Lowe's is expected to post same-store sales growth of 11.7% when its reports its May-July quarter results, while Home Depot, scheduled to report on Tuesday, is expected to post a 10.2% rise. "Lowe's should outperform Home Depot handily," Wedbush Securities analyst Seth Basham said,
We're expecting Lowe's to beat estimates, but the one challenge they have against Home Depot is their margins. Their sales are coming through, but they need better margins to compete.