LOW Lowe's Companies, Inc. Common Stock

NYSE · Retail · View on SEC EDGAR ↗
$216.34
Price · May 22, 2026
Fundamentals as of Mar 23, 2026
52W Range
$208–$293
10% of range
Analyst Rating
BUY
41 analysts
Price Target
$280
+29% upside
P/E (TTM)
22.5
ROE
-62.4%
Net Profit Margin
7.7%

LOW Stock Snapshot Price, market cap, P/E, EPS, ROE, debt/equity, 52-week range

Price
$216.34
Market Cap
$149.82B
P/E (TTM)
22.5
EPS (TTM)
$11.85
Revenue (TTM)
$86.29B
Div Yield
1.8%
ROE
-62.4%
Debt/Equity
—
52W Range
$208 – $293

LOW Stock Price Chart Daily OHLCV with technical indicators — pan, zoom, and customize your view

10-Year Performance Revenue, net income, margins and EPS trends

Revenue & Net Income $86.29B
4-point trend, -11.1%
2023-02-03 → 2026-01-30
EPS $11.85
4-point trend, +16.5%
2023-02-03 → 2026-01-30
Free Cash Flow $7.65B
4-point trend, +13.2%
2023-02-03 → 2026-01-30
Margins 7.7%
4-point trend, +0.8%
2023-02-03 → 2026-01-30

Valuation P/E, P/S, P/B, EV/EBITDA ratios — is the stock expensive or cheap?

Metric
5Y trend
LOW
Peer Median
P/E (TTM)
4-point trend, +6.1%
22.5
21.1
P/S (TTM)
4-point trend, +29.8%
1.7
1.3
P/B
4-point trend, -65.9%
-15.1
16.1
Price / FCF
4-point trend, +2.0%
19.6
—

Profitability Gross, operating and net margins; ROE, ROA, ROIC

Metric
5Y trend
LOW
Peer Median
Gross Margin
4-point trend, +0.8%
33.5%
33.4%
Operating Margin
4-point trend, +12.4%
11.8%
—
Net Profit Margin
4-point trend, +16.3%
7.7%
6.1%
ROA
4-point trend, -3.7%
13.7%
8.6%
ROE
4-point trend, -31.5%
-62.4%
69.5%
ROIC
4-point trend, -48.0%
-77.9%
—

Financial Health Debt, liquidity, solvency — balance sheet strength

Metric
5Y trend
LOW
Peer Median
Current Ratio
4-point trend, -2.0%
1.1
1.2
Quick Ratio
4-point trend, +41.3%
0.1
—

Growth Revenue, EPS and net income growth: YoY, 3Y CAGR, 5Y CAGR

Metric
5Y trend
LOW
Peer Median
Revenue YoY
4-point trend, -11.1%
3.1%
—
Revenue CAGR 3Y
4-point trend, -11.1%
-3.9%
—
Revenue CAGR 5Y
4-point trend, -11.1%
-0.75%
—
EPS YoY
4-point trend, +16.5%
-3.1%
—
Net Income YoY
4-point trend, +3.4%
-4.4%
—

Per Share Metrics EPS, book value per share, cash flow per share, dividend per share

Metric
5Y trend
LOW
Peer Median
EPS (Diluted)
4-point trend, +16.5%
$11.85
—

Capital Efficiency Asset turnover, inventory turnover, receivables turnover

Metric
5Y trend
LOW
Peer Median
Payout Ratio
4-point trend, +7.6%
39.6%
—

Dividends Yield, payout ratio, dividend history, 5Y CAGR

Dividend Yield
1.8%
Payout Ratio
39.6%
5Y Div CAGR
—
Ex-dateAmount
April 22, 2026$1.2000
Jan. 21, 2026$1.2000
Oct. 22, 2025$1.2000
July 23, 2025$1.2000
April 23, 2025$1.1500
Jan. 22, 2025$1.1500
Oct. 23, 2024$1.1500
July 24, 2024$1.1500
April 23, 2024$1.1000
Jan. 23, 2024$1.1000
Oct. 24, 2023$1.1000
July 25, 2023$1.1000
April 25, 2023$1.0500
Jan. 24, 2023$1.0500
Oct. 18, 2022$1.0500
July 19, 2022$1.0500
April 19, 2022$0.8000
Jan. 18, 2022$0.8000
Oct. 19, 2021$0.8000
July 20, 2021$0.8000

LOW Analyst Consensus Bullish and bearish analyst opinions, 12-month price target, upside

BUY 41 analysts
  • Strong Buy 10 24.4%
  • Buy 16 39.0%
  • Hold 14 34.1%
  • Sell 1 2.4%
  • Strong Sell 0 0.0%

