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HD vs LOW
Which Stock Would AI Choose? Home Depot (HD) vs. Lowe's (LOW) Stock Comparison
Key Takeaways
- HD delivered stronger comparable sales growth in its latest quarter, while LOW reported more modest gains and trimmed its full-year outlook.
- Both retailers face the same core headwind: low housing turnover and soft do-it-yourself (DIY) discretionary demand.
- HD has leaned into its professional (Pro) and specialty-distribution business to offset weakness, while LOW is prioritizing its Pro, online, and home-services channels.
- On valuation, LOW trades at a lower forward price-to-earnings multiple than HD.
- Both stocks have pulled back notably over the past year, reflecting investor caution about the housing cycle.
Introduction
The Home Depot (HD) and Lowe's Companies (LOW) are the two dominant players in the U.S. home-improvement retail market, and a stock comparison between them is a natural starting point for investors assessing the sector. Because both companies operate in the same cyclical end market, their relative performance often hinges on execution, customer mix, and strategy rather than the broader economy alone. This comparison is especially relevant for traders and investors who want exposure to housing and renovation trends but must decide which operator offers the more compelling risk-reward profile in the current environment of soft DIY spending and constrained housing turnover.
HD Overview and Recent Performance
The Home Depot (HD), the world's largest home-improvement retailer, has shown resilient operating momentum in recent weeks despite a difficult housing backdrop. In its most recent reported quarter, sales rose 5.7% year over year to $47.86 billion, while comparable sales (comps) increased 1.7%. Adjusted earnings per share (EPS) advanced 5.1% to $4.92, topping analyst expectations. Growth has been driven by the Pro customer base, which outperformed DIY demand, alongside a fifth consecutive quarter of double-digit online sales growth.
However, the underlying mix remains uneven. Comparable customer transactions declined, meaning sales growth has leaned on higher average ticket sizes rather than increased store traffic. Larger discretionary projects remain constrained by housing affordability and historically low turnover, and margin expansion is limited by input-cost pressures. Shares have pulled back roughly 11% over the past month and are down about 27% over the past year, bringing the forward price-to-earnings multiple below its five-year median and resetting near-term expectations.
LOW Overview and Recent Performance
Lowe's Companies (LOW), a Fortune 100 home-improvement retailer and a dividend aristocrat, reported second-quarter sales of approximately $26.0 billion, with comparable sales up a modest 0.2%. Adjusted EPS rose 1.6% to $4.40, supported by strength in Pro and home services, while online sales climbed 15.7%. Persistent pressure on discretionary DIY spending, however, continued to weigh on results.
Reflecting that softer demand, Lowe's lowered its fiscal 2026 outlook, guiding to roughly flat comparable sales and total sales of about $92 billion, at the lower end of its prior range. Comparable transactions also declined in the quarter, and integration costs tied to recent acquisitions pressured margins. Like its larger rival, Lowe's has seen its shares fall substantially over the past year, and the stock trades at a trailing price-to-earnings multiple near the lower end of its historical range. Management continues to emphasize cost discipline, productivity initiatives, and AI-driven tools such as its "Mylow" virtual assistant as longer-term levers.
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Head-to-Head Comparison
A direct stock comparison of HD and LOW reveals meaningful contrasts beneath a shared macro narrative. Home Depot is the larger, Pro-heavy operator, and its recent comparable-sales growth of 1.7% outpaced Lowe's 0.2%, aided by its expanding specialty-distribution platform. Lowe's, by contrast, generates a greater share of its business from the DIY customer, which is exactly the segment under the most pressure right now.
On growth drivers, HD is investing heavily in Pro distribution and cross-selling, while LOW is leaning on home services, online momentum, and AI adoption. On valuation, LOW trades at a lower forward multiple, which some investors interpret as a value tilt, though it also reflects more cautious near-term guidance. Risk factors are similar for both: housing affordability, soft traffic, and input-cost and tariff-related margin pressure. The key trade-off is momentum versus valuation—Home Depot has shown stronger recent comparable-sales momentum, while Lowe's carries a lower multiple and a higher dividend yield.
