Lowe's has doubled its quarterly dividend since 2021 and still outpaces Home Depot and Target on payout growth, but a frozen housing market and fresh acquisition debt are now squeezing the engine that makes those raises possible.
Lowe’s (NYSE:LOW | LOW Price Prediction) will send its next $1.25 quarterly dividend on November 4, 2026. The stock is down 21.86% year to date, which has lifted the yield to 2.53%. For retirees, the yield matters less than one question: can Lowe’s keep raising the payout while its biggest end market, housing, remains near a standstill?
Free Cash Flow Covers the Dividend Several Times Over
In fiscal 2025, Lowe’s produced $9.864 billion of operating cash flow and spent $2.213 billion on capex. That left about $7.65 billion of free cash flow. Dividends took $2.636 billion, roughly 34% of it. The forward dividend of $5 per share equals about 41% of management’s $12.25 adjusted EPS guidance.
The second quarter showed the same buffer. Brandon Sink put it simply during the August call:
“We generated $3.1 billion in free cash flow.”
Dividends paid in that quarter came to $673 million. The cash does come in unevenly through the year, though. In the quarter ending October 2025, operating cash flow was just $687 million against $673 million of dividends.
Lowe’s Is Raising Faster Than Home Depot and Target
In May, Lowe’s lifted its quarterly payout from $1.20 to $1.25, an increase of about 4.2%. Home Depot (NYSE:HD) raised its quarterly dividend just 1.3% to $2.33. Target (NYSE:TGT) managed 1.8%. Lowe’s quarterly payout has grown about 108% since the $0.60 it paid in early 2021. On the call, management tied the payout to its “commitment to returning capital to shareholders and our status as a dividend aristocrat.”
Housing Weakness Puts a Ceiling on Growth
Existing home sales slipped to 3.98 million in August, the low of the past year. Housing starts came in at 1.275 million. Lowe’s comparable sales rose only 0.2% last quarter, while transactions fell 2.1%. Marvin Ellison, the chief executive, was direct:
“Discretionary DIY demand remains under pressure.”
The push to win more professional contractors adds a second layer of housing risk. About 45% of the FBM acquisition’s business depends on residential construction, and the figure for ADG is 100%. Net interest expense is heading toward about $1.6 billion this year. Adjusted debt to EBITDA stands at 3.0 times, and management is aiming for 2.75 times by mid-2027. Big buybacks in past years, $14.124 billion in the fiscal year ending January 2023 alone, left shareholders’ equity at -$7.44 billion.
Our View: Lowe’s Keeps Growing the Payout, but More Slowly
Lowe’s remains a reliable dividend grower. Two things back that up. Buybacks fell to just $30 million in fiscal 2025, which leaves the dividend first in line for cash. And the payout uses only about a third of free cash flow.
The trade-off is speed. While the company pays down acquisition debt and housing stays soft, expect raises in the low-to-mid single digits rather than the big increases of 2021 and 2022 (we ranked ten long-streak dividend growers like Lowe’s by valuation in a free Dividend Kings report). Ellison is counting on a recovery:
“We know at some point we’re going to have to build houses in this country.”
The next hurdle is third-quarter results. Management expects adjusted EPS to come in about 7% below last year. Watch free cash flow and debt closely, because those two numbers will set the size of the next raise.
Contact [email protected] for any questions or corrections.
Lowe's (LOW - Free Report) is one of the stocks most watched by Zacks.com visitors lately. So, it might be a good idea to review some of the factors that might affect the near-term performance of the stock.
Shares of this home improvement retailer have returned -12.2% over the past month versus the Zacks S&P 500 composite's +0.8% change. The Zacks Retail - Home Furnishings industry, to which Lowe's belongs, has lost 11.5% over this period. Now the key question is: Where could the stock be headed in the near term?
Although media reports or rumors about a significant change in a company's business prospects usually cause its stock to trend and lead to an immediate price change, there are always certain fundamental factors that ultimately drive the buy-and-hold decision.
Earnings Estimate RevisionsHere at Zacks, we prioritize appraising the change in the projection of a company's future earnings over anything else. That's because we believe the present value of its future stream of earnings is what determines the fair value for its stock.
Our analysis is essentially based on how sell-side analysts covering the stock are revising their earnings estimates to take the latest business trends into account. When earnings estimates for a company go up, the fair value for its stock goes up as well. And when a stock's fair value is higher than its current market price, investors tend to buy the stock, resulting in its price moving upward. Because of this, empirical studies indicate a strong correlation between trends in earnings estimate revisions and short-term stock price movements.
For the current quarter, Lowe's is expected to post earnings of $2.86 per share, indicating a change of -6.5% from the year-ago quarter. The Zacks Consensus Estimate has changed -0.7% over the last 30 days.
The consensus earnings estimate of $12.26 for the current fiscal year indicates a year-over-year change of -0.2%. This estimate has remained unchanged over the last 30 days.
For the next fiscal year, the consensus earnings estimate of $13.03 indicates a change of +6.3% from what Lowe's is expected to report a year ago. Over the past month, the estimate has changed -0.1%.
Having a strong externally audited track record, our proprietary stock rating tool, the Zacks Rank, offers a more conclusive picture of a stock's price direction in the near term, since it effectively harnesses the power of earnings estimate revisions. Due to the size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, Lowe's is rated Zacks Rank #4 (Sell).
The chart below shows the evolution of the company's forward 12-month consensus EPS estimate:
12 Month EPS
Revenue Growth ForecastWhile earnings growth is arguably the most superior indicator of a company's financial health, nothing happens as such if a business isn't able to grow its revenues. After all, it's nearly impossible for a company to increase its earnings for an extended period without increasing its revenues. So, it's important to know a company's potential revenue growth.
For Lowe's, the consensus sales estimate for the current quarter of $22.37 billion indicates a year-over-year change of +7.5%. For the current and next fiscal years, $91.99 billion and $94.3 billion estimates indicate +6.6% and +2.5% changes, respectively.
Last Reported Results and Surprise HistoryLowe's reported revenues of $25.96 billion in the last reported quarter, representing a year-over-year change of +8.3%. EPS of $4.4 for the same period compares with $4.33 a year ago.
Compared to the Zacks Consensus Estimate of $26.13 billion, the reported revenues represent a surprise of -0.68%. The EPS surprise was +4.27%.
The company beat consensus EPS estimates in each of the trailing four quarters. The company topped consensus revenue estimates two times over this period.
ValuationWithout considering a stock's valuation, no investment decision can be efficient. In predicting a stock's future price performance, it's crucial to determine whether its current price correctly reflects the intrinsic value of the underlying business and the company's growth prospects.
Comparing the current value of a company's valuation multiples, such as its price-to-earnings (P/E), price-to-sales (P/S), and price-to-cash flow (P/CF), to its own historical values helps ascertain whether its stock is fairly valued, overvalued, or undervalued, whereas comparing the company relative to its peers on these parameters gives a good sense of how reasonable its stock price is.
The Zacks Value Style Score (part of the Zacks Style Scores system), which pays close attention to both traditional and unconventional valuation metrics to grade stocks from A to F (an A is better than a B; a B is better than a C; and so on), is pretty helpful in identifying whether a stock is overvalued, rightly valued, or temporarily undervalued.
Lowe's is graded B on this front, indicating that it is trading at a discount to its peers. Click here to see the values of some of the valuation metrics that have driven this grade.
Bottom LineThe facts discussed here and much other information on Zacks.com might help determine whether or not it's worthwhile paying attention to the market buzz about Lowe's. However, its Zacks Rank #4 does suggest that it may underperform the broader market in the near term.
Lowe's spustila pilotní doručení pomocí dronů v Charlotte, kde lze přes DoorDash objednat vybrané potřeby pro domácnost až za 20 minut. Služba je zatím dostupná u prodejny v Matthews.
Lowe's pilots new fulfillment method in home market of Charlotte, N.C., delivering project essentials to customers in as fast as 20 minutes Products can be ordered through the DoorDash app and delivered via Wing drones , /PRNewswire/ -- Lowe's today announced the launch of drone delivery, the newest fulfillment method for the retailer that delivers select home improvement items directly to DIY and Pro customers in as fast as 20 minutes. This pilot is now live at Lowe's store in Matthews, N.C., and adds to same-day fulfillment options for customers, including buy online, pick up in store; curbside pickup and same-day delivery. The launch builds on Wing and DoorDash's existing drone delivery operations in the Charlotte area, adding Lowe's to the growing list of brands now available for delivery via drone.
Lowe's announces the launch of drone delivery, the newest fulfillment method for the retailer that delivers select home improvement items directly to DIY and Pro customers in as fast as 20 minutes.
Project essentials from Lowe's can be ordered through the DoorDash app and delivered by Wing drones in as fast as 20 minutes.
Hand tools, paint products, and household essentials like soap, tape, and batteries are just a few examples of project essentials that can be ordered from Lowe's through the DoorDash app and delivered by drone.
Home improvement projects rarely go exactly as planned. Whether halfway through a paint project, tackling a weekend repair, or working on a jobsite, forgotten supplies can stall momentum by requiring a trip to the store. As part of Lowe's mission to solve problems and fulfill dreams for the home, the retailer is expanding its same-day delivery speed through drone delivery in partnership with Wing and DoorDash. The initial pilot spans a curated list of eligible products, including hand tools and paint products, plus everyday household items such as soap, tape, all-purpose cleaner and batteries – products that are easily forgotten yet critical to finishing any home improvement task.
"At Lowe's, our mission is to solve problems and fulfill dreams for the home. To achieve this mission, we're removing friction from home improvement and making it easier for customers to enjoy their home. Any technology we implement is designed to eliminate that friction so our customers can complete their projects quickly," said Seemantini Godbole, chief information and AI officer at Lowe's. "By piloting drone delivery, we're addressing a real project pain point with an innovative solution that is integrated into the retail journey, giving our hometown customers next-generation fulfillment right when they need it."
How it works:
Check eligibility: Open the DoorDash app. Drone delivery will automatically display as an option if the delivery address is eligible near the Matthews, N.C. Lowe's store. Order: Select the dedicated "Lowe's by Drone" storefront in the DoorDash app. Shop: Simply fill your cart with eligible items and check out as usual. Wing drones currently transport orders weighing approximately 2.5 pounds per flight, delivering fast last-minute supplies to your home in minutes. Lowe's drone delivery pilot builds on the company's broader efforts to use technology in ways that transform how customers shop, and how Lowe's associates sell and work. Recent innovations include Mylow, Lowe's AI assistant for customers, and Mylow Companion, its AI-powered assistant for store associates, which together have helped answer more than 25 million questions since launching in 2025.
About Lowe's
Lowe's Companies, Inc. (NYSE: LOW) is a FORTUNE® 100 home improvement company with total fiscal 2025 sales of more than $86 billion. Lowe's employs approximately 300,000 associates and operates over 1,750 home improvement stores, 540 branches and 120 distribution centers. Lowe's is a core value S&P 500 equity stock and a dividend aristocrat. Based in Mooresville, N.C., Lowe's supports the communities it serves through programs focused on creating safe, affordable housing, improving community spaces, helping to develop the next generation of skilled trade experts and providing disaster relief to communities in need. For more information, visit Lowes.com.
Media Inquiries
Cliff Cermak
Lowe's Companies, Inc.
[email protected]
Lowe’s za 2. fiskální čtvrtletí překonal odhad upraveného zisku na akcii 4,40 USD, ale tržby 25,956 miliardy USD zaostaly za očekáváním. Firma zároveň snížila výhled pro fiskální rok 2026 na spodní hranici dřívějšího rozpětí.
It has been about a month since the last earnings report for Lowe's (LOW - Free Report) . Shares have lost about 10.7% in that time frame, underperforming the S&P 500.
Will the recent negative trend continue leading up to its next earnings release, or is Lowe's due for a breakout? Well, first let's take a quick look at its most recent earnings report in order to get a better handle on the recent catalysts for Lowe's Companies, Inc. before we dive into how investors and analysts have reacted as of late.
Lowe’s Q2 Earnings Beat Estimates, FY’26 Outlook Moves LowerLowe’s reported second-quarter fiscal 2026 adjusted earnings of $4.40 per share, up 1.6% year over year, surpassing the Zacks Consensus Estimate of $4.22. Revenues rose 8.3% to $25,956 million but missed the consensus estimate of $26,135 million.
Results were supported by strength in Pro and home services, and a 15.7% increase in online sales, while persistent DIY macro pressure tempered demand. The quarter included a benefit of 11 cents per share from tariff refunds. Lowe’s also lowered its fiscal 2026 outlook, bringing its sales, comparable-sales, margin and earnings expectations down to the lower end of its previously issued ranges to reflect first-half performance and current demand trends.
LOW’s Earnings Get Help From Tariff RefundsReported earnings were $4.27 per share, unchanged from the year-ago quarter. Lowe’s recognized $96 million in pre-tax expenses tied to intangible asset amortization from the Artisan Design Group and Foundation Building Materials acquisitions.
The non-GAAP reconciliation added back a net 13 cents per share related to those acquisition expenses. In the prior-year quarter, acquisition-related items reduced earnings by a net 6 cents per share. Pre-tax earnings increased to $3.18 billion from $3.16 billion, while net interest expense rose to $374 million from $313 million.
Lowe’s Sales Mix Shows Pro & Home Services StrengthComparable sales increased 0.2% year over year and marked the fifth consecutive quarter of positive comps. Pro and home services were key contributors, while discretionary DIY spending remained pressured by the macro environment. Management highlighted continued execution of the company’s Total Home strategy.
The online business remained another source of momentum during the quarter. Management said sustained growth across Pro, online and home services supported positive comparable sales. As of July 31, 2026, Lowe’s operated 1,761 stores representing 196.0 million square feet of retail selling space.
LOW’s Gross & Operating Margins ContractGross profit increased 5.9% year over year to $8.58 billion from $8.10 billion. Gross margin fell 80 basis points year over year to 33%.
Selling, general and administrative expenses increased 6.7% to $4.46 billion, although SG&A as a percentage of sales improved to 17.2% from 17.4%.
Depreciation and amortization rose to $572 million from $457 million. Operating income advanced 2.3% to $3.55 billion, but operating margin narrowed to 13.7% from 14.5%.
