Key Stats for Lowe’s Stock
- Price Change for Lowe’s stock: 4%
- $LOW Share Price as of Nov. 19: $228.41
- 52-Week High: $280.64
- $LOW Stock Price Target: $277.41
Now Live: Discover how much upside your favorite stocks could have using TIKR’s new Valuation Model (It’s free)>>>
What Happened?
Lowe’s (LOW) stock jumped 4% on Wednesday after the home improvement retailer reported third-quarter earnings that beat Wall Street expectations and said the current quarter started with positive comparable sales.
The company posted adjusted earnings of $3.06 per share on revenue of $20.81 billion, vs. estimates of $2.95 per share and $20.84 billion, respectively.
Comparable sales rose 0.4% despite a 100-basis-point headwind from lapping hurricane activity last year. More importantly, CEO Marvin Ellison said the company is seeing positive comps at the start of the fourth quarter, suggesting momentum is building heading into the holidays.
Lowe’s updated full-year guidance to reflect its recent $8.8 billion acquisition of Foundation Building Materials, which closed in October.
It now expects total sales of $86 billion for the year, up from prior guidance of $84.5 billion to $85.5 billion. However, it trimmed its comparable sales outlook to flat, down from prior guidance of flat to up 1%, citing ongoing economic uncertainty.
Adjusted earnings per share guidance came in at $12.25, at the low end of the prior range of $12.20 to $12.45.
Net income fell to $1.62 billion from $1.7 billion in the year-ago period, but adjusted operating margin expanded 10 basis points to 12.4% as the company’s perpetual productivity improvement initiatives delivered results.
See analysts’ growth forecasts and price targets for LOW stock (It’s free!) >>>
What the Market Is Telling Us About Lowe’s Stock
The 4% gain in LOW stock reflects relief that the business is stabilizing after two years of sluggish home improvement demand.
Ten of the company’s 14 merchandise divisions posted positive sales growth during the quarter, including appliances, flooring, kitchen, and bath. Online sales surged 11.4%, driven by higher traffic and conversion rates.
CEO Ellison described the U.S. homeowner as financially healthy, with strong balance sheets and average home equity of roughly $400,000.
But he acknowledged that affordability concerns and broader economic uncertainty are making consumers hesitant to take on larger discretionary projects. Borrowing costs have remained elevated longer than anticipated, weighing on remodel activity.
The bright spot continues to be the Pro customer segment, which delivered another quarter of growth. Lowe’s MyLowe’s Pro Rewards members shop twice as often and spend 50% more than non-members, giving the company deeper customer insights for targeted marketing.
The company is integrating Foundation Building Materials into its Pro Extended Aisle platform, enabling Pro sales associates to sell directly from supplier catalogs and have products shipped to job sites.
Home services posted double-digit comparable sales growth, driven by tech-enabled solutions that streamline the customer experience from inquiry to installation. Windows and doors, HVAC, water heaters, and kitchen and bath installations all showed strength as Lowe’s takes a share in the installed business.
LOW stock is down 7% in 2025, as the company executes on its Total Home Strategy despite challenging industry conditions.
The home improvement heavyweight is leveraging AI through its Mylow virtual assistant, which is answering nearly 1 million customer questions per month. When customers engage with Mylow online, conversion rates more than double.
CFO Brandon Sink said the company feels “cautiously optimistic” heading into 2026, citing accelerating 1-year and 2-year comparable sales trends when excluding storm-related activity.
It ended the quarter with $621 million in cash and an adjusted debt-to-EBITDAR of 3.36x after financing the Foundation Building Materials acquisition with $5 billion in bonds and a $2 billion term loan.
Management expects to delever to its 2.75x target by mid-2027. Moreover, LOW stock investors are betting that lower interest rates could unlock pent-up demand for home equity financing, as roughly $11 trillion to $13 trillion of the $33 trillion in total home equity is considered tappable.
With homeowners locked into low mortgage rates but sitting on substantial equity, HELOCs could fund the next wave of discretionary remodel projects.
Estimate a company’s fair value instantly (Free with TIKR) >>>
How Much Upside Does Lowe’s Stock Have From Here?
With TIKR’s new Valuation Model tool, you can estimate a stock’s potential share price in under a minute.
All it takes is three simple inputs:
- Revenue Growth
- Operating Margins
- Exit P/E Multiple
If you’re not sure what to enter, TIKR automatically fills in each input using analysts’ consensus estimates, giving you a quick, reliable starting point.
From there, TIKR calculates the potential share price and total returns under Bull, Base, and Bear scenarios so you can quickly see whether a stock looks undervalued or overvalued.
See a stock’s true value in under 60 seconds (Free with TIKR) >>>
Looking for New Opportunities?
- See what stocks billionaire investors are buying so you can follow the smart money.
- Analyze stocks in as little as 5 minutes with TIKR’s all-in-one, easy-to-use platform.
- The more rocks you overturn… the more opportunities you’ll uncover. Search 100K+ global stocks, global top investor holdings, and more with TIKR.
Disclaimer:
Please note that the articles on TIKR are not intended to serve as investment or financial advice from TIKR or our content team, nor are they recommendations to buy or sell any stocks. We create our content based on TIKR Terminal’s investment data and analysts’ estimates. Our analysis might not include recent company news or important updates. TIKR has no position in any stocks mentioned. Thank you for reading, and happy investing!