12-Month Price Target

33 analysts · 2026-05-20
Median target $285.00 +31.7%
Mean target $279.76 +29.3%

Earnings History EPS actual vs estimate, surprise %, beat rate, next earnings date

Avg Surprise
0.03%
Period EPS Actual EPS Est Surprise
March 31, 2027 $3.03 $3.00 —
June 30, 2026 $3.03 $3.00 0.03%
March 31, 2026 $1.98 $1.96 0.02%
Dec. 31, 2025 $3.06 $3.00 0.06%
Sept. 30, 2025 $4.33 $4.29 0.04%
June 30, 2025 $2.92 $2.91 0.01%

Peer Comparison Key metrics vs sector peers

Ticker Market Cap P/E Rev YoY Net Margin ROE Gross Margin
LOW $149.82B 22.5 3.1% 7.7% -62.4% 33.5%
HD $373.09B 26.3 3.2% 8.6% 145.5% 33.3%
FND $6.81B 32.9 5.1% 4.5% 8.9% 43.6%
GRWG $90M -3.8 -14.4% -14.9% -23.1% 26.8%

Full Fundamentals All metrics by year — income statement, balance sheet, cash flow

Income Statement 14
Annual Income Statement data for LOW
Metric Trend 202620252024202320222021202020192018201720162015
Revenue 12-point trend, +53.5% $86.29B $83.67B $86.38B $97.06B $96.25B $89.60B $72.15B $71.31B $68.62B $65.02B $59.07B $56.22B
Cost of Revenue 12-point trend, +56.6% $57.40B $55.80B $57.53B $64.80B $64.19B $60.02B $49.20B $48.40B $46.19B $43.34B $38.50B $36.66B
Gross Profit 12-point trend, +47.7% $28.89B $27.88B $28.84B $32.26B $32.06B $29.57B $22.94B $22.91B $22.43B $21.67B $20.57B $19.56B
SG&A Expense 12-point trend, +26.5% $16.79B $15.68B $15.57B $20.33B $18.30B $18.53B $15.37B $17.41B $14.44B $14.38B $14.11B $13.27B
Operating Expenses 2-point trend, +5.7% · · · · · · · · · · $16.15B $15.28B
Operating Income 12-point trend, +111.9% $10.15B $10.47B $11.56B $10.16B $12.09B $9.65B $6.31B $4.02B $6.59B $5.85B $4.97B $4.79B
Pretax Income 12-point trend, +104.6% $8.75B $9.15B $10.18B $9.04B $11.21B $7.74B $5.62B $3.39B $5.49B $5.20B $4.42B $4.28B
Income Tax 12-point trend, +32.6% $2.09B $2.20B $2.45B $2.60B $2.77B $1.90B $1.34B $1.08B $2.04B $2.11B $1.87B $1.58B
Net Income 12-point trend, +146.6% $6.65B $6.96B $7.73B $6.44B $8.44B $5.83B $4.28B $2.31B $3.45B $3.09B $2.55B $2.70B
EPS (Basic) 12-point trend, +338.0% $11.87 $12.25 $13.23 $10.20 $12.07 $7.77 $5.49 $2.84 $4.09 $3.48 $2.73 $2.71
EPS (Diluted) 12-point trend, +337.3% $11.85 $12.23 $13.20 $10.17 $12.04 $7.75 $5.49 $2.84 $4.09 $3.47 $2.73 $2.71
Shares (Basic) 12-point trend, -43.4% 559,000,000 567,000,000 582,000,000 629,000,000 696,000,000 748,000,000 777,000,000 811,000,000 839,000,000 880,000,000 927,000,000 988,000,000
Shares (Diluted) 12-point trend, -43.4% 560,000,000 568,000,000 584,000,000 631,000,000 699,000,000 750,000,000 778,000,000 812,000,000 840,000,000 881,000,000 929,000,000 990,000,000
EBITDA 10-point trend, +66.0% $12.35B $12.44B $13.48B $12.14B $13.97B $11.24B $7.72B $5.62B $8.13B $7.44B · ·
Balance Sheet 27
Annual Balance Sheet data for LOW
Metric Trend 202620252024202320222021202020192018201720162015
Cash & Equivalents 12-point trend, +110.7% $982M $1.76B $921M $1.35B $1.13B $4.69B $716M $511M $588M $558M $405M $466M
Short-term Investments 12-point trend, +196.0% $370M $372M $307M $384M $271M $506M $160M $218M $102M $100M $307M $125M
Receivables 2-point trend, +1059.6% $1.09B $94M · · · · · · · · · ·
Inventory 12-point trend, +94.1% $17.30B $17.41B $16.89B $18.53B $17.61B $16.19B $13.18B $12.56B $11.39B $10.46B $9.46B $8.91B