Lowe’s Balance Sheet and Cash FlowCash and cash equivalents stood at $3.17 billion at quarter-end compared with $4.86 billion a year earlier. Merchandise inventory increased to $17.7 billion from $16.3 billion, while long-term debt, excluding current maturities, rose to $35.2 billion from $30.6 billion. Total assets were $55.9 billion.
For the first six months of fiscal 2026, net cash provided by operating activities was $7.01 billion compared with $7.61 billion in the prior-year period. Capital expenditures were $1.06 billion. Cash dividend payments totaled $1.35 billion, and common-stock repurchases were $366 million. Net cash used in financing activities reached $4.06 billion.
LOW Narrows Fiscal 2026 Outlook to Lower EndLowe’s expects fiscal 2026 total sales of $92 billion compared with its prior range of $92-$94 billion. Comparable sales are projected to be flat, versus the previous expectation of flat to up 2%. The revision reflects first-half operating results and current demand trends.
The company projects an operating margin of 11.2%, versus the earlier 11.2-11.4% range and an adjusted operating margin of 11.6%, compared with 11.6-11.8% previously. Earnings are expected to be about $11.75 per share, compared with the prior expected range of $11.75 to $12.25 per share. Adjusted earnings are forecast at about $12.25 per share compared with the prior expected range of $12.25 to $12.75 per share. Capital expenditures remain targeted at up to $2.50 billion.
The outlook includes tariff refunds recognized in the second quarter but excludes potential additional tariff refunds in the second half. Lowe’s also expects net interest expense of about $1.60 billion and an effective tax rate of roughly 24.5%. Adjusted guidance excludes an expected 40-basis-point operating-margin impact and an after-tax impact of 50 cents per share from acquisition-related intangible asset amortization.
How Have Estimates Been Moving Since Then?Since the earnings release, investors have witnessed a downward trend in estimates review.
The consensus estimate has shifted -7.5% due to these changes.
VGM ScoresAt this time, Lowe's has a nice Growth Score of B, though it is lagging a lot on the Momentum Score front with an F. However, the stock was allocated a grade of B on the value side, putting it in the top 40% for this investment strategy.
Overall, the stock has an aggregate VGM Score of C. If you aren't focused on one strategy, this score is the one you should be interested in.
OutlookEstimates have been broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. It's no surprise Lowe's has a Zacks Rank #4 (Sell). We expect a below average return from the stock in the next few months.
Performance of an Industry PlayerLowe's is part of the Zacks Retail - Home Furnishings industry. Over the past month, Somnigroup International (SGI - Free Report) , a stock from the same industry, has gained 1.2%. The company reported its results for the quarter ended June 2026 more than a month ago.
Somnigroup International reported revenues of $1.82 billion in the last reported quarter, representing a year-over-year change of -3%. EPS of $0.58 for the same period compares with $0.53 a year ago.
For the current quarter, Somnigroup International is expected to post earnings of $1.06 per share, indicating a change of +11.6% from the year-ago quarter. The Zacks Consensus Estimate has changed +2.6% over the last 30 days.
Somnigroup International has a Zacks Rank #3 (Hold) based on the overall direction and magnitude of estimate revisions. Additionally, the stock has a VGM Score of B.
Lowe's čeká, že druhá polovina roku bude podobná první, protože vyšší sazby a nejistota dál tlumí výdaje na bydlení. Zákazníci podle firmy častěji volí menší projekty místo velkých rekonstrukcí.
Retail Earnings Just Exposed a Bigger Divide in the U.S. Consumer EconomyLowe's Companies NYSE: LOW expects the second half of the year to resemble the first half as elevated interest rates and broader uncertainty continue to affect home-improvement spending, Chairman, President and Chief Executive Officer Marvin Ellison said at the Goldman Sachs Global Consumer and Retail Conference.
Ellison said the company does not expect a material change in the housing backdrop during the balance of the year, but said Lowe's believes it can grow and gain market share regardless of macroeconomic conditions. He pointed to five consecutive quarters of positive comparable sales growth and digital sales growth exceeding 15% in each of the past two quarters.
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MarketBeat Week in Review – 08/24 - 08/28More than 60% of Lowe's sales are driven by do-it-yourself customers, Ellison said. While the company's core homeowner customer has an average household income above $100,000 and roughly $400,000 in equity, those consumers have become more cautious about larger discretionary purchases amid higher interest rates and geopolitical uncertainty.
Smaller Projects Replace Some Major Renovations Ellison said homeowners are pursuing smaller, more deliberate projects rather than undertaking full kitchen or bathroom renovations at the same frequency seen before the current housing cycle. Customers may buy countertops or cabinets instead of completing an entire kitchen remodel, he said.
Why Lowe’s Could Be a Bargain Before Housing RecoversLowe's has invested in in-store kitchen, bath, appliance and flooring showrooms under its Total Home Strategy, Ellison said. He added that small- and medium-sized professional customers have remained resilient by adapting their work to consumers' budgets and project scopes.
The company sees a broad competitive landscape beyond its largest rival, according to Ellison. Lowe's estimates the home-improvement market at roughly $1 trillion, while Lowe's and its largest competitor together account for about $250 billion of that market. He said smaller regional players represent another opportunity for Lowe's to gain share.
Appliances have been a particular source of share gains, Ellison said. He said Lowe's is the only U.S. retailer capable of delivering and installing major appliances on the same day or next day in virtually every U.S. ZIP code. That capability is particularly important in “duress” purchases, such as when a refrigerator breaks and requires immediate replacement.
Pricing, Delivery and Digital Investment Ellison described the promotional environment in the second quarter as one of the most active he has seen in 25 years in home improvement, attributing it in part to companies receiving tariff refunds and using them to provide value to consumers. He characterized that activity as transitory and said Lowe's does not view it as a new normal for the category.
For the second half, he said Lowe's expects its pricing to be “virtually the same” as in the first half. The company plans to remain focused on value without becoming overly promotional, while using separate loyalty programs for DIY and professional customers to offer more targeted member promotions.
Lowe's has also invested in pricing technology after relying on manual spreadsheets when Ellison joined the company in 2018, he said. The retailer now has more sophisticated pricing systems and processes, according to Ellison.
The company’s approximately 1,750 U.S. stores serve as both shopping destinations and fulfillment nodes. Between 60% and 80% of online order fulfillment comes from stores, depending on product category and season, Ellison said. Lowe's is also extending its big-and-bulky delivery network beyond appliances to categories such as riding lawnmowers, grills and patio furniture.
Digital sales rose more than 15% for two straight quarters, supported by improved fulfillment, same-day delivery and the company’s digital marketplace, Ellison said. He said the marketplace allows Lowe's to offer products serving value-oriented and luxury customers without owning the inventory.
Ellison also highlighted Lowe's Mylow artificial intelligence tool. Customers and associates have submitted more than 25 million questions through the tool, he said. Customers using the AI assistant have conversion rates three times higher than those who do not use it, while associates using it have contributed to a 200-basis-point improvement in customer satisfaction, according to Ellison.
Acquisitions Target Construction Opportunity Ellison said Lowe's acquisitions of ADG and FBM expanded the company into construction-related markets where it previously had little exposure, particularly single-family and multifamily construction. ADG focuses primarily on flooring, countertops and cabinets, while FBM focuses on drywall, ceiling systems and insulation.
Combined with Lowe's appliance, faucet and fixture offerings, the businesses create what Ellison called an “interior solutions platform” for builders. Lowe's is already conducting pilots designed to offer builders a broader collection of interior products and potentially help reduce construction and closing times, he said.
Ellison acknowledged that elevated mortgage rates have pressured residential construction. However, he said about 55% of FBM revenue comes from commercial construction, including data centers, sports venues, hotels and university projects. Data-center build-outs are currently one of FBM’s largest segments, he said.
Looking ahead, Lowe's plans to remain opportunistic about tuck-in acquisitions that complement its interior-solutions strategy, Ellison said. The company also plans to prioritize debt reduction toward a 2.75-times leverage ratio, which he said it expects to reach around the midpoint of next year, while continuing dividend payments and potentially revisiting share repurchases after reaching that leverage target.
About Lowe's Companies (NYSE:LOW)Lowe's Companies, Inc is a home improvement retailer that serves homeowners, renters, and professional contractors primarily through stores and digital platforms in the United States. The company sells a broad selection of products for maintenance, repair, remodeling, and construction projects.
Its merchandise includes appliances, tools, hardware, lumber, building materials, plumbing and electrical supplies, paint, flooring, lighting, kitchen and bathroom products, outdoor living items, lawn and garden products, and seasonal goods.
This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected].
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Lowe’s má podle článku silnější krytí dividendy než Home Depot díky vyššímu volnému peněžnímu toku a širší rezervě proti slabému trhu s bydlením. Home Depot sice má silný Pro segment, ale jeho krytí dividendy se ztenčilo.
With existing home sales at historic lows and renovations drying up, both Home Depot and Lowe's face the same brutal headwind, but only one dividend has the cushion and growth runway to outlast a frozen housing market.
For an income investor weighing Home Depot (NYSE:HD | HD Price Prediction) against Lowe’s (NYSE:LOW), the real question is which dividend holds up better when the housing market stays frozen. Existing home sales sit at 3.98M annualized, the lowest reading in the trailing twelve-month history and inside what the series classifies as the soft range associated with high mortgage rates. Home Depot’s CFO said housing turnover has “never been lower as a percentage of the housing stock”. When people stop moving, they stop renovating. That is the identical headwind facing both payouts, and it sharpens the question of which one is actually safer.
Dividend Coverage Against Free Cash Flow Home Depot generates a free cash flow yield of 4.11% against a dividend yield of 2.97%. Full-year free cash flow was $12.65B, down 22.5% from the prior period. The annualized dividend commitment sits at $9.32 per share against adjusted diluted EPS guidance of flat to +4.0% off $14.69. Covered, but the cushion has thinned as free cash flow shrank.
Lowe’s runs a free cash flow yield of 6.93% against a dividend yield of 2.39%. Quarterly free cash flow was $3.1 billion, and dividends paid were $673 million. Adjusted EPS guidance of approximately $12.25 covers an annualized payout of $5 multiple times over. If comparable sales stay flat, as Lowe’s already guides, coverage barely moves. Lowe’s wins this one on the strength of the gap between cash generation and the committed payout.
Pro Versus DIY Customer Mix Home Depot has spent aggressively to lean into the professional contractor. The SRS Distribution footprint runs 1,340+ locations, and management said “Pro posted positive comps and outperformed DIY”. Comparable sales grew 1.7%, and big-ticket transactions over $1,000 rose 2.4%.
Lowe’s remains more exposed to the discretionary DIY customer who cut back first. CEO Marvin Ellison acknowledged “discretionary DIY demand remains under pressure”, and comparable sales grew just 0.2%. The Pro pivot is real, but it is smaller and less mature than Home Depot’s. In a frozen housing market where repair and small-ticket work carries the load, Home Depot’s customer mix wins.
Growth Record of the Payout Home Depot has paid dividends for 156 consecutive quarters, an exceptional record. The most recent raise took the quarterly payout from $2.30 to $2.33, an increase of 1.3%. Continuity is elite. Growth has decelerated to a token bump.
Lowe’s carries Dividend Aristocrat status, and the latest raise took the quarterly payout from $1.20 to $1.25. The trailing progression shows steady step-ups from 1.05 to 1.10 to 1.15 to 1.20 to 1.25. Lowe’s is raising faster off a lower payout ratio, and the runway is longer (we ranked ten of the longest-running raisers by valuation in a free report here: 10 Dividend Kings to Buy Now and Hold Forever). Lowe’s wins.
Verdict Lowe’s is the better dividend for an income-focused investor at or near retirement. It carries the wider free-cash-flow cushion, the larger and more consistent recent raises, and Aristocrat status. Home Depot’s payout is safer than most in retail, but the payout ratio is higher, the last raise was minimal, and the stock has been under heavier pressure, down 25% over the trailing year versus Lowe’s at 26.27%. A low payout ratio is only reassuring if earnings hold, and Lowe’s flat comparable sales guide keeps coverage intact even if the housing freeze extends. What would flip the verdict: a sustained drop in mortgage rates that reignites housing turnover and larger remodels. In that scenario, Home Depot’s Pro-heavy mix and SRS platform take the win. Absent that catalyst, Lowe’s is the more defensible income holding.
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Lowe's minulý týden spadl na nové 52týdenní minimum 199 USD a za poslední rok odepsal zhruba 25 %. Firma zároveň snížila celoroční výhled na spodní hranici rozpětí.
Lowe's Companies (LOW -1.10%) hit a fresh 52-week low at $199 last week. This has been a rough stretch for the stock, which is down roughly 25% over the past year and is well off its 52-week high of $293. The sell-off raises the question: Is this a stock worth buying at a discount, or should investors heed the warning?
Image source: Getty Images.
Bearish guidance amid tough economic conditions Lowe's reported its second-quarter earnings in August, and all seemed fine. The company's sales grew more than 8% year over year to $26 billion, and adjusted diluted earnings per share (EPS) exceeded estimates at $4.40.
The problem was management's trimmed guidance. Lowe's pulled back its full-year outlook to the low end of its sales range. Management also anticipates flat comparable sales and lower adjusted EPS at $12.25. There's a lot of pressure on homeowners and their wallets right now, causing a slowing in do-it-yourself projects. High mortgage rates and tariffs also don't help the current situation.
The issues Lowe's is facing are more macroeconomic in nature than problems within the company itself. This leads me to lean bullish in the long term. The consensus among analysts is also positive, with most rating the stock as a moderate buy or buy, at an average price target of $253.
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Lowe's is now trading at a very reasonable price. Because the stock has declined so much in the past 12 months, its forward and trailing P/E ratios are now at 16 and 17, respectively. Lowe's PEG ratio is around 1.36, indicating a fair value. The company's market cap has shrunk from nearly $150 billion to roughly $113 billion in 2026. Notably, the contracting valuation metrics increased the dividend yield to about 2.45% as of this writing.
Lowe's dividend has grown consistently for more than a quarter-century. The bull case for the home improvement retailer is that, as high interest rates slow home turnover, existing owners will eventually resume making improvements to the properties they already occupy. Bears, however, have noted that Lowe's guidance has already been cut once this year, and inflation and tariffs remain foreboding and unpredictable concerns.
