Zacks Research Expects Lower Earnings for Lowe's Companies

Key Points

• Analysts at Zacks Research have revised down their Q3 2026 earnings per share estimate for Lowe's Companies to $2.97, compared to the previous forecast of $3.05.
• Despite the EPS estimate cut, Lowe's reported better-than-expected Q2 earnings of $4.33, exceeding the consensus estimate of $4.24.
• Multiple investment firms have set bullish price targets for Lowe's stock, with several maintaining a "buy" rating and an average price target of $284.13.

Lowe's Companies, Inc. (NYSE:LOW - Free Report) - Investment analysts at Zacks Research lowered their Q3 2026 earnings per share estimates for shares of Lowe's Companies in a research report issued on Wednesday, September 3rd. Zacks Research analyst Team now expects that the home improvement retailer will earn $2.97 per share for the quarter, down from their previous estimate of $3.05. The consensus estimate for Lowe's Companies' current full-year earnings is $11.90 per share. Zacks Research also issued estimates for Lowe's Companies' Q1 2027 earnings at $3.19 EPS, Q2 2027 earnings at $4.58 EPS, Q3 2027 earnings at $3.25 EPS, Q4 2027 earnings at $2.31 EPS, FY2027 earnings at $13.33 EPS, Q1 2028 earnings at $3.45 EPS, Q2 2028 earnings at $4.92 EPS and FY2028 earnings at $14.41 EPS.

Lowe's Companies (NYSE:LOW - Get Free Report) last posted its quarterly earnings results on Wednesday, August 20th. The home improvement retailer reported $4.33 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $4.24 by $0.09. The company had revenue of $23.96 billion for the quarter, compared to analyst estimates of $23.99 billion. Lowe's Companies had a negative return on equity of 52.02% and a net margin of 8.20%.Lowe's Companies's revenue for the quarter was up 1.6% compared to the same quarter last year. During the same quarter last year, the company earned $4.10 EPS. Lowe's Companies has set its FY 2025 guidance at 12.200-12.450 EPS.

Several other brokerages have also weighed in on LOW. Wells Fargo & Company raised their target price on Lowe's Companies from $260.00 to $300.00 and gave the stock an "overweight" rating in a research report on Thursday, August 21st. KeyCorp raised their price target on Lowe's Companies from $266.00 to $300.00 and gave the stock an "overweight" rating in a research note on Thursday, August 21st. DA Davidson raised their price target on Lowe's Companies from $240.00 to $266.00 and gave the stock a "neutral" rating in a research note on Thursday, August 21st. Stifel Nicolaus raised their price target on Lowe's Companies from $240.00 to $265.00 and gave the stock a "hold" rating in a research note on Monday, August 18th. Finally, UBS Group raised their price target on Lowe's Companies from $300.00 to $325.00 and gave the stock a "buy" rating in a research note on Thursday, August 21st. Sixteen investment analysts have rated the stock with a Buy rating, nine have issued a Hold rating and one has given a Sell rating to the company's stock. According to data from MarketBeat, the stock presently has a consensus rating of "Moderate Buy" and an average target price of $284.13.

Lowe's Companies Stock Performance

LOW stock traded up $2.98 during mid-day trading on Thursday, reaching $272.95. The company had a trading volume of 4,464,567 shares, compared to its average volume of 2,720,737. The company has a market capitalization of $153.08 billion, a price-to-earnings ratio of 22.43, a price-to-earnings-growth ratio of 2.50 and a beta of 0.87. The firm has a fifty day simple moving average of $238.85 and a 200 day simple moving average of $230.63. Lowe's Companies has a fifty-two week low of $206.38 and a fifty-two week high of $287.01.

Institutional Investors Weigh In On Lowe's Companies

Institutional investors and hedge funds have recently modified their holdings of the stock. Brighton Jones LLC raised its stake in 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 buying an additional 17,413 shares in the last quarter. Revolve Wealth Partners LLC raised its stake in Lowe's Companies by 31.6% during the fourth quarter. Revolve Wealth Partners LLC now owns 1,078 shares of the home improvement retailer's stock valued at $266,000 after buying an additional 259 shares in the last quarter. Bosun Asset Management LLC raised its stake in Lowe's Companies by 16.3% during the fourth quarter. Bosun Asset Management LLC now owns 1,425 shares of the home improvement retailer's stock valued at $352,000 after buying an additional 200 shares in the last quarter. BOKF NA raised its position in shares of Lowe's Companies by 3.8% during the 4th quarter. BOKF NA now owns 30,575 shares of the home improvement retailer's stock worth $7,580,000 after purchasing an additional 1,123 shares during the period. Finally, Cetera Investment Advisers raised its position in shares of Lowe's Companies by 3.9% during the 4th quarter. Cetera Investment Advisers now owns 239,946 shares of the home improvement retailer's stock worth $59,219,000 after purchasing an additional 8,962 shares during the period. Hedge funds and other institutional investors own 74.06% of the company's stock.

Insiders Place Their Bets

In other news, CEO Marvin R. Ellison sold 40,000 shares of the business's stock in a transaction on Wednesday, August 20th. The stock was sold at an average price of $264.10, for a total value of $10,564,000.00. Following the completion of the transaction, the chief executive officer directly owned 249,043 shares of the company's stock, valued at $65,772,256.30. The trade was a 13.84% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is available through the SEC website. Also, EVP Juliette Williams Pryor sold 929 shares of the business's stock in a transaction on Tuesday, August 26th. The stock was sold at an average price of $257.20, for a total value of $238,938.80. Following the completion of the transaction, the executive vice president directly owned 30,099 shares of the company's stock, valued at approximately $7,741,462.80. This trade represents a 2.99% decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders own 0.27% of the company's stock.

Lowe's Companies Cuts Dividend

The business also recently declared a quarterly dividend, which will be paid on Wednesday, November 5th. Stockholders of record on Wednesday, October 22nd will be issued a $0.012 dividend. This represents a $0.05 dividend on an annualized basis and a dividend yield of 0.0%. The ex-dividend date of this dividend is Wednesday, October 22nd. Lowe's Companies's payout ratio is 39.44%.

Lowe's Companies Company Profile

Lowe's Companies, Inc, together with its subsidiaries, operates as a home improvement retailer in the United States. The company offers a line of products for construction, maintenance, repair, remodeling, and decorating. It also provides home improvement products, such as appliances, seasonal and outdoor living, lawn and garden, lumber, kitchens and bath, tools, paint, millwork, hardware, flooring, rough plumbing, building materials, décor, and electrical.