Home Improvement Stocks: Only One Retailer is a Buy for 2026
AI Summary1 min read
TL;DR
Home Depot's stock and earnings outlook are weaker, while Lowe's offers better value, consistent earnings beats, and a strong dividend history, making it the preferred home improvement stock for 2026.
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Lowe's CompaniesThe Home Depot
Home Depot (HD) stock has declined 11% year-to-date, while Lowe's (LOW) fell only 2.6%. Home Depot now expects adjusted earnings per share to decline 5% for fiscal 2025. Lowe's trades at a forward P/E below 19 times compared to Home Depot's 23 times valuation. Lowe's beat earnings expectations in the last four quarters and maintained its status as a Dividend King with 63 consecutive years of dividend increases.