A good business for income investors Ultimately, Lowe's business isn't internally broken. Both its Pro and digital segments are growing, and guidance was simply moved to the lower end of the range rather than fully cut. The stock's decline reflects investor uncertainty among challenging economic conditions. Long-term income investors with the patience to ride this housing cycle have an interesting entry point into Lowe's right now. For those seeking more growth and upside, Lowe's is missing a near-term catalyst. It's a solid company for dividend seekers, but just as some people find DIY frustrating, growth-oriented investors may view Lowe's in that same vein.
Allen Mooney & Barnes Investment Advisors LLC ve 2. čtvrtletí snížila podíl ve společnosti Lowe’s o 6,6 % a prodala 4 362 akcií. Po transakci držela 61 811 akcií na hodnotu 13,629 milionu USD.
Allen Mooney & Barnes Investment Advisors LLC decreased its holdings in Lowe’s Companies, Inc. (NYSE:LOW – Free Report) by 6.6% in the 2nd quarter, according to the company in its most recent 13F filing with the Securities and Exchange Commission (SEC). The fund owned 61,811 shares of the home improvement retailer’s stock after selling 4,362 shares during the quarter. Lowe’s Companies comprises 2.1% of Allen Mooney & Barnes Investment Advisors LLC’s investment portfolio, making the stock its 19th largest holding. Allen Mooney & Barnes Investment Advisors LLC’s holdings in Lowe’s Companies were worth $13,629,000 as of its most recent SEC filing.
Other large investors have also recently bought and sold shares of the company. Norges Bank acquired a new position in Lowe’s Companies in the 4th quarter valued at $1,993,697,000. Price T Rowe Associates Inc. MD boosted its holdings in Lowe’s Companies by 45.2% in the 4th quarter. Price T Rowe Associates Inc. MD now owns 6,555,565 shares of the home improvement retailer’s stock valued at $1,580,941,000 after purchasing an additional 2,039,343 shares in the last quarter. J. Stern & Co. LLP increased its position in Lowe’s Companies by 7,814.9% during the 4th quarter. J. Stern & Co. LLP now owns 1,490,369 shares of the home improvement retailer’s stock worth $359,417,000 after purchasing an additional 1,471,539 shares during the period. Eurizon Capital SGR S.p.A. acquired a new position in Lowe’s Companies during the 4th quarter worth approximately $308,683,000. Finally, Viking Global Investors LP purchased a new position in shares of Lowe’s Companies during the 4th quarter worth approximately $219,948,000. Institutional investors and hedge funds own 74.06% of the company’s stock.
Wall Street Analysts Forecast Growth LOW has been the topic of a number of analyst reports. Weiss Ratings downgraded Lowe’s Companies from a “hold (c)” rating to a “hold (c-)” rating in a research note on Monday, August 17th. UBS Group dropped their price target on Lowe’s Companies from $285.00 to $275.00 and set a “buy” rating for the company in a research report on Thursday, August 20th. Truist Financial decreased their price objective on shares of Lowe’s Companies from $255.00 to $254.00 and set a “buy” rating on the stock in a research report on Thursday, August 20th. Bank of America dropped their target price on shares of Lowe’s Companies from $260.00 to $257.00 and set a “neutral” rating for the company in a report on Thursday, May 21st. Finally, Benchmark assumed coverage on shares of Lowe’s Companies in a research report on Tuesday, May 12th. They set a “hold” rating for the company. Twenty-three equities research analysts have rated the stock with a Buy rating, eleven have issued a Hold rating and two have given a Sell rating to the company’s stock. Based on data from MarketBeat, the stock has an average rating of “Moderate Buy” and an average price target of $258.53.
Read Our Latest Research Report on Lowe’s Companies Lowe’s Companies Trading Up 1.1% Shares of LOW stock opened at $202.09 on Friday. The firm has a 50-day moving average price of $213.80 and a 200 day moving average price of $228.09. Lowe’s Companies, Inc. has a twelve month low of $199.34 and a twelve month high of $293.06. The company has a market capitalization of $113.38 billion, a price-to-earnings ratio of 17.08, a PEG ratio of 2.66 and a beta of 0.85.
Lowe’s Companies (NYSE:LOW – Get Free Report) last released its earnings results on Wednesday, August 19th. The home improvement retailer reported $4.40 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $4.22 by $0.18. Lowe’s Companies had a net margin of 7.34% and a negative return on equity of 75.67%. The company had revenue of $25.96 billion for the quarter, compared to analyst estimates of $26.13 billion. During the same period in the prior year, the firm earned $4.33 EPS. The firm’s quarterly revenue was up 8.3% on a year-over-year basis. Lowe’s Companies has set its FY 2026 guidance at 12.250-12.250 EPS. As a group, research analysts predict that Lowe’s Companies, Inc. will post 12.26 earnings per share for the current year.
Lowe’s Companies Announces Dividend The business also recently declared a quarterly dividend, which will be paid on Wednesday, November 4th. Investors of record on Wednesday, October 21st will be given a dividend of $1.25 per share. The ex-dividend date of this dividend is Wednesday, October 21st. This represents a $5.00 annualized dividend and a yield of 2.5%. Lowe’s Companies’s dividend payout ratio is 42.27%.
Insiders Place Their Bets In other news, EVP Janice Dupré sold 14,150 shares of the business’s stock in a transaction on Tuesday, June 16th. The shares were sold at an average price of $221.90, for a total transaction of $3,139,885.00. Following the completion of the sale, the executive vice president directly owned 39,785 shares of the company’s stock, valued at $8,828,291.50. The trade was a 26.24% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available at this link. Also, EVP Juliette Pryor sold 9,330 shares of the company’s stock in a transaction on Wednesday, June 17th. The stock was sold at an average price of $224.81, for a total value of $2,097,477.30. Following the sale, the executive vice president owned 16,142 shares of the company’s stock, valued at approximately $3,628,883.02. The trade was a 36.63% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Insiders have sold a total of 25,980 shares of company stock valued at $5,796,937 over the last quarter. Company insiders own 0.29% of the company’s stock.
Trending Headlines about Lowe’s Companies Here are the key news stories impacting Lowe’s Companies this week:
Positive Sentiment: Lowe’s Foundation launched the “Building Futures Skilled Trades Coalition,” bringing together NVIDIA, AT&T, Bank of America, General Motors, Carrier, DEWALT and Duke Energy to help train one million skilled-trades workers by 2035. The initiative could strengthen Lowe’s long-term customer and labor pipeline while supporting demand for home-improvement projects. Nvidia Is Now Paying to Train Plumbers, and the Stock That Should Benefit Most Just Hit a 52-Week Low Neutral Sentiment: Lowe’s kicked off the second year of its “Earn Your Sunday” NFL campaign, adding Myles Garrett and Jordan Love to its roster of football ambassadors. The marketing effort may increase brand engagement and project-related traffic, but its direct earnings impact is uncertain. Lowe’s Kicks Off Year Two of Earn Your Sunday Neutral Sentiment: A comparison of Lowe’s and Home Depot dividends highlighted concerns about dividend coverage and the pace of future increases for at least one retailer. The report could make income-focused investors more cautious, although the provided details do not clearly identify Lowe’s as the company with the weaker coverage. Home Depot vs. Lowe’s: One Dividend Looks Much Stronger Under the Hood Negative Sentiment: Mortgage rates reached a one-year high following a global bond-market sell-off. Higher financing costs can reduce housing activity and delay big-ticket renovations, pressuring sales at Lowe’s and Home Depot. Mortgage Rates Just Hit a 1-Year High Negative Sentiment: Zacks Research reduced several Lowe’s earnings forecasts, including FY2027 EPS to $12.25 from $12.45, FY2028 to $12.94 from $13.60 and FY2029 to $13.90 from $14.62. Although one later-quarter estimate increased slightly, the broad downward revisions signal weaker expected profit growth and are likely weighing on the stock. Lowe’s Companies Analyst Estimates Lowe’s Companies Profile (Free Report)
Lowe’s Companies, Inc is a leading home improvement retailer that operates large-format stores and digital channels serving both do-it-yourself homeowners and professional contractors. The company offers a broad assortment of products including building materials, lumber, appliances, tools and hardware, plumbing and electrical supplies, paint, flooring, kitchen and bath fixtures, outdoor and garden products, and home decor. Lowe’s also provides a range of services such as installation, home improvement financing, tool and equipment rental, and contractor-focused sales programs.
Operations are centered on a nationwide brick-and-mortar store network supported by distribution centers and an e-commerce platform that enables online ordering, delivery and in-store pickup.
Featured Stories Five stocks we like better than Lowe’s Companies The Path to $230 Billion: Broadcom Outlines the Next Phase of Its AI Growth Story NVIDIA’s Hugging Face Deal Raises a Bigger Question About Its AI Moat Now Dropping the Dough: Yum! Brands Strategically Trims the Fat These 3 Stock Charts Just Flashed the Dreaded Death Cross Pattern Want to see what other hedge funds are holding LOW? Visit HoldingsChannel.com to get the latest 13F filings and insider trades for Lowe’s Companies, Inc. (NYSE:LOW – Free Report).
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Lowe’s zvýšil čtvrtletní dividendu o 4 % na 1,25 USD a má nižší výplatní poměr než Home Depot, takže jeho dividenda působí bezpečněji. Home Depot nabízí vyšší dividendový výnos 2,87 %, ale růst dividendy zpomalil na zhruba 1,3 %.
Home Depot and Lowe's both just paid shareholders, but the headline yield on one of them masks a coverage story that points in a very uncomfortable direction for income investors counting on future raises.
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Home improvement’s dividend heavyweights just wrote checks to shareholders, and the scorecards tell very different stories. Home Depot (NYSE:HD | HD Price Prediction) offers the fatter yield and the bigger absolute payout, while Lowe’s (NYSE:LOW) counters with a longer growth streak, a leaner payout ratio, and free cash flow that towers over its distribution. With both stocks trading well off last year’s highs, the dividend math matters more than usual.
Home Depot’s Latest Payment: Higher Yield, Slower Raise Home Depot’s board declared a $2.33 quarterly dividend on August 20, 2026, with an ex-dividend date of September 3, 2026 and a payment date of September 17, 2026. That matches the prior two quarters and works out to an annualized rate of $9.32 per share.
The reset earlier this year lifted the payout from $2.30 to $2.33, a roughly 1.3% bump that ranks as one of Home Depot’s most restrained raises in years. For context, the quarterly amount stood at $1.65 as recently as 2021 and $1.03 in 2018.
At a recent price of $319.64, the yield sits around 2.87%, comfortably above Lowe’s. Home Depot has now paid a cash dividend for its 156th consecutive quarter, nearly 39 years without interruption. Coverage is adequate but not luxurious: the $9.32 annualized payout consumes roughly 63% of fiscal 2025 adjusted EPS of $14.69, and management guided fiscal 2026 EPS to approximately flat to 4% growth versus fiscal 2025.
Lowe’s Latest Payment: Smaller Check, Bigger Raise Lowe’s went the other way. The company paid $1.25 per share on August 5, 2026, up from $1.20 the prior quarter. That is a full 4% hike, more than triple Home Depot’s percentage raise, and it pushes the annualized forward dividend to $5.00.
On the Q2 earnings call, CFO commentary framed the payment as reinforcing Lowe’s “commitment to returning capital to shareholders and our status as a dividend aristocrat.” The company has raised its payout for more than 60 straight years, putting it in the rarefied Dividend King club that Home Depot cannot claim.
At $201.37, the yield lands near 2.35%. That is thinner than Home Depot’s on the surface, but the coverage picture is meaningfully stronger. Lowe’s fiscal 2026 adjusted EPS guidance of approximately $12.25 implies a payout ratio near 41%, well below Home Depot’s 63%.
Free Cash Flow: Where Lowe’s Pulls Away Cash generation widens the gap further. Lowe’s produced $3.1 billion in free cash flow in Q2 alone against $673 million in dividends paid, a coverage ratio north of four times. For the trailing fiscal year, operating cash flow reached $9.86 billion against dividend payouts of $2.64 billion.
Home Depot’s dividend bill is larger in absolute terms. Management disclosed approximately $2.3 billion in dividends paid during Q2 alone, alongside $880 million in capital expenditures. Return on invested capital slipped to 24.8% from 27.2% a year earlier, while Lowe’s posted 25.5% ROIC and management targeted 2.75 times adjusted debt-to-EBITDA by mid-2027.
Scorecard Verdict Both stocks have been punished by the housing slowdown. Home Depot is down 19.28% over the past year, and Lowe’s has slid 20.9%. Home Depot trades near 22 times earnings, while Lowe’s sits closer to 17 times, giving income investors a cheaper entry point on the smaller check.
Home Depot wins on yield and payment longevity. Lowe’s wins on growth streak, dividend growth rate this cycle, payout ratio, free cash flow coverage, and valuation. Grading strictly on the dividend itself, Lowe’s earns the higher scorecard mark. Investors who prioritize current income today may still prefer Home Depot’s 2.87% yield, but the safer, faster-growing payout, the one better positioned to keep compounding through the housing cycle, belongs to Lowe’s.
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Lowe's zvýšil růst v segmentu Pro díky FBM a ADG, zatímco online prodeje ve 2. čtvrtletí vzrostly o 15,7 % a Home Services dál rostly. Slabší poptávka v DIY a snížený výhled na zisk ale drží akcii pod tlakem.
Key Takeaways Lowe's valuation discount is offset by softer DIY demand, housing pressure and reduced earnings guidance.Pro growth is expanding through FBM and ADG, adding fulfillment, digital tools and installation capabilities.Online sales rose 15.7%, while Home Services grew and MyLowe's Rewards topped 30 million members. Lowe's Companies, Inc. (LOW - Free Report) is trading at a discount to key benchmarks, but that discount comes with weaker near-term demand and earnings expectations. The central question is whether its expanding Pro platform can offset a still-cautious DIY customer.
Pro, online and Home Services are adding growth avenues, while soft housing activity and lower guidance limit near-term visibility. That mix creates a relative valuation discount, but timing remains important.
