Stifel Cuts Ratings on Lowe's and Home Depot Ahead of Earnings

By EC Assets · Published 13 November 2026

Stifel adjusted its ratings across major home improvement retailers as industry conditions show signs of pressure. The brokerage lowered its rating on Lowe's to Sell and maintained a cautious stance on Home Depot ahead of their scheduled earnings releases. The investment firm also cut its recommendation on Home Depot to Hold from Buy. The rating downgrades follow a weakening outlook across the broader home improvement sector. Analysts pointed to signs that the category is deteriorating compared to last year. Stifel indicated that the industry faces a delayed recovery alongside a standard seasonal slowdown. Home Depot received the cut to Hold amid these deteriorating conditions and the seasonal slowdown. The brokerage noted that Lowe's held steady while Home Depot stumbled during the recent period. However, broader sector concerns prompted Stifel to lower Lowe's to Sell while remaining on the sidelines for both retailers. The home improvement industry is confronting a seasonal deceleration in demand, compounded by weakening consumer demand across the retail category. Market indications show performance in the segment is falling behind levels recorded in the prior year. This article is intended for informational purposes only. It does not constitute investment advice.