Home Improvement Stocks: Only One Retailer is a Buy for 2026

Home Depot (HD) stock has declined 11% year-to-date, while Lowe's (LOW) fell only 2.6%. Home Depot now expects adjusted earnings per share to decline 5% for fiscal 2025. Lowe's trades at a forward P/E below 19 times compared to Home Depot's 23 times valuation. Lowe's beat earnings expectations in the last four quarters and maintained its status as a Dividend King with 63 consecutive years of dividend increases.