Home Depot and Lowe’s: Will Lowe’s Catch Up to Home Depot in 2017?

Home Depot And Lowe’s: Will Lowe’s Catch Up To Home Depot In 2017?

Investors are closely watching Lowe’s performance as the company has closed the performance gap with Home Depot over the last several quarters. In 4Q, Lowe’s comparable store sales growth of 5.1% was just 70 basis points short of Home Depot’s 5.8% comparable store sales growth.

However, consensus estimates show that investors are still skeptical of Lowe’s ability to consistently catch up to Home Depot over the next year, as the comparable store sales gap is at 1.1% for the year.

HD LOW Home Depot Lowes Consensus Comparable Store Sales by Visible Alpha x

Discover insights hidden in stories that consensus does not tell. Request access to Visible Alpha.

Additionally, investors have not yet fully bought into Lowe’s margin targets for 2017, as analyst estimates currently have Lowe’s falling slightly short of their margin guidance. This compares to analysts’ expectations for Home Depot to slightly outperform their margin expansion targets for 2017.

HD LOW Home Depot Lowes Consensus Margin Estimates by Visible Alpha x


About Visible Alpha

Visible Alpha enhances the investment research process by extracting meaningful value from key sell-side assets, including analyst models, research reports and corporate access events through partnerships with the world’s premier investment research organizations. Our deep consensus data provides granular and timely insights into the sell-side view of companies, industries and peer groups. For more information, visit visiblealpha.com.