Home Depot Edges Out Lowe's Despite Challenging Housing Market

The home improvement sector is facing challenges due to slow housing turnover and affordability pressures. Despite this, Home Depot (HD) has seen better performance than Lowe's (LOW), with its shares trading at a higher premium.

Home Depot's sales increased by 4.8% in the latest quarter, reaching $41.8 billion. Its adjusted earnings per share declined by 3.7%, however. In contrast, Lowe's sales grew by 10.3% to $23.1 billion, with its adjusted EPS increasing by 3.8%. Both companies' comparable sales rose by 0.6% year-over-year.

From a near-term momentum standpoint, Home Depot has the edge due to more stable earnings and sales revisions. Its Zacks Rank is also more favorable compared to Lowe's, which carries a Sell rating.