Want to see LOW full AI Analyst Report?
Top Page
Lowe's
(NYSE:LOW)
Select Model
Select Model
Rating:61Neutral
Price Target:
$209.00
▼(-2.61% Downside)
Action:Reiterated
Date:09/15/26
The score is driven primarily by solid profitability and strong free cash flow, partially offset by a structurally weak balance sheet (negative equity) and uneven growth. Near-term trading signals are bearish (price below key moving averages with weak momentum), while valuation and the dividend are supportive. The latest earnings call was constructive on strategy and execution, but bottom-end guidance and expected near-term EPS pressure temper the outlook.
Positive Factors
Strong Cash Generation
Lowe’s generates substantial operating and free cash flow, providing internal funding for dividends, reinvestment and strategic initiatives. This cash engine supports resilience through demand cycles and reduces reliance on external financing to sustain the business.
Negative Factors
Structurally Weak Balance Sheet
Negative equity combined with tens of billions in debt leaves Lowe’s balance sheet structurally leveraged and less flexible. If operating conditions weaken or capital markets tighten, debt obligations could constrain investment, shareholder returns and the ability to respond to disruption.
Read all positive and negative factors
Positive Factors
Negative Factors
Strong Cash Generation
Lowe’s generates substantial operating and free cash flow, providing internal funding for dividends, reinvestment and strategic initiatives. This cash engine supports resilience through demand cycles and reduces reliance on external financing to sustain the business.
Read all positive factors
Lowe's Key Performance Indicators (KPIs)
Any
Customer Transactions
Measures the number of purchases over time, revealing foot-traffic trends, conversion strength, and whether revenue changes are driven by more shoppers or by bigger purchases—key for understanding demand and the effectiveness of marketing and store operations.
Measures the number of purchases over time, revealing foot-traffic trends, conversion strength, and whether revenue changes are driven by more shoppers or by bigger purchases—key for understanding demand and the effectiveness of marketing and store operations.
Data provided by:
The Fly
The FlyLowe's (LOW) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$111.39B
Dividend Yield2.49%
Average Volume (3M)3.29M
Price to Earnings (P/E)16.6
Beta (1Y)0.72
Revenue Growth8.16%
EPS Growth-2.84%
CountryUS
Employees276,000
SectorConsumer Cyclical
Sector Strength84
IndustryHome Improvement
Share Statistics
EPS (TTM)11.84
Shares Outstanding561,054,000
10 Day Avg. Volume3,230,015
30 Day Avg. Volume3,289,794
Financial Highlights & Ratios
PEG Ratio-7.25
Price to Book (P/B)-15.05
Price to Sales (P/S)1.73
P/FCF Ratio19.51
Enterprise Value/Market Cap1.39
Enterprise Value/Revenue1.71
Enterprise Value/Gross Profit5.18
Enterprise Value/Ebitda12.09
Forecast
1Y Price Target
$251.62Price Target Upside17.25% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering24
EPS Forecast (FY)12.27
Revenue Forecast (FY)$92.18B
Lowe's Business Overview & Revenue Model
Company Description
Lowe's Companies, Inc., together with its various subsidiary entities, operates as a prominent home improvement retailer serving both the United States and international markets. The company supplies a broad spectrum of items essential for constru...
How the Company Makes Money
Lowe’s makes money primarily by selling home improvement products and related services to both retail consumers and professionals. The core revenue stream is merchandise sales through its stores and online channels, with revenue recognized from tr...
Lowe's Earnings Call Summary
Earnings Call Date:Aug 19, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Nov 18, 2026
Earnings Call Sentiment Positive
The call was predominantly positive about Lowe's execution, Pro, Online, Home Services, productivity initiatives, cash generation and long-term strategic investments. However, management acknowledged persistent DIY demand weakness, weather-related pressure, competitive promotions, margin headwinds, residential construction weakness at FBM and ADG, and a third-quarter EPS decline. The number and strength of the operational and strategic positives outweighed the stated challenges.Positive Updates
Quarterly Sales Growth and Positive Comparable Sales
Second-quarter sales were $26 billion, up 8.3% from the prior year, while comparable sales increased 0.2%. Lowe's achieved its 5 consecutive quarters of positive comparable sales.
Negative Updates
Persistent DIY Discretionary Spending Pressure
Discretionary DIY demand remained under pressure as customers were cautious about spending and prioritized repair and maintenance projects over larger discretionary investments. Management said the outlook reflects continued pressure in the second half.
Read all updates
Q2-2026 Updates
Positive
Negative
Quarterly Sales Growth and Positive Comparable Sales
Second-quarter sales were $26 billion, up 8.3% from the prior year, while comparable sales increased 0.2%. Lowe's achieved its 5 consecutive quarters of positive comparable sales.
