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Lowe's Companies Inc LOW

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Stock XNYS Rating as of
$210.74 +3.21 (1.55%)
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As of Delayed Price Closed

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With Tepid Growth From DIY Consumers, Lowe's Stimulates Growth With Pro Acquisitions

Jaime M Katz

Lowe's is the second-largest home improvement retailer globally, set to capture around $93 billion in sales in fiscal 2026. With a perpetual focus on retail fundamentals (merchandising, operational efficiency, supply chain improvements, omnichannel shopping experience, and customer engagement), Lowe's has been able to manage costs while maintaining its low-cost position. The firm retains some of its cost savings and passes the rest on to its customers through everyday low prices, creating a flywheel effect. Intangible asset and scale-based cost advantages support our wide moat rating.

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Price vs Fair Value

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LOW is trading at a 172% premium.
Price
$210.74
Fair Value
$298.00
Uncertainty
Medium
1-Star Price
$641.40
5-Star Price
$795.90
Economic Moat
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Capital Allocation
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Bulls Say, Bears Say

Bulls

Investments in technology and the supply chain should improve productivity and allow store employees to better service customers, enhancing the retail experience and bolstering Lowe's brand intangible asset and competitive market position.

Bears

The consolidation of smaller distribution peers may intermittently lead to competitive pricing pressures at Lowe's, constraining ROIC expansion and limiting sales growth.

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Trading Information

Previous Close Price
$207.53
Day Range
$207.45–211.86
52-Week Range
$203.40–293.06
Bid/Ask
$209.18 / $210.58
Shares Outstanding
560.71M
Market Cap
$118.16B
Volume/Avg
2M / 3M

Key Statistics

Price/Earnings (Normalized)
16.92
Price/Sales
1.33
Dividend Yield (Trailing)
2.28%
Dividend Yield (Forward)
2.37%
Total Yield
2.67%

Company Profile

Lowe's is the second-largest home improvement retailer globally, with 1,759 stores in the US, after the 2023 divestiture of its Canadian locations. The firm’s stores offer products and services for home decorating, maintenance, repair, and remodeling, with maintenance and repair accounting for two-thirds of products sold. Lowe's primarily targets retail do-it-yourself (around 70% of sales) and do-it-for-me customers, but has expanded its professional business clients to 30% from less than 20% in the past seven years (set to expand further with the acquisition of FBM). We estimate Lowe's captures a high-single-digit share of the domestic home improvement market, based on US Census data and management’s market size estimates.
Sector
Consumer Cyclical
Industry
Home Improvement Retail
Stock Style Box
Large Value
Total Number of Employees
276,000
Website
https://www.lowes.com

Competitors

Valuation

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Metric
LOW
WMT
HD
Price/Earnings (Normalized)
 16.9244.0321.33
Price/Book Value
 —10.0322.31
Price/Sales
 1.331.311.86
Price/Cash Flow
 11.5622.7116.24
Price/Earnings
LOW
WMT
HD

Financial Strength

Metric
LOW
WMT
HD
Quick Ratio
 0.100.190.23
Current Ratio
 1.090.771.04
Interest Coverage
 6.4911.588.61
Quick Ratio
LOW
WMT
HD

Profitability

Metric
LOW
WMT
HD
Return on Assets (Normalized)
 13.43%8.28%13.90%
Return on Equity (Normalized)
 —24.92%125.51%
Return on Invested Capital (Normalized)
 25.53%14.91%21.61%
Return on Assets
LOW
WMT
HD

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