Lowe's Valuation Offers a Relative DiscountLOW trades at 16.1X forward 12-month earnings, below the Zacks sub-industry's 19.2X, the Zacks Retail-Wholesale sector's 22.7X and its five-year median of 17.5X. The gap gives investors a cheaper entry multiple than those reference points.
Image Source: Zacks Investment Research
The discount is not automatically a bargain. Lowe's fiscal 2026 adjusted earnings guidance was reduced to about $12.25 per share, while third-quarter adjusted earnings are expected to decline roughly 7% year over year. A lower multiple therefore partly reflects weaker near-term earnings momentum.
Pro Growth Gives LOW a Durable Demand EngineLowe's is broadening its Pro reach through Foundation Building Materials and Artisan Design Group. FBM adds faster fulfillment, digital tools, trade credit and cross-selling opportunities, while ADG expands design, distribution and installation capabilities for builders and property managers.
The Home Depot, Inc. (HD - Free Report) also reported positive Pro comparable sales that outperformed DIY in its second quarter, offering another sign that professional demand has held up better than DIY among major home-improvement retailers. For Lowe's, deeper capabilities with larger Pros could become more valuable as construction activity improves.
Digital and Services Broaden Lowe's UpsideOnline sales increased 15.7% in the second quarter, while Home Services delivered another quarter of growth. MyLowe's Rewards has more than 30 million members, giving Lowe's a larger base for targeted offers and repeat engagement.
Mylow is another conversion tool. Management said online shoppers who use the artificial intelligence shopping agent convert at three times the rate of those who do not. Better digital engagement, installation services and fulfillment can help Lowe's capture a larger share of project spending.
DIY and Housing Risks Keep LOW in CheckComparable transactions fell 2.1% in the second quarter as customers favored repair, maintenance and smaller projects over larger discretionary work. Lowe's reduced fiscal 2026 comparable-sales guidance to flat from its prior flat-to-up-2% range.
Housing weakness also limits the near-term payoff from expansion. ADG is fully exposed to residential construction, while about 45% of FBM is tied to that market. Builders FirstSource, Inc. (BLDR - Free Report) reported an 8.8% second-quarter sales decline, primarily due to lower housing starts and related headwinds, underscoring the pressure facing construction-linked demand.
Cash Flow Supports Lowe's Long-Term StrategyLowe's generated about $7 billion of operating cash flow in the first six months of fiscal 2026 and spent $1.1 billion on capital expenditures. It also paid $1.3 billion in dividends and repaid $2.4 billion of debt.
That liquidity supports continued investment without ignoring balance-sheet discipline. Lowe's ended the second quarter with $3.2 billion in cash and $5 billion of undrawn revolving-credit capacity, while management expects to reach its 2.75-times leverage target by mid-2027.
LOW's Mixed Signals Argue for PatienceLowe's relative valuation discount and expanding Pro, digital and services platforms support the long-term case, but weaker DIY demand, housing pressure and reduced earnings expectations keep the near-term risk-reward mixed.
LOW currently carries a Zacks Rank #4 (Sell). Its VGM Score of B, Growth Score of B and Momentum Score of B indicate favorable characteristics in those styles, while the Value Score of C is less favorable than the B grades. Because Zacks Style Scores are designed to complement rather than override the Zacks Rank, the current combination argues for patience until the earnings-estimate backdrop improves. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Bank of New York Mellon ve 2. čtvrtletí zvýšila svůj podíl v Lowe’s o 1,4 % na 4 104 782 akcií. Lowe’s zároveň oznámila zisk na akcii (EPS) 4,40 USD, nad odhadem 4,22 USD, a tržby 25,96 miliardy USD.
Bank of New York Mellon Corp increased its position in shares of Lowe’s Companies, Inc. (NYSE:LOW – Free Report) by 1.4% in the 2nd quarter, according to the company in its most recent 13F filing with the Securities & Exchange Commission. The institutional investor owned 4,104,782 shares of the home improvement retailer’s stock after acquiring an additional 57,167 shares during the quarter. Bank of New York Mellon Corp owned about 0.73% of Lowe’s Companies worth $905,063,000 as of its most recent SEC filing.
Other hedge funds and other institutional investors also recently bought and sold shares of the company. Brighton Jones LLC increased its holdings in shares of Lowe’s Companies by 119.7% during the fourth quarter. Brighton Jones LLC now owns 31,965 shares of the home improvement retailer’s stock valued at $7,889,000 after acquiring an additional 17,413 shares in the last quarter. Revolve Wealth Partners LLC boosted its stake in Lowe’s Companies by 31.6% in the 4th quarter. Revolve Wealth Partners LLC now owns 1,078 shares of the home improvement retailer’s stock worth $266,000 after purchasing an additional 259 shares in the last quarter. Sivia Capital Partners LLC grew its position in Lowe’s Companies by 22.3% during the 2nd quarter. Sivia Capital Partners LLC now owns 1,534 shares of the home improvement retailer’s stock worth $340,000 after purchasing an additional 280 shares during the last quarter. United Bank grew its position in Lowe’s Companies by 1.3% during the 2nd quarter. United Bank now owns 12,124 shares of the home improvement retailer’s stock worth $2,690,000 after purchasing an additional 155 shares during the last quarter. Finally, Schnieders Capital Management LLC. increased its stake in Lowe’s Companies by 13.1% during the 2nd quarter. Schnieders Capital Management LLC. now owns 2,378 shares of the home improvement retailer’s stock valued at $528,000 after purchasing an additional 275 shares in the last quarter. Hedge funds and other institutional investors own 74.06% of the company’s stock.
Lowe’s Companies Price Performance
Shares of LOW stock opened at $217.72 on Friday. Lowe’s Companies, Inc. has a 1-year low of $199.40 and a 1-year high of $293.06. The company has a market cap of $122.08 billion, a price-to-earnings ratio of 18.40, a PEG ratio of 2.85 and a beta of 0.86. The stock has a 50 day simple moving average of $216.13 and a 200-day simple moving average of $233.11.
Lowe’s Companies (NYSE:LOW – Get Free Report) last announced its earnings results on Wednesday, August 19th. The home improvement retailer reported $4.40 earnings per share (EPS) for the quarter, beating the consensus estimate of $4.22 by $0.18. The business had revenue of $25.96 billion for the quarter, compared to analyst estimates of $26.13 billion. Lowe’s Companies had a net margin of 7.34% and a negative return on equity of 75.67%. The company’s revenue for the quarter was up 8.3% compared to the same quarter last year. During the same quarter last year, the business earned $4.33 earnings per share. Lowe’s Companies has set its FY 2026 guidance at 12.250-12.250 EPS. Analysts anticipate that Lowe’s Companies, Inc. will post 12.26 earnings per share for the current fiscal year.
Lowe’s Companies Increases Dividend
The company also recently disclosed a quarterly dividend, which was paid on Wednesday, August 5th. Investors of record on Wednesday, July 22nd were issued a $1.25 dividend. This represents a $5.00 annualized dividend and a yield of 2.3%. The ex-dividend date was Wednesday, July 22nd. This is a positive change from Lowe’s Companies’s previous quarterly dividend of $1.20. Lowe’s Companies’s payout ratio is presently 42.27%.
Wall Street Analysts Forecast Growth
A number of brokerages recently issued reports on LOW. HSBC reduced their target price on Lowe’s Companies from $260.00 to $220.00 and set a “hold” rating for the company in a research note on Thursday, May 21st. DA Davidson reissued a “neutral” rating and issued a $245.00 price objective on shares of Lowe’s Companies in a report on Wednesday. Weiss Ratings cut Lowe’s Companies from a “hold (c)” rating to a “hold (c-)” rating in a research note on Monday. Citigroup decreased their target price on Lowe’s Companies from $267.00 to $260.00 and set a “buy” rating for the company in a report on Thursday. Finally, Stifel Nicolaus decreased their target price on Lowe’s Companies from $270.00 to $220.00 and set a “hold” rating for the company in a report on Monday, May 18th. Twenty-three analysts have rated the stock with a Buy rating, eleven have assigned a Hold rating and two have assigned a Sell rating to the stock. According to MarketBeat.com, the stock currently has an average rating of “Moderate Buy” and an average price target of $259.37.
Get Our Latest Analysis on LOW
Trending Headlines about Lowe’s Companies
Here are the key news stories impacting Lowe’s Companies this week:
Positive Sentiment: Lowe’s reported adjusted EPS of $4.40, ahead of the $4.22 analyst consensus, while revenue increased 8.3% year over year to $25.96 billion. Comparable sales rose 0.2%, broadly matching expectations, and digital and Pro-customer growth provided support. Lowe’s Reports Second Quarter 2026 Sales and Earnings Results
Positive Sentiment: Several analysts remain bullish despite trimming their targets. Telsey Advisory reduced its target to $260 but maintained an “outperform” rating, while Truist, UBS, and KeyCorp retained “buy” or bullish ratings. Analysts cited potential acceleration in comparable sales during the second half and continued strategic progress. Analysts Revise Forecasts on Lowe’s After Q2 Earnings
Neutral Sentiment: Lowe’s received an approximately $80 million tariff refund, improving current-period results, but management said the benefit will not be used for price reductions. Because the refund is a one-time item, investors may place limited value on it for forecasting recurring earnings. Lowe’s Received an $80 Million Tariff Refund
Negative Sentiment: The company reset fiscal 2026 guidance to the low end of its prior range, calling for approximately $92 billion in revenue and $12.25 adjusted EPS, below consensus expectations of roughly $93.3 billion and $12.88 EPS. Management cited persistent weakness in discretionary do-it-yourself spending, elevated mortgage rates, and a soft housing market. Lowe’s Gives Muted Outlook
Negative Sentiment: UBS, Mizuho, and Telsey lowered their price targets following the results, reflecting reduced near-term earnings expectations. Lowe’s also continues to trail Home Depot on comparable-sales momentum, increasing concerns about market-share and product-mix disadvantages. Lowe’s Widens the Gap With Home Depot
Insiders Place Their Bets
In other Lowe’s Companies news, EVP Margrethe R. Vagell sold 2,500 shares of the business’s stock in a transaction that occurred on Thursday, June 18th. The stock was sold at an average price of $223.83, for a total transaction of $559,575.00. Following the completion of the sale, the executive vice president directly owned 20,220 shares in the company, valued at approximately $4,525,842.60. The trade was a 11.00% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, EVP Janice Dupre sold 14,150 shares of the stock in a transaction that occurred on Tuesday, June 16th. The shares were sold at an average price of $221.90, for a total value of $3,139,885.00. Following the transaction, the executive vice president directly owned 39,785 shares of the company’s stock, valued at $8,828,291.50. The trade was a 26.24% decrease in their position. The SEC filing for this sale provides additional information. In the last three months, insiders sold 25,980 shares of company stock worth $5,796,937. Corporate insiders own 0.29% of the company’s stock.
Lowe’s Companies Profile
(Free Report)
Lowe’s Companies, Inc is a leading home improvement retailer that operates large-format stores and digital channels serving both do-it-yourself homeowners and professional contractors. The company offers a broad assortment of products including building materials, lumber, appliances, tools and hardware, plumbing and electrical supplies, paint, flooring, kitchen and bath fixtures, outdoor and garden products, and home decor. Lowe’s also provides a range of services such as installation, home improvement financing, tool and equipment rental, and contractor-focused sales programs.
Operations are centered on a nationwide brick-and-mortar store network supported by distribution centers and an e-commerce platform that enables online ordering, delivery and in-store pickup.
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Want to see what other hedge funds are holding LOW? Visit HoldingsChannel.com to get the latest 13F filings and insider trades for Lowe’s Companies, Inc. (NYSE:LOW – Free Report).
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Lowe's (LOW - Free Report) came out with quarterly earnings of $4.4 per share, beating the Zacks Consensus Estimate of $4.22 per share. This compares to earnings of $4.33 per share a year ago. These figures are adjusted for non-recurring items.
This quarterly report represents an earnings surprise of +4.27%. A quarter ago, it was expected that this home improvement retailer would post earnings of $2.96 per share when it actually produced earnings of $3.03, delivering a surprise of +2.36%.
Over the last four quarters, the company has surpassed consensus EPS estimates four times.
Lowe's, which belongs to the Zacks Retail - Home Furnishings industry, posted revenues of $25.96 billion for the quarter ended July 2026, missing the Zacks Consensus Estimate by 0.68%. This compares to year-ago revenues of $23.96 billion. The company has topped consensus revenue estimates two times over the last four quarters.
The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call.
Lowe's shares have lost about 10.6% since the beginning of the year versus the S&P 500's gain of 12.4%.
What's Next for Lowe's?While Lowe's has underperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock?
There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately.
Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions.
Ahead of this earnings release, the estimate revisions trend for Lowe's was unfavorable. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #4 (Sell) for the stock. So, the shares are expected to underperform the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $3.12 on $22.63 billion in revenues for the coming quarter and $12.43 on $92.85 billion in revenues for the current fiscal year.
Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Retail - Home Furnishings is currently in the bottom 29% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1.
Another stock from the same industry, Lovesac (LOVE - Free Report) , has yet to report results for the quarter ended July 2026.
This company is expected to post quarterly loss of $0.39 per share in its upcoming report, which represents a year-over-year change of +13.3%. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days.
Lovesac's revenues are expected to be $163.39 million, up 1.8% from the year-ago quarter.
Lowe's ponechal celoroční výhled, ale posunul ho na spodní hranici: očekává tržby 92 miliard USD, srovnatelné tržby beze změny a upravený zisk na akcii 12,25 USD kvůli tlaku na výdaje za domácí projekty. Akcie v premarketu klesly asi o 2 %.
Lowe's on Wednesday reported mixed results as the home improvement retailer said it saw "pressure" in spending on projects.
Though the company did not cut its full-year guidance, it updated its outlook to the bottom end of its prior guidance. It now expects total sales of $92 billion, compared to $92 billion to $94 billion previously, and comparable sales to be flat, versus flat to up 2%. It expects adjusted earnings per share for the year of $12.25, versus $12.25 to $12.75 previously.
Shares of Lowe's fell about 2% in premarket trading.
