How Lowe’s stock has trounced Home Depot’s — and what may lie ahead

MarketWatch

by Philip van Doorn

February 23, 2026

AI-Generated Deep Dive Summary

Lowe’s stock has significantly outperformed Home Depot in recent years, capturing investor attention as both companies prepare to release their quarterly results. With similar business models in the hardware and home-furnishings industry, Lowe’s and Home Depot provide a unique opportunity for investors to compare their operational efficiency, stock returns, and growth prospects. While Home Depot is expected to report its fiscal 2025 fourth-quarter earnings earlier in the week, Lowe’s will follow suit with its own update. This divergence in reporting schedules adds an extra layer of intrigue as investors await insights into how each company has fared during a challenging economic period. The performance disparity between Lowe’s and Home Depot can be attributed to several factors, including strategic decisions, market positioning, and operational execution. Over the past few years, Lowe’s has focused on initiatives such as store remodels, digital transformation, and supply chain improvements, which have contributed to its stock outpacing Home Depot’s. Meanwhile, Home Depot has faced headwinds, including competition from smaller retailers and shifts in consumer spending patterns. These dynamics highlight the importance of adaptability and innovation in the retail sector. For investors, the upcoming earnings reports will be a critical checkpoint to assess whether Lowe’s momentum continues or if Home Depot can reclaim its competitive edge. The results could also shed light on broader trends in the home improvement market, such as consumer demand for DIY projects, housing market activity, and economic resilience. Additionally, analysts will likely parse the companies’ guidance for 2026, which will provide clues about their growth strategies and financial health. This comparison matters because it offers insights into the strengths and vulnerabilities of two major players in the retail industry. For finance enthusiasts, understanding the factors driving Lowe’s superior performance—and whether Home Depot can turn things around—provides valuable lessons on investing in similar industries. As both companies navigate an evolving market landscape, their quarterly updates will be a key event for investors seeking to align their portfolios with the latest trends and opportunities.

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Originally published on MarketWatch on 2/23/2026