Other Current Assets 12-point trend, +247.6% $1.21B $722M $949M $1.18B $1.05B $937M $1.26B $938M $689M $884M $391M $349M
Current Assets 12-point trend, +112.7% $20.95B $20.36B $19.07B $21.44B $20.06B $22.33B $15.32B $14.23B $12.77B $12.00B $10.56B $9.85B
PP&E (Net) 10-point trend, -11.9% · · $17.65B $17.57B $19.07B $19.16B $18.77B $18.43B $19.72B $19.95B $19.58B $20.03B
PP&E (Gross) 9-point trend, -1.5% · · · $34.91B $36.96B $36.70B $36.08B $35.86B $36.94B $36.92B $35.91B $35.44B
Accum. Depreciation 9-point trend, +12.6% · · · $17.34B $17.89B $17.55B $17.31B $17.43B $17.22B $16.97B $16.34B $15.41B
Goodwill 12-point trend, +2461.7% $3.94B $311M $311M $311M $311M $311M $303M $303M $1.31B $1.08B $154M $154M
Intangibles 4-point trend, +1422.7% $5.91B $277M · $169M $388M · · · · · · ·
Other Non-current Assets 12-point trend, -73.9% $352M $248M $838M $810M $1.04B $882M $905M $995M $915M $789M $511M $1.35B
Total Assets 12-point trend, +70.7% $54.14B $43.10B $41.80B $43.71B $44.64B $46.73B $39.47B $34.51B $35.29B $34.41B $31.27B $31.72B
Accounts Payable 12-point trend, +90.5% $9.76B $9.29B $8.70B $10.52B $11.35B $10.88B $7.66B $8.28B $6.59B $6.65B $5.63B $5.12B
Short-term Debt 10-point trend, +0.00 · · $0 $499M $0 $0 $1.94B $722M $1.14B $510M $43M $0
Current Liabilities 12-point trend, +108.2% $19.46B $18.76B $15.57B $19.51B $19.67B $18.73B $15.18B $14.50B $12.10B $11.97B $10.49B $9.35B
Capital Leases 12-point trend, +1035.7% $4.04B $3.63B $3.74B $3.51B $4.02B $3.89B $3.94B $709M $846M $815M $492M $356M
Deferred Tax 3-point trend, +971.1% $1.04B $0 · · · · · · · · · $97M
Other Non-current Liabilities 12-point trend, -12.1% $764M $779M $931M $862M $781M $991M $712M $1.15B $955M $843M $846M $869M
Total Liabilities 12-point trend, +194.5% $64.06B $57.33B $56.84B $57.96B $49.46B $45.30B $37.50B $30.86B $29.42B $27.97B $23.61B $21.75B
Long-term Debt 5-point trend, +64.0% $39.82B $35.32B $35.77B $33.27B $24.29B · · · · · · ·
Total Debt 10-point trend, +0.00 · · $0 $499M $0 $0 $1.94B $722M $1.14B $510M $43M $0
Retained Earnings 12-point trend, -213.0% $-10.84B $-14.80B $-15.64B $-14.86B $-5.12B $1.12B $1.73B $3.45B $5.42B $6.24B $7.59B $9.59B
AOCI 12-point trend, +363.1% $271M $288M $300M $307M $-36M $-136M $-136M $-209M $11M $-240M $-394M $-103M
Stockholders' Equity 12-point trend, -199.5% $-9.92B $-14.23B $-15.05B $-14.25B $-4.82B $1.44B $1.97B $3.64B $5.87B $6.43B $7.65B $9.97B
Liabilities + Equity 12-point trend, +70.7% $54.14B $43.10B $41.80B $43.71B $44.64B $46.73B $39.47B $34.51B $35.29B $34.41B $31.27B $31.72B
Shares Outstanding 12-point trend, -41.6% 561,000,000 560,000,000 574,000,000 601,000,000 670,000,000 731,000,000 763,000,000 801,000,000 830,000,000 866,000,000 910,000,000 960,000,000
Cash Flow 18
Annual Cash Flow data for LOW
Metric Trend 202620252024202320222021202020192018201720162015
D&A 12-point trend, +38.3% $2.19B $1.97B $1.92B $1.98B $1.88B $1.59B $1.41B $1.61B $1.54B $1.59B $1.59B $1.59B
Stock-based Comp 12-point trend, +107.6% $247M $221M $210M $223M $230M $155M $98M $74M $99M $90M $117M $119M
Deferred Tax 12-point trend, +323.7% $264M $8M $5M $-188M $140M $-99M $139M $-157M $56M $9M $-63M $-118M
Amort. of Intangibles 7-point trend, +259.0% $140M $13M $13M $28M $32M $59M $39M · · · · ·
