Here’s what Wall Street is saying about Home Depot, Lowe’s ahead of earnings

Home improvement retailers Home Depot (HD) and Lowe’s (LOW) are scheduled to report results of their second quarters before the market open on Tuesday, August 19, and Wednesday, August 20, respectively. Home Depot’s conference call is scheduled for 9:00 am EDT on Tuesday and Lowe’s will hold its quarterly call on Wednesday at 9:00 am EDT. What to watch for:

HOUSING MARKET COMMENTARY: Builder confidence for future sales expectations received a slight boost in July with the passage of the One Big Beautiful Bill Act but elevated interest rates and economic and policy uncertainty continue to act as headwinds for the housing sector. Builder confidence in the market for newly built single-family homes was 33 in July, up one point from June, according to the National Association of Home Builders/Wells Fargo Housing Market Index released on July 17. Builder sentiment has now been in negative territory for 15 consecutive months. “The passage of the One Big Beautiful Bill Act provided a number of important wins for households, home builders and small businesses,” said NAHB Chairman Buddy Hughes.”

OUTLOOK: In May, Home Depot backed its fiscal 2025 adjusted EPS view of down 2% from $15.24, with revenue up 2% and comparable sales up 1%. Analysts currently expect FY25 EPS of $15.01 on revenue of $164.35B. Stifel said Q2 trends have been “mixed,” but easing rate excitement has been driving outperformance in the shares over the past month and this strength has pushed relative valuation “back to levels we believe more appropriately values the medium-term prospects and long-term advantages.”

Lowe’s, meanwhile, also backed its guidance calling for FY25 adjusted EPS of $12.15-$12.40 on revenue of $83.5B-$84.5B. Comparable sales are expected to be flat to up 1% as compared to the prior year. Analysts currently expect FY25 EPS of $12.22 on revenue of $84.41B. At Lowe’s, Citi reduced second half of 2025 same-store-sales estimates ahead of the Q2 report to reflect a challenging do-it-yourself backdrop.

JULY IMPROVEMENT: Wells Fargo’s Pro survey suggests sales improved 100 basis points month over month in July, but 2025 outlooks moved lower and leading indicators remain soft. Improving weather and delayed spring demand translated to elevated exterior work in July, the firm says.

Meanwhile, Truist said the quarter should be solid for most companies under coverage, even though comparisons are about to become more difficult for most retailers and tariff risk remains. The firm continues to favor needs-based retailers and deep value providers, Truist added.

‘TACTICAL UNDERPERFORM’: Evercore ISI added Lowe’s to the firm’s “Tactical Underperform List” ahead of the company reporting Q2 results on Wednesday, August 20. While the firm thinks fiscal year guidance remains intact, the stock has gotten ahead of itself with shares up 15% over the last month, says the analyst.

SENTIMENT: Check out recent Media Buzz Sentiment for Home Depot and Lowe’s as measured by TipRanks.