Lowe’s (LOW) is making it clear that artificial intelligence and human workers will both be important going forward. CEO Marvin Ellison said that the home improvement retailer is already using AI, but pointed out that it cannot replace physical labor. For example, while AI can write code, it cannot climb a ladder or fix a roof. Because of this, Lowe’s believes that the best approach is to combine AI tools with skilled workers, especially in areas like home repair and maintenance, where hands-on work is still essential.
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It is also worth noting that there is a growing shortage of skilled labor. In fact, Ellison said that the situation could get much worse, with about 41% of construction workers expected to retire within five years. In addition, the industry will need around 350,000 new workers just to keep up with demand. This demand is coming not only from housing, but also from large projects like data centers, which require electricians, plumbers, and other skilled workers. As a result, Lowe’s Foundation recently committed $250 million to train 250,000 tradespeople by 2035.
Separately, Lowe’s recently launched HomeCare+, which is a $99-per-year subscription that sends workers to customers’ homes twice a year for basic maintenance tasks. Lowe’s is also investing in AI through partnerships to improve operations and customer experience. However, the company still expects a slow home improvement market in 2026, with sales growth projected to be flat to up 2%. High mortgage rates above 6% are also holding back home sales, and since home turnover drives renovation activity, this is making many consumers more cautious.
Is LOW Stock a Good Buy?
Turning to Wall Street, analysts have a Moderate Buy consensus rating on LOW stock based on 14 Buys, seven Holds, and zero Sells assigned in the past three months, as indicated by the graphic below. Furthermore, the average LOW price target of $291 per share implies 19.3% upside potential.