Restructuring 3-point trend, +235.7% · · · · · · · · · $47M $34M $14M
Other Non-cash 10-point trend, -39.7% $505M $467M $-1.72B $136M $-581M $3.56B $-1.63B $2.35B $-77M $837M · ·
Operating Cash Flow 12-point trend, +100.1% $9.86B $9.62B $8.14B $8.59B $10.11B $11.05B $4.30B $6.19B $5.07B $5.62B $4.78B $4.93B
CapEx 12-point trend, +151.5% $2.21B $1.93B $1.96B $1.83B $1.85B $1.79B $1.48B $1.17B $1.12B $1.17B $1.20B $880M
Investing Cash Flow 11-point trend, -813.2% $-12.26B $-1.74B $-1.90B $-1.31B $-1.65B $-1.89B $-1.37B $-1.08B $-1.44B $-3.36B $-1.34B ·
Debt Issued 6-point trend, +220.6% · · · · · · $3.97B $0 $2.97B $3.27B $1.72B $1.24B
Net Debt Issued 6-point trend, +140.1% · · · · · · $2.86B $-326M $119M $2.09B $1.17B $1.19B
Stock Repurchased 12-point trend, -94.6% $211M $4.05B $6.14B $14.12B $13.01B $4.97B $4.31B $3.04B $3.19B $3.60B $3.92B $3.90B
Net Stock Activity 12-point trend, +94.6% $-211M $-4.05B $-6.14B $-14.12B $-13.01B $-4.97B $-4.31B $-3.04B $-3.19B $-3.60B $-3.92B $-3.90B
Dividends Paid 12-point trend, +220.7% $2.64B $2.57B $2.53B $2.37B $1.98B $1.70B $1.62B $1.46B $1.29B $1.12B $957M $822M
Financing Cash Flow 11-point trend, +146.4% $1.62B $-7.05B $-6.67B $-7.05B $-12.02B $-5.19B $-2.73B $-5.12B $-3.61B $-2.09B $-3.49B ·
Net Change in Cash 12-point trend, -1138.7% $-779M $840M $-427M $215M $-3.56B $3.97B $205M $-77M $30M $153M $-61M $75M
Taxes Paid 12-point trend, +63.3% $2.50B $1.65B $3.70B $1.72B $2.73B $1.59B $1.42B $1.32B $1.67B $2.22B $2.06B $1.53B
Free Cash Flow 12-point trend, +89.0% $7.65B $7.70B $6.18B $6.76B $8.26B $9.26B $2.81B $5.02B $3.94B $4.45B $3.59B $4.05B
Profitability 8
Annual Profitability data for LOW
Metric Trend 202620252024202320222021202020192018201720162015
Gross Margin 12-point trend, -3.8% 33.5% 33.3% 33.4% 33.2% 33.3% 33.0% 31.8% 32.1% 34.1% 34.5% 34.8% 34.8%
Operating Margin 10-point trend, +30.9% 11.8% 12.5% 13.4% 10.5% 12.6% 10.8% 8.8% 5.6% 9.6% 9.0% · ·
Net Margin 12-point trend, +60.6% 7.7% 8.3% 8.9% 6.6% 8.8% 6.5% 5.9% 3.2% 5.0% 4.8% 4.3% 4.8%
Pretax Margin 12-point trend, +33.2% 10.1% 10.9% 11.8% 9.3% 11.6% 8.6% 7.8% 4.8% 8.0% 8.0% 7.5% 7.6%
EBITDA Margin 10-point trend, +25.1% 14.3% 14.9% 15.6% 12.5% 14.5% 12.6% 10.7% 7.9% 11.8% 11.4% · ·
ROA 12-point trend, +67.0% 13.7% 15.8% 18.3% 14.2% 17.9% 12.0% 10.8% 6.5% 9.6% 8.9% 7.8% 8.2%
ROE 12-point trend, -339.5% -62.4% -50.3% -51.2% -47.5% -264.1% 211.8% 193.3% 51.2% 59.4% 47.4% 31.8% 26.1%
ROIC 10-point trend, -255.5% -77.9% -55.9% -58.3% -52.6% -189.1% 506.2% 122.8% 62.7% 59.0% 50.1% · ·
Liquidity & Solvency 3
Annual Liquidity & Solvency data for LOW
Metric Trend 202620252024202320222021202020192018201720162015
Current Ratio 12-point trend, -0.1% 1.1 1.1 1.2 1.1 1.0 1.2 1.0 1.0 1.1 1.0 1.0 1.1
Quick Ratio 12-point trend, +98.6% 0.1 0.1 0.1 0.1 0.1 0.3 0.1 0.1 0.1 0.1 0.1 0.1
Debt / Equity 10-point trend, +0.00 · · 0.0 -0.0 0.0 0.0 1.0 0.2 0.2 0.1 0.0 0.0
Efficiency 3
Annual Efficiency data for LOW
Metric Trend 202620252024202320222021202020192018201720162015
Asset Turnover 12-point trend, +3.9% 1.8 1.9 2.0 2.1 2.0 1.8 1.8 2.0 1.9 1.9 1.8 1.7
Inventory Turnover 12-point trend, -15.8% 3.3 3.2 3.3 3.4 3.7 3.8 3.7 3.9 3.8 4.0 3.9 3.9
Receivables Turnover 145.8 · · · · · · · · · · ·
Per Share 6
Annual Per Share data for LOW
