Lowe’s vs. Home Depot: Picking the Stronger Home-Improvement Stock in a Weak Market

On valuation, Lowe’s appears better positioned for a recovery, with a 17.0x earnings multiple versus Home Depot’s 22.0x and a smaller negative gap to fair value. Home Depot, however, currently has the stronger operating trend, as its comparable sales rose 1.7% versus Lowe’s 0.2%.

The Valuation Discount Has Context

The rebound case for Lowe’s Companies is primarily built on valuation rather than on recent business performance.

As of 3:59 PM EDT on September 8, 2026, Lowe’s shares were priced at $200.80, a decline of 25.36% over the prior year.

Its price-to-earnings multiple stood at 17.0x as of July 31, 2026.

The estimated fair value was $183.61 as of 5:45 AM EDT on September 9, 2026, implying roughly 8.6% downside from the current share price.

Revenue recovered to $86.29 billion in the fiscal year ended January 30, 2026, up from $83.67 billion in the prior year.

Levered free cash flow remained resilient at $7.65 billion for the fiscal year ended January 31, 2026.

That leaves more room for a sentiment-driven rebound if housing turnover, remodeling demand, or interest rates improve. Still, Lowe’s recently trimmed its guidance to the low end of its range, and its comparable sales also missed estimates. This commentary was first published August 18, 2026.

Home Depot Carries the Momentum

The operating picture currently favors Home Depot.

Comparable sales grew 1.7% in the second quarter of 2026, compared with 0.2% at Lowe’s.

Revenue reached $164.68 billion for the fiscal year ended February 1, 2026.

Its price-to-earnings multiple was higher, at 22.0x, as of July 31, 2026.

Fair value was estimated at $280.01 as of September 9, 2026, implying approximately 10.7% downside from the prevailing market price.

Free cash flow fell to $12.65 billion in the fiscal year ended January 31, 2026, from $16.32 billion in the prior fiscal year ended January 31, 2025.

Home Depot maintained its fiscal 2026 comparable-sales guidance and also expanded nationwide three-hour delivery, a move that supports professional customers and urgent project purchases. The original report was published August 17, 2026.

Weighing the Rebounds

All market prices are quoted as of September 8, 2026, at 3:59 PM EDT, while fundamental valuation data uses the dates listed above for each metric.

Lowe’s offers the cleaner rebound setup, not the cleaner business momentum. Its lower multiple and already depressed expectations could amplify any improvement. Yet the latest evidence shows Home Depot winning the current demand battle, especially among professional customers.

The central risk is that Lowe’s cheapness reflects a prolonged recovery delay. The key opportunity is that even a modest sales stabilization could have a larger effect on Lowe’s valuation than on Home Depot’s.

On the Pro+ plan, historical data is limited to a 10-year lookback window.

This article was produced with the assistance of artificial intelligence and was reviewed by an editor. Please refer to our Terms & Conditions for further details.