HD vs LULU: Which Is the Better Buy?
Side-by-side comparison of The Home Depot, Inc. and Lululemon Athletica Inc. — fair value, conviction, valuation metrics, and QuantHub research signals.
Updated 2026-05-04.
The Home Depot, Inc. · Consumer Cyclical
$337.34
+12.1% upside to fair value
Med Conviction
Grade B
VS
Lululemon Athletica Inc. · Consumer Cyclical
$128.98
+307.7% upside to fair value
Grade C
QuantHub Verdict
LULU has more upside to fair value
(+307.7%).
LULU trades at a lower forward P/E
(9.7x).
These are model outputs — not personalized investment advice.
See all research →
Valuation & Fundamentals
| Metric |
HD |
LULU |
| Current Price |
$337.34 |
$128.98 |
| Fair Value Estimate |
$378.00 |
$525.85 |
| Upside to Fair Value |
+12.1%
|
+307.7%
|
| Market Cap |
$336.0B |
$15.1B |
| Forward P/E |
23.0x
|
9.7x
|
| EV / EBITDA |
18.1x
|
5.6x
|
| Price / Sales |
2.3x
|
1.4x
|
| Price / FCF |
29.7x
|
16.4x
|
| Revenue Growth YoY |
+3.2%
|
+0.8%
|
| Gross Margin |
33.3%
|
56.6%
|
| Operating Margin |
12.7%
|
19.8%
|
| Return on Equity |
110.5%
|
34.8%
|
| Dividend Yield |
2.44% |
0% |
| FCF Yield |
3.37%
|
6.09%
|
| Analyst Consensus |
Buy
|
Hold
|
Investment Thesis
Home Depot remains the world's largest home improvement retailer with 2,350+ stores, dominant 52% market share, and a rapidly growing Pro contractor segment bolstered by the SRS Distribution acquisition. The stock has declined 21% from its $427 high to $337, but now trades at 2.28x P/S, near the 5-year median of 2.31x, and 26.5x P/E which is above the 5-year median of 23.5x. EPS declined 4.6% in …
Lululemon Athletica Inc. is a premium athletic apparel retailer operating primarily in the consumer cyclical sector with a focus on apparel retail. The company has a strong brand and historically high profitability with a gross margin of 56.6% and ROE of 34.8%, but it faces significant near-term challenges including earnings pressure with a 21.6% decline in earnings in the most recent quarter and…
Accumulation Zones
| Metric |
HD |
LULU |
| Zone Low |
$285.00 |
$394.39 |
| Zone High |
$320.00 |
$446.97 |
| In Buy Zone? |
No
|
Yes
|