:max_bytes(150000):strip_icc()/Lowes-HomeDepot-9d65d27f8ae44461843b0a371a6405f6.jpg "Home Depot and Lowe’s Report Earnings This Week. Here’s How Much the Stocks Are Expected to Move")
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Key Takeaways
- Home Depot and Lowe’s are set to report earnings this week, with traders expecting sizable moves in the home improvement retailers’ shares.
- Both stocks have climbed to start the year, amid a broader rotation out of tech stocks in favor of consumer-focused companies.
Home Depot and Lowe’s are set to report earnings this week, with traders anticipating sizable swings in the home improvement retailers’ stocks following the results.
Home Depot is set to report earnings on Tuesday morning, with rival Lowe’s following Wednesday. Current options pricing suggests traders expect Home Depot (HD) stock could move up to 4% in either direction by the end of the week, while Lowe’s (LOW) could swing up to 5%.
For Home Depot, a shift of that size from Friday’s close could lift the stock above $398, its highest level since last September, or drag the stock down to $366. For Lowe’s, the move could mean setting a record high above $294 at the high end, or dropping as low as $266.
Both stocks have enjoyed a strong start to the year so far, with Home Depot gaining about 11% and Lowe’s up 16% for 2026, amid a broader rotation out of tech stocks in favor of consumer-focused companies.
Why This Matters to Investors
Results from Home Depot and Lowe’s could provide insights into the health of the American consumer, and the housing market. In recent quarters, the retailers have said many Americans are holding back on large do-it-yourself projects, and both companies are looking to professional contractors for growth.
UBS analysts recently wrote that they will be looking to comments from executives on the outlook for the home improvement market. The analysts said they see tax refunds, declining mortgage rates, and the Trump administration’s proposals on housing affordability as likely tailwinds for the sector this year.
Home Depot is expected to report adjusted earnings per share of $2.53 on a 4% year-over-year drop in revenue to $38.15 billion for the fourth quarter. Meanwhile, Lowe’s is projected to post adjusted EPS of $1.93 on a 10% jump in revenue to $20.37 billion.
Analysts tracked by Visible Alpha are largely bullish on both stocks, with a majority recommending buying the shares. The consensus price target of $418 for Home Depot would suggest about 9% upside, while the mean target for Lowe’s at $289 would imply a roughly 3% rise from Friday’s level.
