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Lowe's (LOW) Stock Sinks As Market Gains: Here's Why

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Lowe's (LOW - Free Report) ended the recent trading session at $253.32, demonstrating a -1.48% change from the preceding day's closing price. This change lagged the S&P 500's 0.26% gain on the day. Elsewhere, the Dow gained 0.15%, while the tech-heavy Nasdaq added 0.48%.

Shares of the home improvement retailer have depreciated by 0.36% over the course of the past month, underperforming the Retail-Wholesale sector's gain of 0.76%, and the S&P 500's gain of 2.87%.

The upcoming earnings release of Lowe's will be of great interest to investors. The company's earnings report is expected on November 19, 2025. The company's earnings per share (EPS) are projected to be $3.01, reflecting a 4.15% increase from the same quarter last year. Meanwhile, the latest consensus estimate predicts the revenue to be $20.91 billion, indicating a 3.66% increase compared to the same quarter of the previous year.

For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $12.34 per share and a revenue of $85.09 billion, representing changes of +2.83% and +1.69%, respectively, from the prior year.

Investors should also take note of any recent adjustments to analyst estimates for Lowe's. These revisions help to show the ever-changing nature of near-term business trends. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the business health and profitability.

Based on our research, we believe these estimate revisions are directly related to near-term stock moves. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable rating system.

Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the past month, the Zacks Consensus EPS estimate has shifted 0.03% downward. Lowe's presently features a Zacks Rank of #3 (Hold).

Digging into valuation, Lowe's currently has a Forward P/E ratio of 20.84. This signifies a discount in comparison to the average Forward P/E of 23.54 for its industry.

It is also worth noting that LOW currently has a PEG ratio of 2.38. 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. As of the close of trade yesterday, the Retail - Home Furnishings industry held an average PEG ratio of 2.82.

The Retail - Home Furnishings industry is part of the Retail-Wholesale sector. With its current Zacks Industry Rank of 212, this industry ranks in the bottom 15% of all industries, numbering over 250.

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.

Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.


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