Here's how the company performed in its second fiscal quarter compared with what Wall Street was expecting, according to a survey of analysts by LSEG:
Earnings per share: $4.40 adjusted, it was not immediately clear if it was comparable to the $4.22 expectedRevenue: $25.96 billion vs. $26.16 billion expectedFor the quarter, Lowe's reported net income of $2.4 billion, or $4.27 per share, roughly the same as the year-ago period. Excluding one-time factors and including tariff refund benefits, the company reported adjusted earnings of $4.40 per share.
Lowe's also said tariff refunds provided an 11 cent boost to its earnings per share this quarter.
The company reported total sales of $25.96 billion for the quarter, up from $23.96 billion the year prior. Comparable sales were up 0.2%, due in part to strong performance in its pro and home services sales, according to the company.
Lowe's also saw a 15.7% increase in online sales, though it added that performance was partially offset by macroeconomic pressures for the do-it-yourself customers.
"While the near-term remains dynamic, our teams are executing at a high level, advancing our Total Home strategy and investing to drive growth and profitability," CEO Marvin Ellison said in a statement.
The earnings come as the home improvement retailer grapples with a slower housing market and a more cautious consumer.
Lowe's rival Home Depot said in its earnings report on Tuesday that the company did not see customers returning to big projects and continues to operate in "frozen housing market conditions."
Lowe’s zveřejní hospodářské výsledky před otevřením trhu ve středu; analytici čekají EPS 4,23 USD a tržby 26,12 miliardy USD. Citi, Piper Sandler, RBC, Wells Fargo i JP Morgan mezitím snížily cílové ceny.
Lowe’s Companies, Inc. (NYSE:LOW) will release its second earnings report before the opening bell on Wednesday, Aug. 19.
Analysts expect the Mooresville, North Carolina-based company to report quarterly earnings of $4.23 per share, down from $4.33 per share in the year-ago period. The consensus estimate for Lowe’s quarterly revenue is $26.12 billion. It reported $23.96 billion last year, according to Benzinga Pro.
On May 29, Lowe’s raised its quarterly dividend from $1.20 to $1.25 per share.
Lowe’s shares fell 0.1% to close at $215.64 on Tuesday.
Benzinga readers can access the latest analyst ratings on the Analyst Stock Ratings page. Readers can sort by stock ticker, company name, analyst firm, rating change or other variables.
Let’s have a look at how Benzinga’s most-accurate analysts have rated the company in the recent period.
Citigroup analyst Steven Zaccone maintained a Buy rating and cut the price target from $285 to $267 on Aug. 13, 2026. This analyst has an accuracy rate of 53%. Piper Sandler analyst Peter Keith maintained an Overweight rating and lowered the price target from $276 to $274 on Aug. 13, 2026. This analyst has an accuracy rate of 67%. RBC Capital analyst Steven Shemesh maintained a Sector Perform rating and cut the price target from $232 to $231 on Aug. 12, 2026. This analyst has an accuracy rate of 60%. Wells Fargo analyst Zachary Fadem maintained an Overweight rating and slashed the price target from $255 to $245 on Aug. 11, 2026. This analyst has an accuracy rate of 78%. JP Morgan analyst Christopher Horvers maintained an Overweight rating and cut the price target from $279 to $252 on July 31, 2026. This analyst has an accuracy rate of 70%. Latest Private Market Opportunities
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Lowe’s očekává za 2. fiskální čtvrtletí tržby 26,14 mld. USD, což je meziročně o 9,1 % více, zatímco EPS má klesnout o 2,5 % na 4,22 USD. Slabá DIY poptávka, tlak na bydlení a vyšší náklady zůstávají hlavními riziky.
Key Takeaways Lowe's Q2 revenue estimate is $26.14B, up 9.1%, while EPS is seen falling 2.5% to $4.22.Pro, online, home services and productivity initiatives could support Lowe's second-quarter sales.Weak discretionary DIY demand, housing pressure and elevated costs remain key concerns for Lowe's. As Lowe's Companies, Inc. (LOW - Free Report) prepares to unveil its second-quarter fiscal 2026 earnings on Aug. 19, before the opening bell, investors are eager to see if the company can beat market expectations.
The Zacks Consensus Estimate for revenues stands at $26.14 billion, implying 9.1% growth from the prior year. Meanwhile, the consensus mark for earnings per share has fallen by a penny to $4.22 over the past seven days, which suggests a 2.5% decline from the year-ago period.
LOW has a trailing four-quarter earnings surprise of 2.3%, on average. In the last reported quarter, this Mooresville, NC-based company’s bottom line outperformed the Zacks Consensus Estimate by a margin of 2.4%.
Image Source: Zacks Investment Research
What the Zacks Model Says About LOW’s Q2 EarningsAs investors prepare for Lowe’s second-quarter results, the question looms regarding an earnings beat or miss. Our proven model does not conclusively predict an earnings beat for Lowe’s this time. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. However, that’s not the case here.
Lowe’s has a Zacks Rank #4 (Sell) and an Earnings ESP of -0.91%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Key Factors to Observe Ahead of LOW's Q2 EarningsLowe’s second-quarter performance is likely to have benefited from sustained demand, backed by focused merchandising and promotional execution. The company entered the quarter with strength in lawn and garden and other outdoor categories and planned to keep value and innovation at the center of its offers. A broad assortment of leading brands, healthy in-stock positions and convenient delivery options may have helped Lowe’s convert seasonal traffic across stores and digital channels. Management also highlighted the continued rollout of workwear and pet assortments, which could have provided an incremental sales opportunity during the quarter.
We believe continued momentum in Lowe’s Total Home strategy may also have supported the quarter. The Pro business remained a key area of strength, with small- and medium-sized professional customers continuing to engage in repair and maintenance projects despite the difficult housing backdrop. Investments in Pro Extended Aisle, localized assortments, improved fulfillment and digital tools have expanded the company’s ability to serve these customers while simplifying the purchasing process. At the same time, enhancements to online shopping, same-day delivery and the MyLowe’s loyalty platforms are likely to have encouraged customers.
Home services and operational improvements may have provided another layer of support. Lowe’s continued to gain traction with installation and replacement projects, particularly in categories where customers value speed, convenience and professional service. Appliances also remained well positioned because of the company’s broad brand assortment, omnichannel capabilities and fast delivery and installation network. Productivity initiatives across stores and the supply chain — including AI-enabled associate tools, faster replenishment and efforts to improve product availability — may have helped Lowe’s maintain service levels and capture demand more efficiently. The integration of Foundation Building Materials and Artisan Design Group also offered opportunities for procurement efficiencies and cross-selling while extending Lowe’s reach with professional and construction customers.
That said, Lowe’s is likely to have continued to face pressure from the broader home improvement environment. Elevated interest rates, high housing costs and subdued housing turnover have kept DIY demand under strain, particularly for larger discretionary projects, while lower-income consumers have remained cautious. These demand challenges were compounded by cost pressures, including higher transportation expenses and inflation in fuel and commodity-based products.
LOW Stock Price PerformanceLowe’s, which competes with The Home Depot, Inc. (HD - Free Report) and Floor & Decor Holdings, Inc. (FND - Free Report) , has seen its shares decline 0.6% over the past three months against the industry’s rise of 9.6%. Shares of Home Depot and Floor & Decor Holdings have advanced 12.1% and 28%, respectively.
Image Source: Zacks Investment Research
Does LOW Present a Strong Case for Value Investing?Lowe’s valuation remains discounted relative to the industry. The stock currently trades at a forward 12-month P/E multiple of 16.64, below the industry average of 19.63. LOW is also trading below its own 12-month median P/E of 18.66, suggesting that the stock remains attractively valued relative to the industry and its recent historical range.
Lowe’s is trading at a discount to Home Depot (with a forward 12-month P/E ratio of 21.59) and Floor & Decor (26.24).
Image Source: Zacks Investment Research
Final Words on Lowe’s StockLowe’s enters the second-quarter earnings release with a mixed setup. Strength in Pro, online, home services and ongoing productivity initiatives could support sales, while its relatively attractive valuation may appeal to long-term investors. However, persistent weakness in discretionary DIY demand, housing-market pressures and elevated operating costs remain meaningful concerns. More importantly, the current earnings setup does not point convincingly toward an earnings beat, which limits the case for taking an aggressive position ahead of the report.
Home Depot a Lowe’s tento týden zveřejní výsledky; obchodníci čekají pohyb akcií až o 4 % v obou směrech u Home Depot a až o 5 % u Lowe’s do konce týdne. Analytici čekají růst tržeb u obou firem.
Key Takeaways
Home Depot and Lowe’s are set to report earnings this week, with traders anticipating sizable moves in the stocks.Both companies are expected to report growing sales, with business from professional contractors seen outpacing DIY spending.
Home Depot and Lowe’s are set to report earnings on Tuesday and Wednesday morning, respectively, with traders anticipating sizable moves from the home-improvement retailers’ stocks.12
Recent options pricing suggests traders see Home Depot (HD) shares swinging up to 4% in either direction by the end of the week. A move of that size from Monday afternoon’s level around $337 could see the stock rally as high as $350, recovering some of its recent losses, or slip to $324. Lowe’s (LOW) stock is seen moving up to 5%, which could drive it as high as $225, or drag it below $205.
Heading into the results, Home Depot shares are down about 2% for the year so far, while Lowe’s has plunged 11%, amid some concerns that squeezed consumers could continue to put off big-ticket spending on renovations and appliances. Home Depot was also pressured last week after the company announced CEO Ted Decker is taking a temporary medical leave of absence. Senior executive vice president Ann-Marie Campbell and CFO Richard McPhail are jointly assuming the CEO’s duties until Decker returns.3
Why This Matters to Investors
Results from Home Depot and Lowe’s could offer investors more insights into the state of the housing market, and how willing consumers are to take on big spending projects.
Bank of America analysts recently wrote that they expect spending growth from professional contractors to outpace do-it-yourself home improvement projects, which they said could favor Home Depot, as it relies more on pro sales than Lowe’s. The analysts also said both retailers are likely to have gotten a boost from tariff refunds, which could offset higher supply-chain costs.4
Analysts expect Home Depot to report adjusted earnings of $4.73 per share on a 4% year-over-year rise in revenue to $47.28 billion. Lowe’s is seen reporting adjusted EPS of $4.23 on a 9% jump in revenue to $26.09 billion. Both retailers are projected to report same-store sales growth of just under 1% for the quarter, according to estimates compiled by Visible Alpha.
Analysts are largely bullish on the stocks of both companies. Nine out of 10 analysts tracked by Visible Alpha have “buy” recommendations for Home Depot, while 10 out of 11 have bullish ratings for Lowe’s. The mean target for Home Depot at $391 would suggest roughly 16% upside from the stock’s recent level, while the $272 average target for Lowe’s would imply a 27% rise.
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Anchor Capital Advisors ve 2. čtvrtletí zvýšil svůj podíl v Lowe’s o 13,4 % na 95 564 akcií po nákupu 11 305 kusů. Hodnota pozice činila 21,071 milionu USD.
Anchor Capital Advisors LLC grew its holdings in Lowe’s Companies, Inc. (NYSE:LOW – Free Report) by 13.4% in the second quarter, according to the company in its most recent Form 13F filing with the Securities & Exchange Commission. The fund owned 95,564 shares of the home improvement retailer’s stock after buying an additional 11,305 shares during the period. Anchor Capital Advisors LLC’s holdings in Lowe’s Companies were worth $21,071,000 at the end of the most recent quarter.
Other hedge funds and other institutional investors also recently made changes to their positions in the company. Norges Bank bought a new stake in Lowe’s Companies in the 4th quarter valued at $1,993,697,000. Price T Rowe Associates Inc. MD lifted its holdings in Lowe’s Companies by 45.2% during the 4th quarter. Price T Rowe Associates Inc. MD now owns 6,555,565 shares of the home improvement retailer’s stock valued at $1,580,941,000 after purchasing an additional 2,039,343 shares during the last quarter. J. Stern & Co. LLP boosted its position in Lowe’s Companies by 7,814.9% during the fourth quarter. J. Stern & Co. LLP now owns 1,490,369 shares of the home improvement retailer’s stock worth $359,417,000 after purchasing an additional 1,471,539 shares during the period. Eurizon Capital SGR S.p.A. bought a new position in Lowe’s Companies during the fourth quarter worth $308,683,000. Finally, Vanguard Group Inc. boosted its position in Lowe’s Companies by 1.7% during the fourth quarter. Vanguard Group Inc. now owns 56,230,787 shares of the home improvement retailer’s stock worth $13,560,617,000 after purchasing an additional 924,625 shares during the period. 74.06% of the stock is currently owned by institutional investors.
Wall Street Analysts Forecast Growth Several equities analysts have recently weighed in on the stock. Telsey Advisory Group dropped their price objective on shares of Lowe’s Companies from $295.00 to $280.00 and set an “outperform” rating on the stock in a research report on Thursday, May 21st. Robert W. Baird reduced their target price on shares of Lowe’s Companies from $320.00 to $270.00 and set an “outperform” rating for the company in a report on Thursday, May 21st. Royal Bank Of Canada decreased their price target on shares of Lowe’s Companies from $232.00 to $231.00 and set a “sector perform” rating on the stock in a research note on Wednesday, August 12th. Jefferies Financial Group decreased their price target on shares of Lowe’s Companies from $305.00 to $278.00 and set a “buy” rating on the stock in a research note on Thursday, May 21st. Finally, Oppenheimer lowered their price target on shares of Lowe’s Companies from $315.00 to $275.00 and set an “outperform” rating on the stock in a report on Monday, May 18th. Twenty-three investment analysts have rated the stock with a Buy rating, eleven have given a Hold rating and two have assigned a Sell rating to the company’s stock. Based on data from MarketBeat, the stock currently has an average rating of “Moderate Buy” and a consensus target price of $262.63.
