Home Depot trades at 22.3 times earnings, above Lowe's at 16.7 times and Amazon but below Walmart and Costco. Over its latest four quarters, Home Depot's 12.4% operating margin beats Lowe's 11.4%, yet its sales grew 2.5% versus Lowe's 8.2%. Its twelve-month operating margin is the lowest in ten years, as a $685 million tariff refund in the latest quarter was largely offset by rising fuel, energy and input costs and a product mix shift. Management held its fiscal 2026 forecast of 2.5% to 4.5% sales growth and a 12.4% to 12.6% operating margin. The article says the share price appears to assume Home Depot keeps its margin lead while sales at its own stores grow faster, and it flags comparable sales growth as the figure to check when the company reports again in November 2026.
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