/Lowe)
Lowe's Companies, Inc. (LOW) is a leading home improvement retailer serving homeowners, professionals, and contractors across North America. Headquartered in Mooresville, North Carolina, Lowe’s operates over 1,700 stores in the U.S. and has a significant presence in Canada and Mexico. The company has a market cap of $141.3 billion and offers a wide range of products, including appliances, tools, hardware, building materials, and home décor, catering to both DIY customers and professional contractors.
LOW shares have underperformed the broader market over the past year. Over the past 52 weeks, Lowe’s stock has rallied 12.1%, lagging behind the S&P 500 Index’s ($SPX) 23.5% returns. In 2025, Lowe’s gained 2.4% compared to SPX’s 4% gains on a YTD basis.
Narrowing the focus, LOW has outperformed the Consumer Discretionary Select Sector SPDR Fund’s (XLY) 28.9% returns over the past 52 weeks but trails the ETF's 1.2% gains on a YTD basis.
Lowe’s has underperformed the broader market over the past year due to weaker DIY and big-ticket sales, as consumers cut discretionary spending amid high inflation and interest rates. Macroeconomic uncertainty and stiff competition have further pressured sales.
On Nov. 19, Lowe’s shares fell 4.6% following the release of its Q3 earnings report. The company delivered an adjusted EPS of $2.89, beating Wall Street’s estimate of $2.82, while revenue reached $20.17 billion, surpassing the expected $19.96 billion. Despite raising its full-year sales and earnings guidance, continued declines in revenue and profitability fueled investor concerns.
For the fiscal year that ended in January 2025, analysts expect Lowe’s to report an EPS of $11.82, down 9.9% annually. However, the company’s earnings surprise history is robust. It beat the consensus estimates in all of the last four quarters.
Among the 32 analysts covering the LOW stock, the consensus rating is a “Moderate Buy.” That’s based on 20 “Strong Buy” ratings, one “Moderate Buy,” and 11 “Holds.”
This configuration has been consistent over the past months.
On Feb. 11, Truist Financial Corporation (TFC) raised Lowe’s price target to $308 from $307 while maintaining a “Buy” rating. Citing improved Truist Card Data, the firm revised its comparable sales forecast to -1% from -2%, highlighting continued momentum from Q3 into Q4. Analysts note that consumer adaptation to inflation and interest rates, along with rising home equity, could support increased home improvement spending.
LOW’s mean price target of $283.42 represents a premium of 12.2% from current price levels. The Street-high target of $316 indicates a potential upside of 25.1%.
