Home Depot and Lowe’s are both preparing to release their Q2 earnings reports amid ongoing challenges in the housing market. Home Depot is expecting approximately 5% sales growth and stable earnings per share (EPS) revisions, while Lowe’s anticipates a 9% sales increase but a 2.5% decline in earnings year-over-year.
In their latest results, Home Depot reported sales of $41.8 billion, up 4.8%, with adjusted EPS at $3.43, reflecting a 3.7% decline. Meanwhile, Lowe’s posted sales of $23.1 billion, an increase of 10.3%, and an adjusted EPS of $3.03, which is up 3.8%. Despite these figures, Lowe’s contention with negative revisions has led to a Zacks Rank of #4 (Sell), compared to Home Depot’s #3 (Hold).
Currently, Home Depot shares trade at a forward 12-month multiple of 21.7, while Lowe’s trades at 16.9, indicating a significant valuation disparity between the two companies as they navigate a challenging economic landscape.
5 Stocks Our Experts Predict Could Double In the Next Year
By submitting your email, you'll also get a free pivot & flow membership. A free daily market overview. You can unsubscribe at any time.
