Lowe's shares are down about 23% this year and trade near a 52-week low of $186. The stock has fallen about 15% since the home improvement retailer reported second-quarter earnings on August 19. Revenue rose 8% year over year to $26 billion, but same-store sales were flat and earnings were flat on acquisition costs. Lowe's also cut its guidance to the lower end of previous ranges, as high mortgage rates and inflation weigh on housing and home improvement spending. The price/earnings ratio has dropped to 16, a three-year low. Lowe's has raised its dividend for 55 consecutive years and has a payout ratio of 38%. About 72% of Wall Street analysts rate the stock a buy. The median price target of $254 implies 36% upside.

Lowe's shares have fallen about 18% over the past twelve months, while the S&P 500 gained about 18%. Management said customers were cautious in fiscal Q2 2026, and rivals used tariff refunds to cut prices, mainly on seasonal goods in July. Lowe's chose not to match some of those promotions, which were not in its financial plan. Comparable transactions fell 2.1%, but a 2.3% rise in average ticket kept comparable sales up 0.2%. Operating margin was 11.4% over the past twelve months, down from 12.4%. Management expects the price cutting to ease in the second half. It moved its full-year sales target to the bottom of its range, at about $92 billion, and expects fiscal Q3 adjusted earnings per share about 7% lower.

Lowe's stock has fallen 26% over the twelve months to September 30, 2026, whilst the S&P 500 returned 14%. The home improvement retailer has shifted strategy, targeting larger professional contractors through acquisitions of Foundation Building Materials and Artisan Design Group. Sales reached $26 billion in fiscal Q2 2026, up 8.3% year-over-year. However, comparable sales rose just 0.2%, meaning nearly all growth came from the recent acquisitions rather than existing operations. Management lowered its full-year sales outlook to approximately $92 billion, expecting comparable sales to remain flat. The company cited pressure from weak do-it-yourself demand and difficult building market conditions. Comparable purchases fell 2.1%, driven by weather-sensitive categories. As of September 30, 2026, Lowe's shares traded at 15.5 times trailing earnings, below the S&P 500's 21.7 multiple.