Investors are closely watching the upcoming earnings reports from Home Depot (HD) and Lowe's (LOW), set to release results next week. Home Depot is expected to report on Tuesday, November 17, with analysts forecasting earnings of $3.87 per share, up 3% year over year, and revenue of $42.72 billion. Lowe's will follow on Wednesday, November 18, with projections of a 7% revenue increase to $22.38 billion, though earnings are anticipated to decline over 6% to $2.86 per share.
Both companies will be scrutinized for updates on comparable-store sales, professional contractor demand, and full-year guidance. Home Depot's larger Pro business offers some resilience, while Lowe's is expanding its professional customer base to counter softer DIY spending. In terms of stock performance, Home Depot has outperformed Lowe's in 2026, with a year-to-date total return of roughly 4% compared to Lowe's nearly 4% decline.
Valuation-wise, Lowe's trades at 17X forward earnings, making it more attractive to value-oriented investors, while Home Depot's premium valuation of 22X is justified by its stronger professional contractor business. Dividend-wise, Home Depot offers a higher yield of nearly 2.7%, compared to Lowe's 2.2%. Lowe's, however, is a Dividend King with over 50 consecutive years of dividend increases.
Analysts suggest that while Home Depot's stability and higher dividend yield make it a compelling choice, Lowe's discounted valuation offers greater upside potential if housing demand rebounds. Both stocks currently hold a Zacks Rank #3 (Hold), advising caution before aggressive buying ahead of earnings.