Lowe's Companies (LOW)
NYSE:LOW
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Lowe's
(NYSE:LOW)
Select Model
Select Model
Rating:58Neutral
Price Target:
$246.00
▲(4.59% Upside)
Action:ReiteratedDate:03/27/26
The score is anchored by solid operating performance and strong free cash flow, but is pulled down by balance-sheet risk (negative equity) and weak technical momentum (below major moving averages with negative MACD). Valuation is reasonable with a modest dividend yield, but not compelling enough to fully offset the risks.
Positive Factors
Free Cash Flow Strength
Consistently strong operating cash flow and robust free cash flow provide durable internal funding for capital expenditure, store investments, dividends and debt reduction. This cash-generation ability supports financial flexibility and long-term shareholder returns even through business cycle swings.
Negative Factors
Negative Equity / Capital Structure
Persistently negative shareholders' equity signals aggressive buybacks or accumulated deficits and reduces balance-sheet resilience. It limits traditional leverage metrics, can constrain borrowing capacity, and raises long-term financial flexibility and credibility risks with creditors.
Read all positive and negative factors
Positive Factors
Negative Factors
Free Cash Flow Strength
Consistently strong operating cash flow and robust free cash flow provide durable internal funding for capital expenditure, store investments, dividends and debt reduction. This cash-generation ability supports financial flexibility and long-term shareholder returns even through business cycle swings.
Read all positive factors
Lowe's (LOW) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$131.73B
Dividend Yield1.94%
Average Volume (3M)2.86M
Price to Earnings (P/E)22.4
Beta (1Y)0.72
Revenue Growth0.64%
EPS Growth0.58%
CountryUS
Employees300,000
SectorConsumer Cyclical
Sector Strength84
IndustryHome Improvement
Share Statistics
EPS (TTM)1.98
Shares Outstanding560,063,400
10 Day Avg. Volume2,771,813
30 Day Avg. Volume2,858,050
Financial Highlights & Ratios
PEG Ratio-7.23
Price to Book (P/B)-15.05
Price to Sales (P/S)1.73
P/FCF Ratio19.51
Enterprise Value/Market Cap1.05
Enterprise Value/Revenue1.60
Enterprise Value/Gross Profit4.78
Enterprise Value/Ebitda11.54
Forecast
1Y Price Target
$292.70Price Target Upside24.45% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering22
EPS Forecast (FY)12.61
Revenue Forecast (FY)$93.26B
Lowe's Business Overview & Revenue Model
Company Description
Lowe's Companies, Inc., together with its subsidiaries, operates as a home improvement retailer in the United States and internationally. The company offers a line of products for construction, maintenance, repair, remodeling, and decorating. It p...
How the Company Makes Money
Lowe's primarily makes money by selling home improvement and maintenance products to consumers and Pro customers through its retail stores and e-commerce platforms, generating revenue from merchandise sales across major categories (e.g., appliance...
Lowe's Key Performance Indicators (KPIs)
Any
Customer Transactions
Tracks the number of purchases made by customers, indicating consumer demand, shopping frequency, and overall sales performance.
Tracks the number of purchases made by customers, indicating consumer demand, shopping frequency, and overall sales performance.
Data provided by:
The Fly
The FlyLowe's Earnings Call Summary
Earnings Call Date:Nov 19, 2025
(Q3-2025)
| % Change Since: |
Next Earnings Date:May 27, 2026
Earnings Call Sentiment Neutral
The earnings call reflects positive growth in revenue, online sales, and strategic initiatives, but is tempered by macroeconomic challenges and the impact of recent hurricanes on sales. The acquisition of FBM is seen as a positive long-term investment despite current financing costs.Positive Updates
Revenue and Earnings Growth
Third quarter sales were $20.8 billion, with comparable sales increasing 0.4% year-over-year. Adjusted diluted earnings per share increased by 6%, reaching $3.06.
Negative Updates
Macro Environment Challenges
Ongoing uncertainties in the macro environment, with consumer affordability and confidence issues affecting larger discretionary purchases.
Read all updates
Q3-2025 Updates
Positive
Negative
Revenue and Earnings Growth
Third quarter sales were $20.8 billion, with comparable sales increasing 0.4% year-over-year. Adjusted diluted earnings per share increased by 6%, reaching $3.06.
