/Lowe)
Lowe's Companies, Inc. (LOW) is a leading home improvement retailer based in Mooresville, North Carolina. Operating across the U.S. and Canada, it serves DIY customers and professionals with products like tools, appliances, and building materials, along with services such as installation and repair. It is valued at a market cap of $147.4 billion. LOW is ready to announce its fiscal fourth-quarter earnings for 2024 before the market opens on Wednesday, Feb. 26.
Ahead of the event, analysts expect LOW to report a profit of $1.81 per share on a diluted basis, up 2.3% from $1.77 per share in the year-ago quarter. The company has consistently surpassed Wall Street’s EPS estimates in all of its last four quarterly reports.
For the fiscal year 2025, analysts expect LOW to report EPS of $11.88, down 10% from $13.20 in fiscal 2024. However, its EPS is expected to rise 5.7% year over year to $12.56 in fiscal 2026.
Over the past year, LOW has soared 20.2%, underperforming the S&P 500’s ($SPX) 25% gains and the Consumer Discretionary Select Sector SPDR Fund’s (XLY) 32% gains over the same time frame.
On Jan. 15, Lowe's shares gained over 2% as homebuilders and building suppliers rallied following a sharp drop in T-note yields, boosting housing demand.
However, on Nov. 19, LOW shares dipped 4.6% after it announced its Q3 earnings report. Lowe's posted an adjusted profit of $2.89 per share, surpassing Wall Street's estimate of $2.82, with revenue of $20.17 billion, exceeding the forecasted $19.96 billion. Despite raising its full-year sales and earnings outlook, ongoing declines in topline and profitability raised investor concerns.
Analysts’ consensus opinion on LOW stock is reasonably bullish, with a “Moderate Buy” rating overall. Out of 32 analysts covering the stock, 20 advise a “Strong Buy” rating, one suggests a “Moderate Buy” rating, and 11 give a “Hold.”
LOW’s average analyst price target is $282.73, indicating a potential upside of 7% from the current levels.
