Lowe’s Buy Upgrade Contrasts with Home Depot Earnings Decline Forecast
HD•Citi upgraded Lowe’s to Buy, citing resilient margin performance, but flagged softer US home improvement spending and subdued retail traffic. Analysts expect Home Depot to report a year-over-year earnings decline as comparable-store sales cool and operating margins come under pressure.
1. Citi Raises Lowe’s Rating
An analyst firm lifted Lowe’s rating to Buy, highlighting its stronger margin profile and inventory management. The upgrade comes as signs of cooling consumer demand in the home improvement sector emerge, with foot traffic and discretionary spending trending lower in recent months.
2. Earnings Outlook for Home Depot
Wall Street analysts now project Home Depot will post a year-over-year earnings decline in the upcoming quarter. The outlook reflects expectations of decelerating comparable-store sales and narrowing operating margins as consumer budgets tighten.