Tickeron AI Verdict
Based on observable trend consistency, relative momentum, and near-term catalysts, Tickeron's AI would likely show a modest preference for HD in the current environment. Its stronger comparable-sales growth, outperforming Pro segment, and accelerating digital sales suggest more consistent operational momentum, which algorithmic trend models tend to reward. That said, LOW's lower valuation and defensive dividend characteristics could appeal to bots tuned for stability and mean-reversion rather than momentum. The verdict is therefore probabilistic rather than definitive: relative positioning currently tilts toward Home Depot on trend strength, while Lowe's presents a comparatively lower-multiple, higher-yield alternative that may be favored under different market regimes.
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 StrongBuy.
HD | LOW | ||
|---|---|---|---|
OUTLOOK RATING 1..100 | 53 | 54 | |
VALUATION overvalued / fair valued / undervalued 1..100 | 79 Overvalued | 5 Undervalued | |
PROFIT vs RISK RATING 1..100 | 100 | 100 | |
SMR RATING 1..100 | 14 | 6 | |
PRICE GROWTH RATING 1..100 | 64 | 64 | |
P/E GROWTH RATING 1..100 | 71 | 68 | |
SEASONALITY SCORE 1..100 | 50 | 50 |
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 (5) in the Home Improvement Chains industry is significantly better than the same rating for HD (79). This means that LOW’s stock grew significantly faster than HD’s over the last 12 months.
LOW's Profit vs Risk Rating (100) in the Home Improvement Chains industry is in the same range as HD (100). This means that LOW’s stock grew similarly to HD’s over the last 12 months.
LOW's SMR Rating (6) in the Home Improvement Chains industry is in the same range as HD (14). This means that LOW’s stock grew similarly to HD’s over the last 12 months.
LOW's Price Growth Rating (64) in the Home Improvement Chains industry is in the same range as HD (64). This means that LOW’s stock grew similarly to HD’s over the last 12 months.
LOW's P/E Growth Rating (68) in the Home Improvement Chains industry is in the same range as HD (71). This means that LOW’s stock grew similarly to HD’s over the last 12 months.
| HD | LOW | |
|---|---|---|
| RSI ODDS (%) | 2 days ago 66% | 2 days ago 64% |
| Stochastic ODDS (%) | N/A | 2 days ago 56% |
| Momentum ODDS (%) | N/A | N/A |
| MACD ODDS (%) | N/A | N/A |
| TrendWeek ODDS (%) | 2 days ago 56% | 2 days ago 61% |
| TrendMonth ODDS (%) | 2 days ago 58% | 2 days ago 62% |
| Advances ODDS (%) | 19 days ago 65% | 19 days ago 59% |
| Declines ODDS (%) | 2 days ago 59% | 2 days ago 60% |
| BollingerBands ODDS (%) | 2 days ago 75% | 2 days ago 70% |
| Aroon ODDS (%) | 2 days ago 46% | 2 days ago 66% |
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 overvalued. 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 while LOW’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 3 TA indicator(s) are bullish while LOW’s TA Score has 4 bullish TA indicator(s).
- HD’s TA Score: 3 bullish, 2 bearish.
- LOW’s TA Score: 4 bullish, 3 bearish.
Price Growth
HD (@Home Improvement Chains) experienced а -3.33% price change this week, while LOW (@Home Improvement Chains) price change was -3.24% for the same time period.
The average weekly price growth across all stocks in the @Home Improvement Chains industry was -2.38%. For the same industry, the average monthly price growth was -8.27%, and the average quarterly price growth was -7.98%.
Reported Earning Dates
HD is expected to report earnings on Nov 17, 2026.
LOW is expected to report earnings on Nov 18, 2026.
Industries' Descriptions
@Home Improvement Chains (-2.38% 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.
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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.