Metric Trend 202620252024202320222021202020192018201720162015
Book Value / Share 12-point trend, -270.2% $-17.68 $-25.41 $-26.22 $-23.72 $-7.19 $1.97 $2.58 $4.55 $7.08 $7.43 $8.41 $10.38
Revenue / Share 12-point trend, +171.3% $154.08 $147.31 $147.91 $153.82 $137.70 $119.46 $92.74 $87.82 $81.69 $73.80 $63.59 $56.79
Cash Flow / Share 12-point trend, +253.8% $17.61 $16.95 $13.94 $13.61 $14.47 $14.73 $5.52 $7.63 $6.03 $6.38 $5.15 $4.98
Cash / Share 12-point trend, +260.6% $1.75 $3.14 $1.60 $2.24 $1.69 $6.42 $0.94 $0.64 $0.71 $0.64 $0.45 $0.49
Dividend / Share 12-point trend, +446.0% $5 $5 $4 $4 $3 $2 $2 $2 $2 $1 $1 $1
EPS (TTM) 12-point trend, +337.3% $11.85 $12.23 $13.20 $10.17 $12.04 $7.75 $5.49 $2.84 $4.09 $3.47 $2.73 $2.71
Growth Rates 10
Annual Growth Rates data for LOW
Metric Trend 202620252024202320222021202020192018201720162015
Revenue YoY 5-point trend, -58.0% 3.1% -3.1% -11.0% 0.84% 7.4% · · · · · · ·
Revenue CAGR 3Y 3-point trend, -218.2% -3.9% -4.6% -1.2% · · · · · · · · ·
Revenue CAGR 5Y -0.75% · · · · · · · · · · ·
EPS YoY 5-point trend, -105.6% -3.1% -7.3% 29.8% -15.5% 55.4% · · · · · · ·
EPS CAGR 3Y 3-point trend, -73.1% 5.2% 0.52% 19.4% · · · · · · · · ·
EPS CAGR 5Y 8.9% · · · · · · · · · · ·
Net Income YoY 5-point trend, -109.8% -4.4% -10.0% 20.0% -23.8% 44.7% · · · · · · ·
Net Income CAGR 3Y 3-point trend, -88.7% 1.1% -6.2% 9.8% · · · · · · · · ·
Net Income CAGR 5Y 2.7% · · · · · · · · · · ·
Dividend CAGR 5Y 9.1% · · · · · · · · · · ·
Valuation (TTM) 17
Annual Valuation (TTM) data for LOW
Metric Trend 202620252024202320222021202020192018201720162015
Revenue TTM 12-point trend, +53.5% $86.29B $83.67B $86.38B $97.06B $96.25B $89.60B $72.15B $71.31B $68.62B $65.02B $59.07B $56.22B
Net Income TTM 12-point trend, +146.6% $6.65B $6.96B $7.73B $6.44B $8.44B $5.83B $4.28B $2.31B $3.45B $3.09B $2.55B $2.70B
Market Cap 12-point trend, +130.3% $149.82B $145.62B $125.99B $129.80B $157.44B $121.97B $88.69B $77.79B $84.25B $63.47B $65.21B $65.05B
Enterprise Value 10-point trend, +93.5% · · $124.76B $128.56B $156.04B $116.77B $89.76B $77.78B $84.69B $63.32B $64.54B $64.46B
P/E 12-point trend, -9.9% 22.5 21.3 16.6 21.2 19.5 21.5 21.2 34.2 24.8 21.1 26.2 25.0
P/S 12-point trend, +50.1% 1.7 1.7 1.5 1.3 1.6 1.4 1.2 1.1 1.2 1.0 1.1 1.2
P/B 12-point trend, -331.5% -15.1 -10.2 -8.4 -9.1 -32.7 84.9 45.0 21.3 14.3 9.9 8.5 6.5
P / Tangible Book · · · · · 108.3 · · · · · ·
P / Cash Flow 12-point trend, +15.1% 15.2 15.1 15.5 15.1 15.6 11.0 20.6 12.6 16.6 11.3 13.6 13.2
P / FCF 12-point trend, +21.9% 19.6 18.9 20.4 19.2 19.1 13.2 31.5 15.5 21.4 14.3 18.2 16.1
EV / EBITDA 8-point trend, +8.7% · · 9.3 10.6 11.2 10.4 11.6 13.8 10.4 8.5 · ·
EV / FCF 10-point trend, +26.9% · · 20.2 19.0 18.9 12.6 31.9 15.5 21.5 14.2 18.0 15.9
EV / Revenue 10-point trend, +26.0% · · 1.4 1.3 1.6 1.3 1.2 1.1 1.2 1.0 1.1 1.1
Dividend Yield 12-point trend, +39.7% 1.8% 1.8% 2.0% 1.8% 1.3% 1.4% 1.8% 1.9% 1.5% 1.8% 1.5% 1.3%
Earnings Yield 12-point trend, +11.0% 4.4% 4.7% 6.0% 4.7% 5.1% 4.6% 4.7% 2.9% 4.0% 4.7% 3.8% 4.0%
Payout Ratio 12-point trend, +30.0% 39.6% 36.9% 32.8% 36.8% 23.5% 29.2% 37.8% 62.9% 37.4% 36.3% 37.6% 30.5%
Annual Payout 12-point trend, +220.7% $2.64B $2.57B $2.53B $2.37B $1.98B $1.70B $1.62B $1.46B $1.29B $1.12B $957M $822M