Read Our Latest Research Report on Lowe’s Companies
Key Headlines Impacting Lowe’s Companies Here are the key news stories impacting Lowe’s Companies this week:
Positive Sentiment: Lowe’s is described as trading at its lowest forward price-to-earnings multiple in more than two years. Its status as a Dividend King, along with a recent dividend increase, strengthens the long-term income-investment case. 1 Number That Makes Lowe’s Stock an Obvious Buy Before Aug. 19 Positive Sentiment: Several analysts remain moderately optimistic despite the recent underperformance. Citigroup retained a “buy” rating while lowering its price target to $267 from $285, and Wells Fargo’s reduced target of $245 still implies meaningful upside from recent levels. Citigroup Lowe’s Price Target Update Positive Sentiment: Investor articles argue that a series of downward Q2 EPS estimate revisions may have lowered expectations and created the potential for a favorable earnings surprise. The longer-term bull case remains tied to Lowe’s brand strength, home-improvement demand and operating potential. Lowe’s Q2 EPS Revisions Neutral Sentiment: Wall Street projections for the quarter ended July 2026 are focusing on key operating metrics beyond revenue and EPS. The Aug. 19 report is the next major catalyst and could determine the near-term direction of the shares. Insights Into Lowe’s Q2 Wall Street Projections Neutral Sentiment: Lowe’s has completed a five-year, $100 million hometown revitalization commitment and announced additional community investments. These efforts may support brand reputation but are unlikely to materially affect near-term earnings. Is Lowe’s Companies Undervalued As Its Earnings Call Nears? Negative Sentiment: Royal Bank of Canada lowered its expectations for Lowe’s, adding to concerns about near-term performance ahead of earnings. The company also faces elevated expectations around its upcoming results despite recent estimate reductions. Royal Bank of Canada Lowe’s Expectations Insiders Place Their Bets In other Lowe’s Companies news, EVP Margrethe R. Vagell sold 2,500 shares of the firm’s stock in a transaction on Thursday, June 18th. The stock was sold at an average price of $223.83, for a total transaction of $559,575.00. Following the transaction, the executive vice president owned 20,220 shares in the company, valued at $4,525,842.60. This trade represents a 11.00% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available at the SEC website. Also, EVP Janice Dupre sold 14,150 shares of Lowe’s Companies stock in a transaction on Tuesday, June 16th. The shares were sold at an average price of $221.90, for a total value of $3,139,885.00. Following the completion of the transaction, the executive vice president directly owned 39,785 shares of the company’s stock, valued at $8,828,291.50. This represents a 26.24% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Insiders have sold a total of 25,980 shares of company stock worth $5,796,937 in the last 90 days. Company insiders own 0.29% of the company’s stock.
Lowe’s Companies Stock Down 0.1% Shares of Lowe’s Companies stock opened at $218.19 on Monday. The stock has a market capitalization of $122.34 billion, a price-to-earnings ratio of 18.44, a price-to-earnings-growth ratio of 2.79 and a beta of 0.86. Lowe’s Companies, Inc. has a twelve month low of $199.40 and a twelve month high of $293.06. The company has a 50-day simple moving average of $216.00 and a two-hundred day simple moving average of $234.57.
Lowe’s Companies (NYSE:LOW – Get Free Report) last announced its earnings results on Wednesday, May 20th. The home improvement retailer reported $3.03 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $2.97 by $0.06. Lowe’s Companies had a net margin of 7.51% and a negative return on equity of 67.96%. The firm had revenue of $23.08 billion for the quarter, compared to analyst estimates of $22.98 billion. During the same quarter in the prior year, the business posted $2.92 EPS. The business’s revenue was up 10.3% compared to the same quarter last year. Lowe’s Companies has set its FY 2026 guidance at 12.250-12.750 EPS. On average, sell-side analysts anticipate that Lowe’s Companies, Inc. will post 12.43 earnings per share for the current fiscal year.
Lowe’s Companies Increases Dividend The business also recently declared a quarterly dividend, which was paid on Wednesday, August 5th. Investors of record on Wednesday, July 22nd were given a dividend of $1.25 per share. This is an increase from Lowe’s Companies’s previous quarterly dividend of $1.20. This represents a $5.00 dividend on an annualized basis and a yield of 2.3%. The ex-dividend date of this dividend was Wednesday, July 22nd. Lowe’s Companies’s dividend payout ratio (DPR) is currently 42.27%.
Lowe’s Companies Profile (Free Report)
Lowe’s Companies, Inc is a leading home improvement retailer that operates large-format stores and digital channels serving both do-it-yourself homeowners and professional contractors. The company offers a broad assortment of products including building materials, lumber, appliances, tools and hardware, plumbing and electrical supplies, paint, flooring, kitchen and bath fixtures, outdoor and garden products, and home decor. Lowe’s also provides a range of services such as installation, home improvement financing, tool and equipment rental, and contractor-focused sales programs.
Operations are centered on a nationwide brick-and-mortar store network supported by distribution centers and an e-commerce platform that enables online ordering, delivery and in-store pickup.
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Ascent Group LLC lowered its position in Lowe’s Companies, Inc. (NYSE:LOW – Free Report) by 20.9% during the second quarter, according to its most recent 13F filing with the Securities and Exchange Commission (SEC). The institutional investor owned 10,552 shares of the home improvement retailer’s stock after selling 2,788 shares during the quarter. Ascent Group LLC’s holdings in Lowe’s Companies were worth $2,327,000 at the end of the most recent quarter.
A number of other institutional investors and hedge funds also recently added to or reduced their stakes in LOW. Brighton Jones LLC increased its position in Lowe’s Companies by 119.7% in the 4th quarter. Brighton Jones LLC now owns 31,965 shares of the home improvement retailer’s stock valued at $7,889,000 after acquiring an additional 17,413 shares during the period. Revolve Wealth Partners LLC grew its stake in shares of Lowe’s Companies by 31.6% in the fourth quarter. Revolve Wealth Partners LLC now owns 1,078 shares of the home improvement retailer’s stock worth $266,000 after purchasing an additional 259 shares in the last quarter. Sivia Capital Partners LLC increased its holdings in shares of Lowe’s Companies by 22.3% during the second quarter. Sivia Capital Partners LLC now owns 1,534 shares of the home improvement retailer’s stock valued at $340,000 after purchasing an additional 280 shares during the period. United Bank increased its holdings in shares of Lowe’s Companies by 1.3% during the second quarter. United Bank now owns 12,124 shares of the home improvement retailer’s stock valued at $2,690,000 after purchasing an additional 155 shares during the period. Finally, Schnieders Capital Management LLC. raised its stake in shares of Lowe’s Companies by 13.1% during the second quarter. Schnieders Capital Management LLC. now owns 2,378 shares of the home improvement retailer’s stock valued at $528,000 after purchasing an additional 275 shares in the last quarter. 74.06% of the stock is owned by hedge funds and other institutional investors.
Wall Street Analysts Forecast Growth Several equities research analysts recently weighed in on LOW shares. TD Cowen reduced their price objective on shares of Lowe’s Companies from $280.00 to $235.00 and set a “hold” rating for the company in a report on Thursday, May 21st. Morgan Stanley dropped their price target on shares of Lowe’s Companies from $292.00 to $277.00 and set an “overweight” rating on the stock in a research report on Thursday, May 21st. BTIG Research lowered shares of Lowe’s Companies to a “reduce” rating in a research note on Tuesday, May 12th. Royal Bank Of Canada decreased their price objective on shares of Lowe’s Companies from $232.00 to $231.00 and set a “sector perform” rating for the company in a report on Wednesday. Finally, Jefferies Financial Group lowered their price objective on shares of Lowe’s Companies from $305.00 to $278.00 and set a “buy” rating on the stock in a research note on Thursday, May 21st. Twenty-three research analysts have rated the stock with a Buy rating, eleven have assigned a Hold rating and two have issued a Sell rating to the company’s stock. According to data from MarketBeat.com, Lowe’s Companies currently has an average rating of “Moderate Buy” and an average price target of $262.63.
Read Our Latest Stock Analysis on LOW
Key Stories Impacting Lowe’s Companies Here are the key news stories impacting Lowe’s Companies this week:
Positive Sentiment: Lowe’s is described as trading at its lowest forward price-to-earnings multiple in more than two years. Its status as a Dividend King, along with a recent dividend increase, strengthens the long-term income-investment case. 1 Number That Makes Lowe’s Stock an Obvious Buy Before Aug. 19 Positive Sentiment: Several analysts remain moderately optimistic despite the recent underperformance. Citigroup retained a “buy” rating while lowering its price target to $267 from $285, and Wells Fargo’s reduced target of $245 still implies meaningful upside from recent levels. Citigroup Lowe’s Price Target Update Positive Sentiment: Investor articles argue that a series of downward Q2 EPS estimate revisions may have lowered expectations and created the potential for a favorable earnings surprise. The longer-term bull case remains tied to Lowe’s brand strength, home-improvement demand and operating potential. Lowe’s Q2 EPS Revisions Neutral Sentiment: Wall Street projections for the quarter ended July 2026 are focusing on key operating metrics beyond revenue and EPS. The Aug. 19 report is the next major catalyst and could determine the near-term direction of the shares. Insights Into Lowe’s Q2 Wall Street Projections Neutral Sentiment: Lowe’s has completed a five-year, $100 million hometown revitalization commitment and announced additional community investments. These efforts may support brand reputation but are unlikely to materially affect near-term earnings. Is Lowe’s Companies Undervalued As Its Earnings Call Nears? Negative Sentiment: Royal Bank of Canada lowered its expectations for Lowe’s, adding to concerns about near-term performance ahead of earnings. The company also faces elevated expectations around its upcoming results despite recent estimate reductions. Royal Bank of Canada Lowe’s Expectations Lowe’s Companies Stock Down 0.0% LOW opened at $218.19 on Friday. The firm has a market capitalization of $122.34 billion, a P/E ratio of 18.44, a PEG ratio of 2.79 and a beta of 0.86. The stock has a fifty day moving average of $216.00 and a 200-day moving average of $234.87. Lowe’s Companies, Inc. has a 12-month low of $199.40 and a 12-month high of $293.06.
Lowe’s Companies (NYSE:LOW – Get Free Report) last posted its quarterly earnings results on Wednesday, May 20th. The home improvement retailer reported $3.03 earnings per share for the quarter, beating the consensus estimate of $2.97 by $0.06. Lowe’s Companies had a negative return on equity of 67.96% and a net margin of 7.51%.The firm had revenue of $23.08 billion for the quarter, compared to analyst estimates of $22.98 billion. During the same period in the previous year, the firm earned $2.92 earnings per share. Lowe’s Companies’s quarterly revenue was up 10.3% on a year-over-year basis. Lowe’s Companies has set its FY 2026 guidance at 12.250-12.750 EPS. On average, analysts expect that Lowe’s Companies, Inc. will post 12.44 earnings per share for the current fiscal year.
Lowe’s Companies Increases Dividend The business also recently announced a quarterly dividend, which was paid on Wednesday, August 5th. Shareholders of record on Wednesday, July 22nd were given a $1.25 dividend. This represents a $5.00 dividend on an annualized basis and a yield of 2.3%. The ex-dividend date was Wednesday, July 22nd. This is a positive change from Lowe’s Companies’s previous quarterly dividend of $1.20. Lowe’s Companies’s payout ratio is currently 42.27%.
Insiders Place Their Bets In other news, EVP Juliette Williams Pryor sold 9,330 shares of the business’s stock in a transaction on Wednesday, June 17th. The shares were sold at an average price of $224.81, for a total transaction of $2,097,477.30. Following the transaction, the executive vice president directly owned 16,142 shares in the company, valued at $3,628,883.02. The trade was a 36.63% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which is available at this link. Also, EVP Margrethe R. Vagell sold 2,500 shares of the company’s stock in a transaction on Thursday, June 18th. The stock was sold at an average price of $223.83, for a total transaction of $559,575.00. Following the completion of the transaction, the executive vice president directly owned 20,220 shares in the company, valued at $4,525,842.60. This trade represents a 11.00% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Insiders sold a total of 25,980 shares of company stock worth $5,796,937 in the last quarter. 0.29% of the stock is currently owned by corporate insiders.
Lowe’s Companies Profile (Free Report)
Lowe’s Companies, Inc is a leading home improvement retailer that operates large-format stores and digital channels serving both do-it-yourself homeowners and professional contractors. The company offers a broad assortment of products including building materials, lumber, appliances, tools and hardware, plumbing and electrical supplies, paint, flooring, kitchen and bath fixtures, outdoor and garden products, and home decor. Lowe’s also provides a range of services such as installation, home improvement financing, tool and equipment rental, and contractor-focused sales programs.
Operations are centered on a nationwide brick-and-mortar store network supported by distribution centers and an e-commerce platform that enables online ordering, delivery and in-store pickup.
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Heading into its second-quarter earnings release on Aug. 19, Lowe's (LOW -2.39%) is trading at a discount.
Its current P/E ratio of 18.5 is below its historical average of 20.5, and its forward P/E of 17.4 is the lowest it's been since the end of 2023, when it was 15.7.
This relatively low valuation alone makes the home improvement retail store stock worth considering heading into its earnings release.
Image source: Getty Images.
Another reason to buy is its ridiculously good dividend. Lowe's increased its dividend in July to $1.25 per share at a solid yield of 2.28%. This marks 55 straight years of dividend increases for the Dividend King.
What to watch in Q2 earnings The low valuation for Lowe's could spark a surge in the share price if Lowe's reports good second-quarter earnings.
It has some solid momentum with five straight earnings beats. In Q2, analysts anticipate revenue of $26.2 billion, which would be up 13% billion from Q1. Adjusted earnings are estimated to be $4.24 per share in Q2, which would be down from $4.33 per share in Q2 2025, mainly due to costs associated with recent acquisitions.
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Also, comparable-store sales are targeted to be between flat and a 2% increase. That is a key metric investors should watch. If the number is at the high end of that range or exceeds it, the stock price could jump. In addition, Lowe's has been steadily increasing its online sales. Last quarter, that segment saw a 15% gain. Investors will want to see if that continues trending higher.
Further, while Lowe's doesn't post its growth rates for its Pro business, which caters to contractors, there is typically commentary around it. Listen to what management says about Pro growth, as it's a higher-margin business than the DIY retail business. Pro growth may also signal that it is eating into the market share of rival Home Depot.
Dave Kovaleski has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Home Depot. The Motley Fool recommends Lowe's Companies. The Motley Fool has a disclosure policy.
