Home Depot's push into HVAC and professional contractor services is drawing investor attention as a potential catalyst that could reshape its competitive standing against Lowe's. The company recently rolled out AI-powered tools for Pro Xtra members, including Material List Builder and an expanded Pro digital workspace, aiming to simplify complex job planning and support higher-value projects. Analysts project Home Depot could reach $187.2 billion in revenue and $17.3 billion in earnings by 2029, implying 4.0% annual revenue growth and a $3.3 billion earnings increase from the current $14.0 billion. However, concerns persist over operating margin pressure and elevated capital spending, with community fair value estimates clustering between $351 and $370, suggesting limited upside from the current price.
The Home Depot IncHome Depot's rollout of AI-powered tools for Pro Xtra members and expansion into HVAC and pro services could drive higher-value projects and revenue growth.
Lowe's Companies IncHome Depot's pro services expansion and AI tools may intensify competition and pressure Lowe's market share.