56% | 2 days ago 55% |
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LOW and
Correlation & Price change
A.I.dvisor indicates that over the last year, LOW has been closely correlated with HD. These tickers have moved in lockstep 88% of the time. This A.I.-generated data suggests there is a high statistical probability that if LOW jumps, then HD could also see price increases.