Lowe's (LOW - Free Report) is expected to deliver a year-over-year decline in earnings on higher revenues when it reports results for the quarter ended July 2026. This widely-known consensus outlook gives a good sense of the company's earnings picture, but how the actual results compare to these estimates is a powerful factor that could impact its near-term stock price.
The earnings report, which is expected to be released on August 19, might help the stock move higher if these key numbers are better than expectations. On the other hand, if they miss, the stock may move lower.
While the sustainability of the immediate price change and future earnings expectations will mostly depend on management's discussion of business conditions on the earnings call, it's worth handicapping the probability of a positive EPS surprise.
Zacks Consensus EstimateThis home improvement retailer is expected to post quarterly earnings of $4.23 per share in its upcoming report, which represents a year-over-year change of -2.3%.
Revenues are expected to be $26.18 billion, up 9.3% from the year-ago quarter.
Estimate Revisions TrendThe consensus EPS estimate for the quarter has been revised 0.29% lower over the last 30 days to the current level. This is essentially a reflection of how the covering analysts have collectively reassessed their initial estimates over this period.
Investors should keep in mind that the direction of estimate revisions by each of the covering analysts may not always get reflected in the aggregate change.
Price, Consensus and EPS Surprise
Earnings WhisperEstimate revisions ahead of a company's earnings release offer clues to the business conditions for the period whose results are coming out. Our proprietary surprise prediction model -- the Zacks Earnings ESP (Expected Surprise Prediction) -- has this insight at its core.
The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate for the quarter; the Most Accurate Estimate is a more recent version of the Zacks Consensus EPS estimate. The idea here is that analysts revising their estimates right before an earnings release have the latest information, which could potentially be more accurate than what they and others contributing to the consensus had predicted earlier.
Thus, a positive or negative Earnings ESP reading theoretically indicates the likely deviation of the actual earnings from the consensus estimate. However, the model's predictive power is significant for positive ESP readings only.
A positive Earnings ESP is a strong predictor of an earnings beat, particularly when combined with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold). Our research shows that stocks with this combination produce a positive surprise nearly 70% of the time, and a solid Zacks Rank actually increases the predictive power of Earnings ESP.
Please note that a negative Earnings ESP reading is not indicative of an earnings miss. Our research shows that it is difficult to predict an earnings beat with any degree of confidence for stocks with negative Earnings ESP readings and/or Zacks Rank of 4 (Sell) or 5 (Strong Sell).
How Have the Numbers Shaped Up for Lowe's?For Lowe's, the Most Accurate Estimate is lower than the Zacks Consensus Estimate, suggesting that analysts have recently become bearish on the company's earnings prospects. This has resulted in an Earnings ESP of -1.77%.
On the other hand, the stock currently carries a Zacks Rank of #4.
So, this combination makes it difficult to conclusively predict that Lowe's will beat the consensus EPS estimate.
Does Earnings Surprise History Hold Any Clue?While calculating estimates for a company's future earnings, analysts often consider to what extent it has been able to match past consensus estimates. So, it's worth taking a look at the surprise history for gauging its influence on the upcoming number.
For the last reported quarter, it was expected that Lowe's would post earnings of $2.96 per share when it actually produced earnings of $3.03, delivering a surprise of +2.36%.
Over the last four quarters, the company has beaten consensus EPS estimates four times.
Bottom LineAn earnings beat or miss may not be the sole basis for a stock moving higher or lower. Many stocks end up losing ground despite an earnings beat due to other factors that disappoint investors. Similarly, unforeseen catalysts help a number of stocks gain despite an earnings miss.
That said, betting on stocks that are expected to beat earnings expectations does increase the odds of success. This is why it's worth checking a company's Earnings ESP and Zacks Rank ahead of its quarterly release. Make sure to utilize our Earnings ESP Filter to uncover the best stocks to buy or sell before they've reported.
Lowe's doesn't appear a compelling earnings-beat candidate. However, investors should pay attention to other factors too for betting on this stock or staying away from it ahead of its earnings release.
Expected Results of an Industry PlayerAnother stock from the Zacks Retail - Home Furnishings industry, Home Depot (HD - Free Report) , is soon expected to post earnings of $4.71 per share for the quarter ended July 2026. This estimate indicates a year-over-year change of +0.6%. Revenues for the quarter are expected to be $47.5 billion, up 4.9% from the year-ago quarter.
Over the last 30 days, the consensus EPS estimate for Home Depot has remained unchanged. Nevertheless, the company now has an Earnings ESP of +1.09%, reflecting a higher Most Accurate Estimate.
When combined with a Zacks Rank of #3 (Hold), this Earnings ESP indicates that Home Depot will most likely beat the consensus EPS estimate. Over the last four quarters, the company surpassed consensus EPS estimates two times.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.
The home improvement industry has been under pressure in recent years. Macroeconomic headwinds, most notably elevated interest rates and above-normal inflation, have hurt demand for the two largest players, Home Depot (HD +1.75%) and Lowe's (LOW +2.27%).
And these two retail stocks have underperformed the market. Home Depot shares are up 8% in the past three years (as of Aug. 7), while Lowe's shares have fallen 1%. Investors deciding between these two should focus on one key data point.
Here's one reason Lowe's may be a smarter buy than Home Depot before Aug. 19.
Image source: Getty Images.
A fresh financial update is on deck Lowe's is set to report financial results for its fiscal 2026 second quarter on Aug. 19. Besides the obvious revenue and profit figures, investors should pay attention to some important information.
Same-store sales increased 0.6% in Q1. It will be extremely encouraging to see this figure grow in the latest fiscal quarter, as it measures the performance of locations open at least 13 months.
Trends for both do-it-yourself and professional customer cohorts will be insightful. The leadership team continues to expect pro demand to outpace DIY.
Lowe's acquired Foundation Building Materials last October and Artisan Design Group in June 2025. Any commentary that management provides on cost synergies and integration progress will be valuable. This will indicate if these significant billion-dollar capital allocation decisions are bearing fruit.
Today's Change
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Valuation matters Of course, investors shouldn't buy Lowe's stock to front-run the financial release on Aug. 19. This sort of urgency promotes short-term thinking. In the grand scheme of things, a single quarter's numbers have minimal influence on overall valuation.
The best mentality is one that supports long-term ownership of businesses. This is the right philosophy to have. It allows compounding to work.
That being said, Lowe's is a better stock to buy right now over Home Depot for one simple reason: it's cheaper. The former trades at a forward price-to-earnings ratio of 16.5, while the latter can be bought at a 22.3 multiple. This means that the market is offering Lowe's at a 26% discount to its larger rival. That's a notable disparity when their business models are almost identical.
From fiscal 2020 to fiscal 2025, diluted earnings per share (EPS) at Lowe's grew at a much faster rate than it did at Home Depot. And looking at the next three fiscal years, the consensus view among sell-side analysts is that Lowe's will register a 6.5% annualized gain, slightly better than the expectation for Home Depot.
The market should eventually reward Lowe's with a valuation ratio that closes the gap with Home Depot.
Neil Patel has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Home Depot. The Motley Fool recommends Lowe's Companies. The Motley Fool has a disclosure policy.
Lowe's zakončil poslední seanci na 218,08 USD, což bylo o 2,84 % více než předchozí den a lépe než S&P 500. Další výsledky hospodaření má oznámit 19. srpna 2026; čeká se EPS 4,25 USD a tržby 26,25 miliardy USD.
Lowe's (LOW - Free Report) ended the recent trading session at $218.08, demonstrating a +2.84% change from the preceding day's closing price. The stock outpaced the S&P 500's daily gain of 1.79%. Elsewhere, the Dow saw an upswing of 1.71%, while the tech-heavy Nasdaq appreciated by 2.59%.
Prior to today's trading, shares of the home improvement retailer had lost 5.24% lagged the Retail-Wholesale sector's gain of 8.07% and the S&P 500's gain of 1.72%.
The upcoming earnings release of Lowe's will be of great interest to investors. The company's earnings report is expected on August 19, 2026. On that day, Lowe's is projected to report earnings of $4.25 per share, which would represent a year-over-year decline of 1.85%. Meanwhile, our latest consensus estimate is calling for revenue of $26.25 billion, up 9.54% from the prior-year quarter.
For the full year, the Zacks Consensus Estimates are projecting earnings of $12.46 per share and revenue of $93.09 billion, which would represent changes of +1.38% and +10.49%, respectively, from the prior year.
Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Lowe's. Such recent modifications usually signify the changing landscape of near-term business trends. Consequently, upward revisions in estimates express analysts' positivity towards the business operations and its ability to generate profits.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
The Zacks Rank system, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 0.18% lower. As of now, Lowe's holds a Zacks Rank of #4 (Sell).
In the context of valuation, Lowe's is at present trading with a Forward P/E ratio of 17.02. This represents a discount compared to its industry average Forward P/E of 21.19.
Also, we should mention that LOW has a PEG ratio of 2.68. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. LOW's industry had an average PEG ratio of 1.98 as of yesterday's close.
The Retail - Home Furnishings industry is part of the Retail-Wholesale sector. This group has a Zacks Industry Rank of 213, putting it in the bottom 14% of all 250+ industries.
The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.
Bank of Nova Scotia ve čtvrtletí snížila podíl v Lowe’s Companies o 51,2 % na 83 659 akcií. Lowe’s zároveň oznámila čtvrtletní EPS 3,03 USD, nad odhad 2,97 USD.
Bank of Nova Scotia lowered its stake in Lowe’s Companies, Inc. (NYSE:LOW – Free Report) by 51.2% during the 1st quarter, according to its most recent disclosure with the Securities & Exchange Commission. The firm owned 83,659 shares of the home improvement retailer’s stock after selling 87,817 shares during the quarter. Bank of Nova Scotia’s holdings in Lowe’s Companies were worth $19,767,000 as of its most recent filing with the Securities & Exchange Commission.
Several other institutional investors have also recently made changes to their positions in the stock. Swiss RE Ltd. purchased a new position in shares of Lowe’s Companies during the 4th quarter valued at $25,000. Wilkerson Advisory Group LLC purchased a new stake in Lowe’s Companies in the 4th quarter worth $27,000. OLD Second National Bank of Aurora increased its stake in Lowe’s Companies by 52.5% in the 4th quarter. OLD Second National Bank of Aurora now owns 122 shares of the home improvement retailer’s stock worth $29,000 after buying an additional 42 shares in the last quarter. Sankala Group LLC bought a new stake in Lowe’s Companies during the fourth quarter valued at about $33,000. Finally, Triumph Capital Management bought a new stake in Lowe’s Companies during the third quarter valued at about $34,000. Institutional investors own 74.06% of the company’s stock.
Lowe’s Companies Trading Up 2.7% Shares of LOW stock opened at $207.35 on Friday. The stock has a market capitalization of $116.26 billion, a price-to-earnings ratio of 17.53, a price-to-earnings-growth ratio of 2.62 and a beta of 0.86. Lowe’s Companies, Inc. has a 12-month low of $199.40 and a 12-month high of $293.06. The stock’s 50-day moving average price is $215.22 and its 200-day moving average price is $240.22.
Lowe’s Companies (NYSE:LOW – Get Free Report) last announced its quarterly earnings results on Wednesday, May 20th. The home improvement retailer reported $3.03 EPS for the quarter, beating analysts’ consensus estimates of $2.97 by $0.06. The company had revenue of $23.08 billion during the quarter, compared to analyst estimates of $22.98 billion. Lowe’s Companies had a negative return on equity of 67.96% and a net margin of 7.51%.The firm’s revenue was up 10.3% on a year-over-year basis. During the same period in the prior year, the company earned $2.92 earnings per share. Lowe’s Companies has set its FY 2026 guidance at 12.250-12.750 EPS. As a group, research analysts predict that Lowe’s Companies, Inc. will post 12.48 EPS for the current fiscal year.
Lowe’s Companies Increases Dividend The company also recently announced a quarterly dividend, which will be paid on Wednesday, August 5th. Stockholders of record on Wednesday, July 22nd will be given a dividend of $1.25 per share. The ex-dividend date is Wednesday, July 22nd. This represents a $5.00 dividend on an annualized basis and a dividend yield of 2.4%. This is an increase from Lowe’s Companies’s previous quarterly dividend of $1.20. Lowe’s Companies’s dividend payout ratio is currently 42.27%.
Wall Street Analysts Forecast Growth A number of equities analysts have recently weighed in on the company. TD Cowen dropped their price objective on Lowe’s Companies from $280.00 to $235.00 and set a “hold” rating for the company in a research note on Thursday, May 21st. Sanford C. Bernstein decreased their target price on Lowe’s Companies from $303.00 to $281.00 and set an “outperform” rating on the stock in a research note on Thursday, May 14th. Benchmark assumed coverage on Lowe’s Companies in a report on Tuesday, May 12th. They issued a “hold” rating on the stock. HSBC dropped their price target on Lowe’s Companies from $260.00 to $220.00 and set a “hold” rating for the company in a research note on Thursday, May 21st. Finally, Wolfe Research set a $254.00 price objective on shares of Lowe’s Companies in a report on Thursday, May 21st. Twenty-three analysts have rated the stock with a Buy rating, eleven have issued a Hold rating and two have given a Sell rating to the company. Based on data from MarketBeat, the stock presently has an average rating of “Moderate Buy” and an average price target of $264.57.
View Our Latest Analysis on LOW
Insider Activity at Lowe’s Companies In related news, EVP Margrethe R. Vagell sold 2,500 shares of the business’s stock in a transaction on Thursday, June 18th. The shares were sold at an average price of $223.83, for a total value of $559,575.00. Following the sale, the executive vice president owned 20,220 shares in the company, valued at approximately $4,525,842.60. The trade was a 11.00% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is accessible through this hyperlink. Also, EVP Janice Dupre sold 14,150 shares of the company’s stock in a transaction on Tuesday, June 16th. The shares were sold at an average price of $221.90, for a total transaction of $3,139,885.00. Following the sale, the executive vice president directly owned 39,785 shares in the company, valued at approximately $8,828,291.50. The trade was a 26.24% decrease in their position. The SEC filing for this sale provides additional information. Over the last ninety days, insiders sold 25,980 shares of company stock valued at $5,796,937. 0.29% of the stock is owned by corporate insiders.