Read all positive updates
Company Guidance
During the third quarter of 2025 earnings call, Lowe's provided several key metrics and insights into their performance and future expectations. The company's sales for the quarter reached $20.8 billion, with comparable sales increasing by 0.4% year-over-year despite a 100 basis point headwind from Hurricanes Helene and Milton. The adjusted operating margin expanded by approximately 10 basis points, resulting in adjusted diluted earnings per share of $3.06, marking a 6% increase from the previous year. Online sales grew by 11.4%, driven by increased traffic and conversion rates. In terms of their Total Home strategy, they reported growth in their Pro segment and double-digit comps in Home Services. Additionally, Lowe's acquisition of Foundation Building Materials (FBM) was completed in October, with FBM expected to contribute approximately $1.3 billion in sales in the fourth quarter. Despite a cautious macro environment, Lowe's remains optimistic about the long-term health of the home improvement sector, with expectations for flat comp sales for the year and adjusted diluted earnings per share of approximately $12.25, representing 2% growth over the prior year.Lowe's Financial Statement Overview
Summary
Income Statement
74
Positive
Balance Sheet
38
Negative
Cash Flow
80
Positive
| Breakdown | Jan 2026 | Jan 2025 | Jan 2024 | Jan 2023 | Jan 2022 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 86.29B | 83.67B | 86.38B | 97.06B | 96.25B |
| Gross Profit | 28.89B | 26.15B | 27.13B | 30.49B | 30.39B |
| EBITDA | 10.69B | 12.59B | 13.57B | 12.69B | 14.47B |
| Net Income | 6.65B | 6.96B | 7.73B | 6.44B | 8.44B |
Balance Sheet | |||||
| Total Assets | 54.14B | 44.57B | 43.36B | 45.27B | 46.33B |
| Cash, Cash Equivalents and Short-Term Investments | 1.35B | 2.13B | 1.23B | 1.73B | 1.40B |
| Total Debt | 7.19B | 39.68B | 40.15B | 37.99B | 29.38B |
| Total Liabilities | 64.06B | 58.80B | 58.41B | 59.53B | 51.15B |
| Stockholders Equity | -9.92B | -14.23B | -15.05B | -14.25B | -4.82B |
Cash Flow | |||||
| Free Cash Flow | 7.65B | 7.70B | 6.18B | 6.76B | 8.26B |
| Operating Cash Flow | 9.86B | 9.63B | 8.14B | 8.59B | 10.11B |
| Investing Cash Flow | -12.26B | -1.74B | -1.90B | -1.31B | -1.65B |
| Financing Cash Flow | 1.62B | -7.05B | -6.67B | -7.05B | -12.02B |
Lowe's Technical Analysis
Negative
235.20
Price Trends
258.95
Negative
251.96
Negative
245.67
Negative
Market Momentum
-7.24
Negative
36.46
Neutral
63.91
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For LOW, the sentiment is Negative. The current price of 235.2 is below the 20-day moving average (MA) of 237.57, below the 50-day MA of 258.95, and below the 200-day MA of 245.67, indicating a bearish trend. The MACD of -7.24 indicates Negative momentum. The RSI at 36.46 is Neutral, neither overbought nor oversold. The STOCH value of 63.91 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for LOW.
Lowe's Risk Analysis
Lowe's disclosed 25 risk factors in its most recent earnings report. Lowe's reported the most risks in the "Production" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Lowe's Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
67 Neutral | $23.89B | 24.85 | 44.36% | 1.80% | 4.26% | 0.73% | |
67 Neutral | $21.73B | 23.88 | 51.45% | 1.37% | 5.10% | 7.59% | |
65 Neutral | $325.35B | 26.52 | 130.02% | 2.67% | 7.50% | -0.38% | |
61 Neutral | $18.38B | 12.79 | -2.54% | 3.03% | 1.52% | -15.83% | |
58 Neutral | $131.73B | 22.44 | -59.21% | 1.94% | 0.64% | 0.58% | |
56 Neutral | $5.33B | 43.30 | 8.99% | ― | 6.04% | 10.26% | |
51 Neutral | $13.43B | 12.85 | 38.54% | 5.46% | -0.95% | -48.28% |
* Consumer Cyclical Sector Average
LOW
Lowe's
235.20
22.55
10.60%
BBY
Best Buy Co
64.20
6.24
10.76%
HD
Home Depot
326.65
-6.44
-1.93%
TSCO
Tractor Supply
45.39
-3.12
-6.43%
WSM
Williams-Sonoma
182.62
39.74
27.82%
FND
Floor & Decor Holdings
49.38
-23.58
-32.32%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.