Financial Statements Income statement, balance sheet, cash flow — annual, last 5 years

Income Statement
2026-01-302025-01-312024-11-012024-08-022024-05-03
Revenue $86.29B$83.67B———
Gross Margin % 33.5%33.3%———
Operating Margin % 11.8%12.5%———
Net Income $6.65B$6.96B———
Diluted EPS $11.85$12.23———
Balance Sheet
2026-01-302025-01-312024-11-012024-08-022024-05-03
Current Ratio 1.11.1———
Quick Ratio 0.10.1———
Cash Flow
2026-01-302025-01-312024-11-012024-08-022024-05-03
Free Cash Flow $7.65B$7.70B———

LOW AI Analyst Panel — Bullish and Bearish Views 2026Q2 debate: Claude, Grok, Gemini, ChatGPT on the stock's prospects

Round 1 — Opening Takes

Grok NEUTRAL 0.75
↑ Bullish

I see Lowe's strongest bullish case in its accelerating profitability, positioning it to thrive if housing renovations surge as high mortgage rates sideline new builds. Gross margin has climbed to 33.47%, showing Lowe's is squeezing more profit from each dollar of sales amid cost controls. Net margin expanded to 7.71%, which means the bottom line is growing faster than the top, fueling real earnings power. EPS hit 11.88, up sharply, proving the business model delivers when demand firms up. At 20.6 times earnings, it's cheaper than Home Depot's 23.8, leaving room for multiple expansion.

↓ Bearish

My biggest bearish worry for Lowe's is that its extreme ROE masks leverage and buybacks propping up returns in a fragile housing cycle that could crack. ROE at 264% dwarfs Home Depot's 130%, but that's often inflated by debt or shrinking shares rather than organic growth, vulnerable to any sales dip. P/B ratio towers at 85, signaling the market prices in flawless execution Lowe's can't sustain if remodels slow. Current ratio of 1.07 is barely adequate, meaning liquidity is thin for weathering a recession. Recent price swings from 210 to 237 underscore the downside risk.

Claude NEUTRAL 0.62
↑ Bullish

Lowe's is printing real operational leverage — margins are expanding and the stock is trading at a reasonable multiple despite that strength. Gross margin sits at 33.47%, up from 33.19% a year ago, which means the company is either pricing better or managing costs harder in a competitive market. Net margin is 7.71%, also up. The P/E of 20.56 is below Home Depot's 23.76, yet LOW is growing earnings faster. If housing activity holds and the company sustains this margin trajectory, the stock has room to re-rate upward.

