Home improvement retailer Lowe’s (LOW) is scheduled to announce its results for the third quarter of Fiscal 2025 on Wednesday, November 19. LOW stock is down about 9% year-to-date, as the home improvement market remains under pressure from high rates and tariff woes. According to TipRanks’ Options Tool, options traders expect about a 5.08% move in either direction in LOW stock in reaction to Q3 FY25 results. This implied move is higher than LOW stock’s average post-earnings move (in absolute terms) of 2.13% over the past four quarters.
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Wall Street expects Lowe’s to report earnings per share (EPS) of $2.97, reflecting a 2.8% year-over-year growth. Meanwhile, Q3 net sales are expected to grow 3.3% to $20.83 billion.
Analysts’ Views Ahead of Lowe’s Q3 Earnings
Heading into Q3 earnings, Stifel analyst Andrew Carter slashed the price target for Lowe’s Companies stock to $230 from $275 while reiterating a Hold rating. Carter reduced his estimates for the second half of 2025, Fiscal 2026, and Fiscal 2027 for both Home Depot (HD) and Lowe’s to reflect weakness in the second half of this year and a delayed recovery in the home improvement space. While Carter believes in the long-term prospects of the home improvement category, he contends that “the near-term setup is too challenging to maintain our positive approach.”
Earlier this month, Bernstein analyst Zhihan Ma increased the price target for LOW stock to $282 from $279 and reaffirmed a Buy rating. Ma stated that Lowe’s is his preferred pick over rival Home Depot in the near-to-medium timeframe, as the stock’s valuation multiple is at an all-time high discount to HD.
Furthermore, Ma expects Lowe’s to close its margin gap with Home Depot by cutting costs to offset its capital spending. If the market recovers, Ma expects Lowe’s to bounce back faster than Home Depot as it has more exposure to big-ticket, discretionary items. Nonetheless, the analyst expects that, in the near term, LOW and HD stocks will be more affected by housing macro conditions and inflation/interest-rate expectations than by their own fundamentals.
Is LOW Stock a Buy, Hold, or Sell?
Currently, Wall Street has a Moderate Buy consensus rating on Lowe’s stock based on 16 Buys and eight Hold recommendations. The average LOW stock price target of $284.18 indicates 26.3% upside potential from current levels.