Read all positive updates
Company Guidance
Lowe’s updated its full year 2026 outlook in line with the bottom end of the previous guidance range, expecting sales of approximately $92 billion, roughly flat comparable sales, adjusted operating margin of approximately 11.6%, full year adjusted diluted earnings per share of approximately $12.25, and capital expenditures of up to $2.5 billion; the outlook includes the tariff benefits recognized in Q2 but excludes any potential additional benefits in the second half of the year. For the third quarter, the company expects comp sales to be in line with its full year outlook and adjusted diluted earnings per share to be approximately 7% below prior year adjusted diluted earnings per share, while Q4 includes about a 50 basis point drag from cycling last year’s winter storm. The company expects to achieve its 2.75x leverage ratio target in mid-2027.Lowe's Financial Statement Overview
Summary
Income Statement
72
Positive
Balance Sheet
34
Negative
Cash Flow
67
Positive
| Breakdown | TTM | Jan 2026 | Jan 2025 | Jan 2024 | Jan 2023 | Jan 2022 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 90.43B | 86.29B | 83.67B | 86.38B | 97.06B | 96.25B |
| Gross Profit | 29.92B | 28.89B | 27.88B | 28.84B | 32.26B | 32.06B |
| EBITDA | 12.82B | 12.47B | 12.60B | 13.58B | 12.18B | 13.99B |
| Net Income | 6.64B | 6.65B | 6.96B | 7.73B | 6.44B | 8.44B |
Balance Sheet | ||||||
| Total Assets | 55.88B | 54.14B | 44.57B | 43.36B | 45.27B | 46.33B |
| Cash, Cash Equivalents and Short-Term Investments | 3.41B | 1.35B | 2.13B | 1.23B | 1.73B | 1.40B |
| Total Debt | 42.02B | 44.68B | 39.68B | 40.15B | 37.99B | 29.38B |
| Total Liabilities | 63.32B | 64.06B | 58.80B | 58.41B | 59.53B | 51.15B |
| Stockholders Equity | -7.44B | -9.92B | -14.23B | -15.05B | -14.25B | -4.82B |
Cash Flow | ||||||
| Free Cash Flow | 7.00B | 7.65B | 7.70B | 6.18B | 6.76B | 8.26B |
| Operating Cash Flow | 9.26B | 9.86B | 9.63B | 8.14B | 8.59B | 10.11B |
| Investing Cash Flow | -10.68B | -12.26B | -1.74B | -1.90B | -1.31B | -1.65B |
| Financing Cash Flow | -269.00M | 1.62B | -7.05B | -6.67B | -7.05B | -12.02B |
Lowe's Technical Analysis
Positive
214.60
Price Trends
196.90
Positive
204.81
Negative
224.96
Negative
Market Momentum
1.12
Negative
66.29
Neutral
84.48
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For LOW, the sentiment is Positive. The current price of 214.6 is above the 20-day moving average (MA) of 188.05, above the 50-day MA of 196.90, and below the 200-day MA of 224.96, indicating a neutral trend. The MACD of 1.12 indicates Negative momentum. The RSI at 66.29 is Neutral, neither overbought nor oversold. The STOCH value of 84.48 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for LOW.
Lowe's Risk Analysis
Lowe's disclosed 26 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 |
|---|---|---|---|---|---|---|---|
79 Outperform | $29.84B | 25.59 | 57.79% | 1.16% | 2.24% | 7.35% | |
69 Neutral | $19.69B | 15.63 | 42.82% | 4.07% | 1.45% | 65.55% | |
65 Neutral | $17.15B | 17.03 | 39.30% | 2.91% | 3.98% | -5.90% | |
64 Neutral | $4.81B | 20.98 | 9.55% | ― | 2.42% | 9.53% | |
62 Neutral | $314.38B | 21.94 | 102.68% | 2.96% | 2.50% | -2.95% | |
61 Neutral | $18.38B | 12.79 | -2.54% | 3.03% | 1.52% | -15.83% | |
61 Neutral | $111.39B | 16.60 | -71.79% | 2.49% | 8.16% | -2.84% |
* Consumer Cyclical Sector Average
LOW
Lowe's
204.37
-34.25
-14.35%
BBY
Best Buy Co
99.83
21.57
27.56%
HD
Home Depot
327.73
-46.70
-12.47%
TSCO
Tractor Supply
34.73
-20.30
-36.88%
WSM
Williams-Sonoma
260.80
75.29
40.58%
FND
Floor & Decor Holdings
48.17
-23.02
-32.34%
Lowe's Corporate Events
Business Operations and StrategyExecutive/Board Changes
Lowe’s Announces New Executives to Drive Growth Strategy
Positive
Sep 2, 2026
On August 28, 2026, Lowe’s announced a series of executive appointments effective September 1, 2026, aimed at advancing its Total Home strategy and supporting the next phase of growth. Joseph M. McFarland III was named Executive Vice Preside...
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.