Home Depot 'Likely To Outcomp' Lowe's In Q4, Analyst Says As Home Improvement Battle Heads Toward Earnings

Group 1: Company Performance - Home Depot is expected to outperform Lowe's in the fourth quarter due to stabilizing consumer trends and advanced technology adoption [1] - Analysts predict moderate same-store sales growth for both companies in 2025, with challenges from larger-ticket items easing [2] Group 2: Technological Advancements - Home Depot is enhancing operational efficiency through technology, particularly AI and computer vision for inventory management [3] Group 3: Strategic Acquisitions - The acquisition of SRS Distribution is a strategic win for Home Depot, improving vendor relationships and expanding product offerings in roofing, landscape, and pool supplies [4] - SRS is projected to contribute approximately 75 basis points to comparable sales when it enters the comp base in mid-2025 [5] Group 4: Market Dynamics - Home Depot's greater exposure to the West Coast, where home sales are rebounding, provides a competitive advantage over Lowe's [5] - The company is benefiting from storm recovery dynamics, particularly in regions like Florida [5] Group 5: Financial Outlook - Home Depot's fundamentals are improving post-COVID disruptions, with a projected valuation peak of 30 times earnings [6]