About Lowe’s Companies (Free Report)
Lowe’s Companies, Inc is a leading home improvement retailer that operates large-format stores and digital channels serving both do-it-yourself homeowners and professional contractors. The company offers a broad assortment of products including building materials, lumber, appliances, tools and hardware, plumbing and electrical supplies, paint, flooring, kitchen and bath fixtures, outdoor and garden products, and home decor. Lowe’s also provides a range of services such as installation, home improvement financing, tool and equipment rental, and contractor-focused sales programs.
Operations are centered on a nationwide brick-and-mortar store network supported by distribution centers and an e-commerce platform that enables online ordering, delivery and in-store pickup.
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Andra AP fond ve 1. čtvrtletí snížil podíl v Lowe’s o 43,8 % na 91 913 akcií. Vedení také prodalo akcie a Lowe’s oznámil vyšší čtvrtletní dividendu na 1,25 USD na akcii z předchozích 1,20 USD.
Andra AP fonden cut its holdings in Lowe’s Companies, Inc. (NYSE:LOW – Free Report) by 43.8% during the 1st quarter, according to its most recent Form 13F filing with the Securities and Exchange Commission (SEC). The fund owned 91,913 shares of the home improvement retailer’s stock after selling 71,607 shares during the quarter. Andra AP fonden’s holdings in Lowe’s Companies were worth $21,717,000 at the end of the most recent quarter.
A number of other hedge funds and other institutional investors have also recently added to or reduced their stakes in the stock. Natixis Advisors LLC boosted its position in shares of Lowe’s Companies by 3.5% in the fourth quarter. Natixis Advisors LLC now owns 630,956 shares of the home improvement retailer’s stock valued at $152,161,000 after acquiring an additional 21,119 shares during the period. Bridges Investment Management Inc. increased its stake in Lowe’s Companies by 6.1% in the fourth quarter. Bridges Investment Management Inc. now owns 446,441 shares of the home improvement retailer’s stock valued at $107,664,000 after acquiring an additional 25,609 shares during the period. Glenview Trust Co grew its stake in shares of Lowe’s Companies by 9.0% in the 4th quarter. Glenview Trust Co now owns 207,797 shares of the home improvement retailer’s stock valued at $50,112,000 after purchasing an additional 17,225 shares during the period. Kathmere Capital Management LLC grew its position in Lowe’s Companies by 133.9% in the first quarter. Kathmere Capital Management LLC now owns 9,402 shares of the home improvement retailer’s stock valued at $2,222,000 after acquiring an additional 5,383 shares during the period. Finally, LPL Financial LLC grew its holdings in shares of Lowe’s Companies by 2.3% in the 4th quarter. LPL Financial LLC now owns 993,332 shares of the home improvement retailer’s stock worth $239,552,000 after purchasing an additional 22,175 shares during the last quarter. Hedge funds and other institutional investors own 74.06% of the company’s stock.
Wall Street Analyst Weigh In A number of equities research analysts recently weighed in on the company. Royal Bank Of Canada dropped their price target on Lowe’s Companies from $264.00 to $232.00 and set a “sector perform” rating for the company in a report on Thursday, May 21st. HSBC dropped their price target on shares of Lowe’s Companies from $260.00 to $220.00 and set a “hold” rating for the company in a research note on Thursday, May 21st. Telsey Advisory Group cut their target price on Lowe’s Companies from $295.00 to $280.00 and set an “outperform” rating on the stock in a research note on Thursday, May 21st. Wells Fargo & Company cut their target price on shares of Lowe’s Companies from $260.00 to $255.00 and set an “overweight” rating on the stock in a report on Thursday, May 21st. Finally, UBS Group cut their price objective on Lowe’s Companies from $315.00 to $285.00 and set a “buy” rating on the stock in a report on Thursday, May 21st. Twenty-three research analysts have rated the stock with a Buy rating, eleven have given a Hold rating and two have given a Sell rating to the stock. According to MarketBeat, the company currently has an average rating of “Moderate Buy” and a consensus target price of $264.57.
View Our Latest Research Report on Lowe’s Companies
Insider Buying and Selling at Lowe’s Companies In other Lowe’s Companies news, EVP Juliette Williams Pryor sold 9,330 shares of the business’s stock in a transaction that occurred on Wednesday, June 17th. The stock was sold at an average price of $224.81, for a total transaction of $2,097,477.30. Following the transaction, the executive vice president owned 16,142 shares of the company’s stock, valued at $3,628,883.02. The trade was a 36.63% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link. Also, EVP Margrethe R. Vagell sold 2,500 shares of the company’s stock in a transaction on Thursday, June 18th. The stock was sold at an average price of $223.83, for a total transaction of $559,575.00. Following the sale, the executive vice president directly owned 20,220 shares in the company, valued at $4,525,842.60. This trade represents a 11.00% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Insiders sold a total of 25,980 shares of company stock worth $5,796,937 over the last ninety days. 0.29% of the stock is currently owned by corporate insiders.
Lowe’s Companies Stock Performance Shares of Lowe’s Companies stock opened at $204.76 on Tuesday. The firm has a market cap of $114.81 billion, a PE ratio of 17.31, a P/E/G ratio of 2.64 and a beta of 0.86. The business’s 50 day simple moving average is $216.62 and its 200 day simple moving average is $241.29. Lowe’s Companies, Inc. has a 52-week low of $203.40 and a 52-week high of $293.06.
Lowe’s Companies (NYSE:LOW – Get Free Report) last released its quarterly earnings results on Wednesday, May 20th. The home improvement retailer reported $3.03 earnings per share for the quarter, topping analysts’ consensus estimates of $2.97 by $0.06. The firm had revenue of $23.08 billion during the quarter, compared to the consensus estimate of $22.98 billion. Lowe’s Companies had a negative return on equity of 67.96% and a net margin of 7.51%.The business’s revenue was up 10.3% on a year-over-year basis. During the same quarter in the prior year, the firm posted $2.92 EPS. Lowe’s Companies has set its FY 2026 guidance at 12.250-12.750 EPS. As a group, equities research analysts predict that Lowe’s Companies, Inc. will post 12.48 EPS for the current year.
Lowe’s Companies Increases Dividend The firm also recently declared a quarterly dividend, which will be paid on Wednesday, August 5th. Shareholders of record on Wednesday, July 22nd will be given a dividend of $1.25 per share. This is a boost from Lowe’s Companies’s previous quarterly dividend of $1.20. The ex-dividend date of this dividend is Wednesday, July 22nd. This represents a $5.00 annualized dividend and a yield of 2.4%. Lowe’s Companies’s payout ratio is presently 40.57%.
About Lowe’s Companies (Free Report)
Lowe’s Companies, Inc is a leading home improvement retailer that operates large-format stores and digital channels serving both do-it-yourself homeowners and professional contractors. The company offers a broad assortment of products including building materials, lumber, appliances, tools and hardware, plumbing and electrical supplies, paint, flooring, kitchen and bath fixtures, outdoor and garden products, and home decor. Lowe’s also provides a range of services such as installation, home improvement financing, tool and equipment rental, and contractor-focused sales programs.
Operations are centered on a nationwide brick-and-mortar store network supported by distribution centers and an e-commerce platform that enables online ordering, delivery and in-store pickup.
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Wall Street had Lowe’s pegged as the next dividend story to wobble. Rising rates, a softer housing turnover backdrop, and a sluggish DIY consumer set up a narrative where management would have to choose between defending the balance sheet and defending the payout. Then on May 29, 2026, the board declared a $1.25 quarterly dividend, raising the payout from the $1.20 level held through Q1 2026 and Q4 2025. The check goes out August 5, 2026. The bears now have to explain why the cash flow statement disagrees with them.
Here is the framework: a dividend cut thesis on Lowe’s (NYSE:LOW | LOW Price Prediction) requires three things to be true at once. Free cash flow has to be compressing toward the payout. Earnings power has to be deteriorating faster than management can offset. And the board has to lose confidence in the medium-term recovery. Look at the numbers, and none of those three boxes get checked.
The Cash Flow Math Does Not Support a Cut Lowe’s generated $9.86 billion in operating cash flow and $7.65 billion in free cash flow in the fiscal year ended January 2026. The dividend cost the company $2.64 billion. That is 2.9x FCF coverage, in line with the 3.0x prior year and ahead of the 2.4x two years before that. Coverage is stable and holding.
On a per-share basis, trailing diluted EPS is $11.84 against an annualized dividend of $4.80. That puts the earnings payout ratio in the low-40s. Even on management’s own FY2026 adjusted EPS range of $12.25 to $12.75, the new $5.00 annualized run-rate would still leave roughly 60% of earnings retained. Dividend Kings have been cut from far tighter spots than this.
Management Backed Up the Truck Where It Counts The capital allocation signal worth watching is the mix. In FY2026, buybacks collapsed to $211 million from $4.05 billion the year before, while dividends grew. That is a defensive rotation, and it remains a rotation toward the most contractually visible return. Management is funneling shareholder returns into the most contractually visible form of cash distribution while building flexibility against the macro.
CFO Brandon Sink laid out the balance sheet plan on the Q1 call: “In the quarter, we paid $674 million in dividends at $1.20 per share. We also repaid $2.4 billion in bond maturities as we continue progressing towards our commitment to deleverage and return to a 2.75x leverage ratio by mid-2027.” Companies that are worried about dividend sustainability do not simultaneously commit $2.5 billion of full-year capex and accelerate debt paydown. They hoard.
Twenty-Six Years of Increases Is Not an Accident The dividend has risen every single year from 1999 through 2026, putting Lowe’s solidly in Dividend Aristocrat territory and within the broader Dividend King conversation. Annual per-share dividends went from $0.12 in 1999 to $4.70 in 2025. The 2022 jump from $3.00 to $3.95 happened straight through the post-pandemic inventory unwind. The 2026 raise happened with CEO Marvin Ellison calling this “the most difficult housing market I’ve faced in this business since the financial crisis”. Track record matters, and this one says management raises through pain, not just through prosperity.
What the Bears Are Right About The macro is genuinely ugly. Housing starts fell to 1.18 million in May 2026, down 15% from April and sitting at the boundary between healthy and weak. Existing home sales at 4.17 million remain in the soft zone the market has been stuck in since 2023. Ellison himself acknowledged the structural pressure: “With roughly 60% to 65% of our revenue coming from DIY and still being able to deliver positive comps, we take that as a win.” When the win bar is positive comps at all, you are not in a growth market.
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Q1 reinforced the caution. Revenue of $23.1 billion grew 10% YoY, but that includes the FBM and ADG acquisitions. Organic comparable sales rose only 1%, and adjusted EPS of $3.03 missed the $3.06 consensus. Gross margin compressed 70 basis points to 33%. Bears have the headwinds right. They are simply drawing the wrong conclusion about how Lowe’s responds to them.
The Insider Tell The insider tape is the one place where the cut thesis finds oxygen. In mid-June 2026, after the dividend raise was announced, EVP and CLO Juliette Pryor disposed of 19,768 shares across two transactions at roughly $220 to $225, and EVP of HR Janice Dupre sold 14,150 shares at $221.90. That is meaningful for two senior executives to do simultaneously, even allowing for 10b5-1 plans.
Cutting the other way: CEO Ellison net-acquired 29,417 shares on April 1 through RSU vesting after selling a portion for taxes, and no executive has bought open-market shares. The signal reads as ambiguous overall.
The Verdict on the Scorecard Grading the dividend on the metrics that matter:
Yield: 2%. Below the S&P average but rising. C+. Coverage: 2.9x FCF, payout ratio in the low-40s on earnings. A. Growth streak: 26+ consecutive years of annual increases. A+. Recent raise: Roughly 4% bump from $1.20 to $1.25, in a tough macro. A-. Balance sheet trajectory: Deleveraging to 2.75x by mid-2027 from 3.1x. B+. Net grade: A-. The yield alone holds the composite back, while durability remains intact.
What to Watch Next The stock is down 7% year to date and trades at 19 times trailing earnings with a forward multiple of 18. The $263.73 consensus analyst target sits well above the $220 area, and the 200-day moving average of $244.33 marks the gap shorts have been pressing.
If existing home sales can break above 4.5 million and mortgage rates normalize, the operating margin guide of 12% looks conservative and the dividend has clear runway to keep compounding. If housing turnover stays locked up through 2027, growth slows but the payout still gets funded out of the existing FCF base. Wall Street is betting on the worse outcome. The cash flow statement and 26 years of board behavior say management has earned the benefit of the doubt.
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In the latest close session, Lowe's (LOW - Free Report) was down 1.31% at $219.57. This change lagged the S&P 500's daily gain of 1.18%. Meanwhile, the Dow gained 0.59%, and the Nasdaq, a tech-heavy index, added 2.07%.
The home improvement retailer's stock has climbed by 3.79% in the past month, exceeding the Retail-Wholesale sector's loss of 5.89% and the S&P 500's loss of 2.9%.
The upcoming earnings release of Lowe's will be of great interest to investors. The company's earnings report is expected on August 19, 2026. The company is predicted to post an EPS of $4.26, indicating a 1.62% decline compared to the equivalent quarter last year. Simultaneously, our latest consensus estimate expects the revenue to be $26.25 billion, showing a 9.54% escalation compared to the year-ago quarter.
For the annual period, the Zacks Consensus Estimates anticipate earnings of $12.48 per share and a revenue of $93.09 billion, signifying shifts of +1.55% and +7.89%, respectively, from the last year.
Investors might also notice recent changes to analyst estimates for Lowe's. These recent revisions tend to reflect the evolving nature of short-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the business performance and profit potential.
Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable rating system.
The Zacks Rank system, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. Over the past month, there's been a 0.09% fall in the Zacks Consensus EPS estimate. Lowe's is currently a Zacks Rank #3 (Hold).
Investors should also note Lowe's's current valuation metrics, including its Forward P/E ratio of 17.83. This denotes a discount relative to the industry average Forward P/E of 23.24.
Investors should also note that LOW has a PEG ratio of 2.81 right now. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. By the end of yesterday's trading, the Retail - Home Furnishings industry had an average PEG ratio of 2.04.
The Retail - Home Furnishings industry is part of the Retail-Wholesale sector. Currently, this industry holds a Zacks Industry Rank of 232, positioning it in the bottom 5% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding trading sessions.
