Homeowners may boost spending on repairs, benefiting Home Depot and Lowe's despite current struggles.

Home Depot and Lowe's shares have fallen this year, but UBS analysts see potential growth ahead as many homes built during the mid-2000s housing boom reach 20 years old. This aging housing stock, along with older appliances and outdoor equipment purchased during the pandemic, is expected to drive an additional $1 billion to $2 billion in annual spending on home repairs and improvements. This trend could help these home-improvement retailers recover despite a slow housing market.