↓ Bearish

That ROE of 264% is a red flag, not a feature — it signals the company is levered to the gills or running an aggressive buyback that's inflating returns on paper. The current ratio of 1.08 is barely above the comfort line, meaning balance sheet flexibility is tight. More concerning: EPS jumped from $2.89 in Q4 to $11.88 TTM, but that's a data artifact — the quarterly breakdown shows Q2 EPS at $1.88 and Q1 at $1.78, suggesting the TTM number is stale or the company is front-loading earnings. If housing demand softens or rates stay elevated, a levered retailer with thin margins gets crushed fast.

Gemini NEUTRAL 0.75
↑ Bullish

Lowe's is demonstrating a masterclass in operational efficiency that is widening its competitive moat. The company has pushed its gross margin to 33.47%. This indicates that Lowe's is successfully managing its supply chain costs and pricing strategy even in a challenging retail environment. Furthermore, the trailing twelve-month EPS has surged to 11.87. This shows that the bottom line is growing significantly faster than the top line, proving that management is effectively squeezing more profit out of every dollar of revenue generated.

↓ Bearish

The current valuation is propped up by extreme financial engineering that obscures the true health of the business. The reported ROE is a staggering 264.53%. This figure is likely inflated by aggressive share buybacks or heavy debt loads rather than pure operational excellence, which makes the balance sheet look far more efficient than it really is. Additionally, the current ratio sits at just 1.07. This leaves very little margin for error if the housing market faces a sudden liquidity crunch or a sharp drop in consumer spending.

Chatgpt NEUTRAL 0.56
↑ Bullish

I think the strongest bullish case is that Lowe's profitability and capital efficiency can power durable upside into 2026Q2. ROE TTM: 264.53%. That level signals extraordinary profitability relative to equity, implying strong earnings leverage and potential per-share upside if buybacks continue. Gross margin TTM: 33.47%. That margin implies pricing power and cost discipline, supporting earnings resilience. P/E TTM: 20.56. That multiple sits below peer HD's 23.76, signaling a valuation cushion against risk if the earnings trend holds.

↓ Bearish

I think the strongest bearish case is that valuation and balance-sheet signals imply more risk than reward if growth slows. P/B Annual: 85.08%. That huge multiple implies investors expect outsized growth or substantial asset value; if those assumptions fade, multiple compression can hit the stock. Current ratio quarterly: 1.0767. Liquidity is barely comfortable, making Lowe's vulnerable to working-capital shocks in a stressed macro environment. Net profit margin TTM: 7.71%. That level is solid but not exceptional; in a softer consumer backdrop, margins could retract.

Round 2 — Responses & Rebuttals

Grok

ChatGPT, I disagree with hailing the 264% ROE as proof of strong earnings leverage. That sky-high return stems mostly from buybacks eroding the equity base, masking underlying vulnerabilities rather than signaling durable profitability. It leaves per-share metrics exposed to any housing slowdown. Pair it with the current ratio at 1.07, and Lowe's has scant liquidity buffer for tough times ahead.

Claude

I need to push back on Gemini here — the ROE inflation story is real, but we're missing the forest for the trees. Yes, 264% is propped up by buybacks and leverage, but that's not a bug, it's the business model working. Home Depot runs a 130% ROE the same way. The real question is whether the underlying cash generation supports the capital structure. Lowe's gross margin at 33.47% and net margin at 7.71% are both expanding, which means the operational engine is actually getting stronger, not just financial engineering masking decay. If the business were deteriorating underneath, those margins would be contracting even as ROE stayed inflated. They're not.

Gemini

Claude, your point about the EPS data artifact is the most critical observation on this panel. You correctly identified that the TTM EPS of 11.88 is heavily distorted by historical quarterly volatility, masking the actual run rate. That figure is 20.56 times the current price, but that ratio is misleading if the denominator is artificially inflated. We are looking at a company that is essentially reporting a trailing earnings number that does not reflect its current quarterly performance, which makes the valuation look much more attractive than it truly is.

Chatgpt

Claude, your ROE concern is valid but incomplete. Lowe's ROE sits at 264% - an extreme read that likely reflects buybacks and leverage more than pure operating strength. That means the figure isn't a clean signal of sustainable profitability; it can mislead about real earnings power. If housing activity slows or debt levels rise, that inflated ROE could retreat and the stock multiple could compress.

Round 3 — Final Rebuttals

G
Grok

Gemini, calling the TTM EPS of 11.88 heavily distorted overlooks its upward trend from prior quarterly levels around $4, capturing genuine profitability acceleration. That figure justifies the 20.6 P/E as reasonably priced for a home improvement leader with expanding margins. The recent quarterly run rate near $2 per share is stable, not declining, so the trailing multiple isn't misleading — it's a vote of confidence in sustained housing renovation demand.

