Home Depot Vs. Lowe's Stock: Which is the Better Investment as Q4 Results Roll Out?

Group 1: Home Depot Q4 Results - Home Depot's Q4 sales reached $39.7 billion, a 14$34.78 billion, exceeding estimates of $39.14 billion [2] - The Q4 EPS was$3.13, beating expectations of $3.04 by 2.96$2.82 per share a year ago [3] - Home Depot has exceeded the Zacks EPS Consensus for 19 consecutive quarters since August 2020 [3] Group 2: Lowe's Q4 Expectations - Lowe's Q4 sales are estimated to have dipped 1% to $18.35 billion compared to$18.6 billion in the prior year quarter, while earnings are expected to rise 3% to $1.83 per share from$1.77 [5] - Lowe's has exceeded bottom line expectations for 22 consecutive quarters since August 2019 [5] - The Zacks ESP indicates Lowe's could surpass earnings expectations with a Q4 EPS estimate of $1.85, 1% above the Zacks Consensus [6] Group 3: Stock Performance & Valuation - Home Depot and Lowe's trade at forward earnings multiples of 24.4X and 18.9X, respectively [8] - Lowe's trades below the S&P 500's average of 22.5X forward earnings and at a discount to the Zacks Retail-Home Furnishings Industry average of 22.1X [9] - Home Depot's stock has gained +24% over the last three years, while Lowe's has gained +9%, both underperforming the S&P 500 [10] Group 4: Dividend Comparison - Home Depot offers a 2.35% annual dividend yield, while Lowe's yield is at 1.94%, both exceeding the S&P 500's average of 1.21% [12] - Home Depot's yield is above the industry average of 2.13% [12] Group 5: Investment Outlook - Both Home Depot and Lowe's stock hold a Zacks Rank 3 (Hold), suggesting potential rewards for long-term investors [15] - There may be better buying opportunities ahead amid recent market volatility and macroeconomic uncertainty [15]