Home Depot and Lowe's Will Announce Earnings This Week. Here's What Analysts Predict for Stock Movement

Main Points

• Home Depot and Lowe's are both scheduled to announce their earnings this week, and investors are bracing for significant price fluctuations in these home improvement giants.
• Both companies have seen their share prices rise since the beginning of the year, as investors shift their focus from technology stocks to consumer-oriented businesses.

This week, Home Depot and Lowe's will release their latest earnings reports, and market participants are expecting notable volatility in their stock prices as a result.

Home Depot will unveil its financial results on Tuesday morning, followed by Lowe's on Wednesday. According to current options market data, Home Depot's (HD) shares could experience a move of up to 4% in either direction by week's end, while Lowe's (LOW) could see a swing of as much as 5%.

If Home Depot's stock shifts by that margin from Friday's closing price, it could surpass $398—its highest point since last September—or fall to $366. For Lowe's, a similar move could push the stock to a new record above $294 or drop it down to $266.

So far this year, both companies have performed strongly: Home Depot's shares have climbed approximately 11%, and Lowe's has advanced 16% in 2026. This growth comes amid a broader trend of investors moving away from tech stocks and favoring companies that cater to consumers.

Investor Insights

The upcoming earnings from Home Depot and Lowe's are expected to offer valuable clues about the state of the U.S. consumer and the housing sector. In recent quarters, both retailers have noted that many Americans are postponing major DIY projects, prompting the companies to focus more on serving professional contractors for future growth.

Analysts at UBS recently indicated they will be paying close attention to management commentary regarding the outlook for the home improvement industry. They believe factors such as tax refunds, falling mortgage rates, and new housing affordability initiatives from the Trump administration could provide positive momentum for the sector in the coming year.

For the fourth quarter, Home Depot is anticipated to report adjusted earnings per share of $2.53, with revenue expected to decline 4% year-over-year to $38.15 billion. In contrast, Lowe's is forecasted to deliver adjusted EPS of $1.93 and a 10% increase in revenue, reaching $20.37 billion.

According to Visible Alpha, most analysts remain optimistic about both stocks, with the majority recommending a buy. The average price target for Home Depot stands at $418, suggesting a potential 9% gain, while the consensus target for Lowe's is $289, indicating an estimated 3% upside from Friday's closing price.