1414 ET - Home Depot and Lowe's are set to report quarterly earnings next week, providing a test to the resilience of the home-improvement sector, UBS analysts say in a research note. The companies are operating against a lackluster housing backdrop, as turnover continues to decline, rates remain elevated and larger discretionary projects remain under pressure, they say. As such, the debate is less about when the housing market will recover, and more about what Home Depot and Lowe's can earn in the meantime. Boding well for the companies, the analysts say demand seems to have bottomed, with repair-and-maintenance sales supporting the category. "Eventually, this should create a backdrop where the more discretionary remodeling elements of the sector recover and drive a leg higher," they write.