C
Claude

I want to widen the frame here, because we're all circling the same balance-sheet metrics and missing what's actually moving LOW's stock. Housing starts have been flat to down since late 2024, but Lowe's same-store sales have held up — which tells me the company is capturing share from smaller competitors and benefiting from a shift toward renovation over new construction. That's a structural tailwind, not cyclical. But here's what concerns me more: the housing market is pricing in a Fed rate-cut cycle that hasn't materialized. If the Fed stays at 5.25% through 2026Q2, mortgage rates stay elevated, and the renovation cycle that's propping up Lowe's margins gets compressed. That's the macro regime risk nobody on this panel has named yet. The stock isn't vulnerable because of leverage or buybacks — it's vulnerable because the entire thesis depends on housing activity staying resilient in a high-rate environment. That's a binary bet, and the market hasn't priced the downside if rates don't fall.

G
Gemini

I want to widen the frame, as we are ignoring the macro regime shift currently punishing home improvement retailers. The 30-year mortgage rate remains stubbornly high, which is forcing a massive shift from 'move-up' home buying to 'stay-put' renovations. This creates a structural tailwind for Lowe's that isn't captured in a P/E of 20.56. That multiple represents the price investors pay for every dollar of annual earnings, and it is currently discounting a recession that may not arrive. If the Fed pivots to rate cuts by 2026Q2, the current valuation could look like a massive bargain for a company dominating the repair and maintenance cycle.

C
Chatgpt

Claude, I think your margins expand claim deserves a realism check. Gross margin is 33.47%. That level can reflect mix shifts or short-term cost controls, not necessarily durable pricing power across cycles. If housing demand falters or input costs rise, Lowe's margins could compress even if revenue stays firm, which would trim earnings power and the upside in the stock.

Price Forecasts

Model 3M Target 6M Target Reasoning
G Grok 3M Target $232.00 6M Target $245.00 Reasoning I think Lowe's improving margins and renovation tailwind justify a modest re-rating toward Home Depot's P/E, but thin liquidity caps aggressive upside into 2026Q2. The key catalyst is the 2025Q3 earnings report in late August, where comp-store sales beating 2% would confirm share gains in remodels and push toward my 6-month target. The big risk is mortgage rates staying above 7% through year-end if the Fed delays cuts, compressing demand and margins. At 22 times trailing EPS of $11.88, my $245 target means the market pays up fairly for sustained profitability matching peers like HD.
C Claude 3M Target $232.00 6M Target $245.00 Reasoning Lowe's is a renovation play that works if mortgage rates stay elevated—but breaks if the Fed cuts aggressively and housing demand normalizes. My thesis: the company's margin expansion (33.47% gross, 7.71% net) is real operational leverage, not financial engineering, and will sustain through 2026Q2 if the stay-put renovation cycle holds. Catalyst: Q1 2026 earnings beat on same-store sales, proving share capture from smaller competitors persists despite flat housing starts. Risk: Fed cuts 150+ basis points by mid-2026, mortgage rates fall below 6%, and move-up buying resurges—collapsing Lowe's pricing power. At 20.6 times trailing earnings, the stock is fairly valued for a 3–5% earnings growth scenario, leaving room for multiple expansion if margins hold. Current price $220.91; my 6-month target assumes modest multiple re-rating to 21.5x on sustained profitability.
G Gemini 3M Target $235.00 6M Target $250.00 Reasoning My thesis is that Lowe's will benefit from a 'stay-put' renovation cycle as high mortgage rates continue to freeze the existing housing market. The primary catalyst is the Federal Reserve's anticipated rate cut in early 2026, which would lower borrowing costs for home improvement loans and spark a surge in discretionary remodeling. Conversely, the biggest risk is a sharp rise in unemployment, which would force consumers to slash non-essential home repairs. Currently, the stock trades at a P/E of 20.56, meaning the market is paying roughly 20 dollars for every dollar of annual earnings, which is a reasonable entry point for a dominant retailer with expanding margins.
C Chatgpt 3M Target $226.50 6M Target $235.00 Reasoning I think Lowe's offers modest upside into 2026Q2 as margins stay resilient, buybacks lift per-share results, and the cash-return profile remains attractive relative to peers. Catalyst: a stronger-than-expected 2026Q2 print with higher gross margins and raised full-year guidance, which would confirm the operating lever is still turning. Risk: a material housing slowdown or persistent high rates that curb remodeling activity and threaten margin durability. Current price is around 220.91, anchoring this view and leaving room for upside if the print confirms the margin expansion story.

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