Lowe's Seen Outpacing Home Depot With 9% Q2 Sales Growth at 18 P/E
Updated
Updated · Yahoo Finance · Aug 15
Lowe's Seen Outpacing Home Depot With 9% Q2 Sales Growth at 18 P/E
3 articles · Updated · Yahoo Finance · Aug 15
Summary
Lowe's is favored ahead of Q2 2026 earnings because analysts expect about 9% net sales growth, more than double Home Depot's projected 4%.
That edge follows a stronger Q1, when Lowe's lifted net sales 11% versus Home Depot's 5%, helped by supply-chain upgrades, better store layouts and tighter inventory management.
Valuation strengthens the case: Lowe's trades at roughly 18 times earnings, well below Home Depot's 24, suggesting investors pay less for faster expected growth.
Home Depot still offers the richer current income — a $9.32 annual dividend yielding 2.7% versus Lowe's $5.00 and 2.2% — but Lowe's most recent dividend increase topped 4.2%, ahead of Home Depot's 1.2%.
Both chains have raised dividends for 17 straight years and dominate a slower-growing U.S. home-improvement market, making the near-term choice hinge more on growth and price than on income alone.