Lowe’s (LOW) demonstrates relative stability amid broader retail headwinds, according to Stifel’s latest assessment, while Home Depot (HD) shows signs of strain. The divergence highlights shifting consumer behavior and operational performance between the two major home improvement retailers.
- Lowe’s (LOW) stock gained 1.2% over three weeks, while Home Depot (HD) declined 3.4%
- LOW’s same-store sales rose 2.8% in Q3, outpacing HD’s 1.3% increase
- Lowe’s online order volume grew 4.6% from November to December, compared to HD’s 1.9%
- Stifel highlights Lowe’s improved inventory management and digital engagement as key differentiators
- Investor sentiment is shifting, with observable reallocation toward LOW in recent institutional trades
- Divergent performance underscores evolving consumer preferences in the home improvement sector
Lowe’s (LOW) has maintained consistent performance in recent trading sessions, holding steady despite a broader downturn in the consumer discretionary sector. In contrast, Home Depot (HD) has experienced declining momentum, with analysts noting weakening traffic and softening sales trends in key markets. Stifel’s analysis attributes Lowe’s resilience to improved inventory management, stronger e-commerce integration, and a more targeted promotional strategy during the holiday season. The performance gap is quantifiable: over the past three weeks, LOW has posted a 1.2% gain in share price, while HD has declined 3.4%. Additionally, Lowe’s same-store sales growth in the third quarter reached 2.8%, outpacing Home Depot’s 1.3% increase. These figures suggest that Lowe’s is better positioned to absorb inflationary pressures and shifting demand patterns, particularly in the mid- to high-end home improvement segment. The divergence is particularly notable in the context of seasonal demand, where both retailers typically see a surge in activity. Lowe’s has reported a 4.6% increase in online order volume during the November-to-December period, while Home Depot’s digital sales rose just 1.9%. This indicates that Lowe’s customer engagement strategy, including targeted email campaigns and loyalty program enhancements, may be yielding stronger returns. Investors are reassessing the relative value of the two retailers, with institutional activity reflecting a modest reallocation toward LOW. The shift could signal a broader reassessment of big-box retail dynamics, especially as consumers prioritize value and convenience amid macroeconomic uncertainty.