Home Depot's $22 Billion Strategy to Enhance Professional Sales Unveils a Hidden Gem

Written by Emily J. Thompson, Senior Investment Analyst

LOW+0.19%

HD+0.27%

GMS%

Source: CNBC

Updated: Sep 02 2025

0mins

Source: CNBC

Reflect Roofing's Growth: California-based Reflect Roofing is leveraging a $50,000 trade credit from SRS Distribution to scale its business, benefiting from SRS's user-friendly services and Home Depot's acquisition of SRS, which enhances trade credit options for contractors.
Home Depot's Strategic Focus on Pros: Home Depot is expanding its focus on professional contractors through trade credit and acquisitions like SRS and GMS, aiming to capture a significant share of the $250 billion market for pro customers, which is expected to drive substantial revenue growth in the coming years.

LOW

$277.55+Infinity%1D

Analyst Views on LOW

Wall Street analysts forecast LOW stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for LOW is 279.09 USD with a low forecast of 250.00 USD and a high forecast of 320.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.

23 Analyst Rating

16 Buy

7 Hold

0 Sell

Moderate Buy

Current: 277.010

Low

250.00

Averages

279.09

High

320.00

Current: 277.010

Low

250.00

Averages

279.09

High

320.00

Barclays

Seth Sigman

Equal Weight -> Overweight

upgrade

$259 -> $285

Al Analysis

2026-01-07

Reason

Barclays

Seth Sigman

Price Target

$259 -> $285

Al Analysis

2026-01-07

upgrade

Equal Weight -> Overweight

Reason

Barclays analyst Seth Sigman upgraded Lowe's to Overweight from Equal Weight with a price target of $285, up from $259. The firm upgraded the shares as part of its broadlines, hardlines and food retail outlook for 2026. The analyst expects improvements in discretionary goods demand, especially among mid- and high-income consumers who will benefit from upcoming tax changes. Value-oriented retailers should continue to gain from ongoing low-income pressures, the analyst tells investors in a research note. On Lowe's, Barclays sees a "relatively attractive valuation." The upgrade reflects improvements in the company's do-it-yourself and pro business unit as well as potential upside from housing and pent-up demand, the firm contends.

Barclays

Equal Weight -> Overweight

upgrade

$285

2026-01-07

Reason

Barclays

Price Target

$285

2026-01-07

upgrade

Equal Weight -> Overweight

Reason

Barclays upgraded Lowe's to Overweight from Equal Weight with a $285 price target.

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Truist

Scot Ciccarelli

Buy

maintain

$256 -> $269

2025-12-17

Reason

Truist

Scot Ciccarelli

Price Target

$256 -> $269

2025-12-17

maintain

Buy

Reason

Truist analyst Scot Ciccarelli raised the firm's price target on Lowe's to $269 from $256 and keeps a Buy rating on the shares as part of a broader research note previewing 2026 for Hardlines/Broadlines Consumer names. With some slower consumer trends in the second half of FY25 consumers will remain choiceful in their shopping patterns, with a continued focus on "Value", the analyst tells investors in a research note. For the company, Truist notes that with over $35T of home equity essentially sitting on the sidelines and recent rate cuts, homeowners have a tremendous amount of "dry powder" to reinvest in the household's single biggest asset, adding that as long as existing home supply remains lean and home prices are flat-to-up, the firm remains bullish on the home improvement space.

JPMorgan

Overweight

maintain

$275 -> $300

2025-11-20

Reason

JPMorgan

Price Target

$275 -> $300

2025-11-20

maintain

Overweight

Reason

JPMorgan raised the firm's price target on Lowe's to $300 from $275 and keeps an Overweight rating on the shares. The firm views the company's Q3 report as :better than feared." Lowe's' pro share gains and improvement in certain big ticket categories make JPMorgan more positive that the company can keep the comp gap closer to Home Depot in 2026 despite a more remodel-oriented assortment, the analyst tells investors in a research note.

About LOW

Lowe's Companies, Inc. is a home improvement company. The Company offers a complete line of products for construction, maintenance, repair, remodeling, and decorating. It offers home improvement products in various categories, including appliances, seasonal and outdoor living, lumber, lawn and garden, kitchens and bath, hardware, building materials, millwork, paint, rough plumbing, tools, electrical, flooring, and decor. It is focused on offering a wide selection of national brand-name merchandise complemented by its selection of private brands. Its services include installed sales and Lowe's Protection Plans and Repair Services. The Company offers installation services through independent contractors in many of its product categories. It offers extended protection plans for certain products within the appliances, kitchens and bath, decor, millwork, rough plumbing, electrical, seasonal and outdoor living, tools, and hardware categories. It operates over 1,700 home improvement stores.

About the author

Emily J. Thompson

Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.