/Lowe)
Mooresville, North Carolina-based Lowe's Companies, Inc. (LOW) operates as a home improvement retailer. It offers a variety of products for construction, maintenance, repair, remodeling, decorating, and home improvement. With a market cap of $154.9 billion, the company operates 120+ supply chain facilities and 1,700+ home improvement and hardware stores spread across the U.S.
Companies worth $10 billion or more are generally described as "large-cap stocks," Lowe's fits this bill perfectly. Given the company's widespread store network, its valuation above this mark is not surprising. Lowe’s serves nearly 16 million customer transactions per week in the U.S., employs over 300,000 people and operates as the second-largest home improvement retailer in the world.
Lowe’s touched its all-time high of $287.01 on Oct. 15 and is currently trading 5.1% below that peak. Despite surging 10.9% over the past three months, the stock has lagged behind the Nasdaq Composite’s ($NASX) 15.5% gains during the same time frame.
Despite observing notable gains, Lowe’s has lagged behind the Nasdaq over the longer term as well. Lowe’s stock has gained 22.3% on a YTD basis and 31.2% over the past 52 weeks compared to NASX’s returns of 31.5% in 2024 and 39.1% over the past year.
To confirm the bullish trend, Lowe’s has consistently traded above its 200-day moving average and mostly above its 50-day moving average with minor fluctuations since mid-July.
Despite reporting better-than-expected results, Lowe’s stock prices declined 4.6% after the release of its Q3 earnings on Nov. 19. Although Lowe’s results were modestly better-than-expected, the company has continued to observe a decline in topline and profitability. Due to a 1.1% year-over-year decline in comparable sales, its overall net sales decreased 1.5% year-over-year to approximately $20.2 billion.
Meanwhile, its selling, general and admin expenses increased 1.8% year-over-year to over $3.8 billion contributing to the decline in its profitability. The company reported an 11.6% year-over-year decrease in adjusted EPS of $2.89. On a positive note, the company has improved its full-year sales and earnings guidance, reassuring investors.
Lowe’s has marginally lagged behind its competitor The Home Depot, Inc.’s (HD) 23.5% gains on a YTD basis and 32.1% returns over the past year.
Among the 32 analysts covering LOW stock, the consensus rating is a “Moderate Buy.” The mean price target of $281.67 represents a 3.5% premium to current price levels.
