| Factor | Score | Distribution | Value | Avg | Rank |
|---|---|---|---|---|---|
Valuation | 71 | 16.6x | 17.8x | Top tier | |
Growth | 39 | 8.2% | 7.1% | Bottom tier | |
Quality | 71 | 26.1% | 4.5% | Top tier | |
Safety | 34 | 3.2x | 2.6x | Bottom tier | |
Capital Return | 62 | 2.41% | 2.12% | Around median | |
Momentum | 13 | -19.8% | 2.9% | Bottom tier | |
Sentiment | 46 | 21 | 3 | Around median |
Estimates — analyst targets and a simplified DCF, not investment advice.
Ten ratios that matter, each compared against its sector median and average — so you can see whether a number is rich or cheap relative to peers in the same sector.
Lowe's sells home improvement, building, and maintenance products through stores and digital channels, serving do-it-yourself (DIY) customers, professional (Pro) customers, and Home Services customers. Its Total Home strategy combines assortment, inventory, rapid fulfillment, loyalty, and services, while DIY accounts for more than 60% of the company's business, making discretionary household spending a critical factor in its results. The company is expanding its presence among larger professional customers through Foundation Building Materials (FBM) and Artisan Design Group (ADG), while its Home Services business targets replacement projects that homeowners prefer to have the company perform.
In quarter 2 of fiscal year 2027, sales reached $26 billion, up 8.3% year over year, and comparable sales increased 0.2%; growth in Pro, Online, and Home Services offset weak discretionary DIY spending and unfavorable weather during the Memorial Day holiday. Comparable average ticket increased 2.3%, driven by modest price inflation and Pro strength, but comparable transactions declined 2.1%. 9 of 13 merchandise departments generated positive comparable sales, with strength in building materials, appliances, paint, kitchens and baths, lawn and garden, and tools.
Gross margin in quarter 2 of fiscal year 2027 was approximately 33%, down 80 basis points, affected by margin dilution from the consolidation of FBM and ADG, while adjusted operating margin was 14%, down 62 basis points. GAAP diluted earnings per share reached $4.27, and adjusted earnings per share reached $4.40, with both figures including a benefit of $0.11 per share from tariff refunds. The company generated free cash flow of $3.1 billion, while EDGAR data for the twelve-month period ending in 2026 show revenue of $88.4 billion, net income of $6.6 billion, and earnings per share of approximately $11.86.
The average analyst price target is $256.71, within a wide range of $232 to $276, compared with a consensus rating of "Buy." The average target and highest target are below the top of the 52-week range of $293.06, while the stock's annual range extends from $199.4 to $293.06, reflecting a reassessment associated with weak DIY spending, the reduction in the fiscal year 2026 outlook, and margin pressures. The available information does not include a usable price-to-earnings ratio, so Lowe's valuation here is based on the target range and operating outlook rather than an earnings multiple.
Figures in the text are as of 2026-08-27; the live price is shown at the top of the page.
Lowe's generated sales of $26 billion, up 8.3% year over year, and comparable sales increased 0.2%. Diluted earnings per share were $4.27 on a GAAP basis and $4.40 on an adjusted basis, with both figures including a $0.11 benefit from tariff refunds. Gross margin was 33%, and adjusted operating margin was 14%, down 80 and 62 basis points, respectively. The company also generated free cash flow of $3.1 billion during the quarter.
The updated outlook reflected continued customer caution and weak spending on discretionary DIY projects, along with interest rates, inflation, fuel, and housing affordability pressures. FBM and ADG also face weak residential demand, with ADG having 100% exposure and FBM having 45% exposure to residential construction. The company therefore targets sales of approximately $92 billion, roughly flat comparable sales, and an adjusted operating margin of approximately 11.6%. Its adjusted earnings per share outlook is approximately $12.25 for fiscal year 2026, with an expected decline of approximately 7% in quarter 3 of fiscal year 2026 compared with the corresponding period.
Automated analysis for informational purposes only — not investment advice.
The number of questions Mylow has handled for customers and employees has exceeded 25 million since its launch. Management said the conversion rate of customers who use it while shopping online is three times that of those who do not. This coincided with digital sales growth of 15.7% in quarter 2 of fiscal year 2027, the second consecutive quarter in which digital growth exceeded 15%. Mylow works alongside improvements to Lowes.com, the app, free delivery and same-day delivery options, and the digital marketplace.
Lowe's is using the two acquisitions to increase planned professional customer spending and expand its presence among larger Pro customers over the long term. However, ADG is fully exposed to residential construction, while FBM's residential exposure is approximately 45%, compared with 55% for FBM's commercial business. Management said on August 19, 2026, that weak homebuilding is pressuring revenue and earnings at both companies during the second half. At the same time, the FBM acquisition added approximately $500 million to inventory compared with the previous period.
In the quarter ended July 31, 2026, Lowe's recorded a benefit of approximately $80 million from IEEPA tariff refunds. This benefit added approximately 30 basis points to gross margin and $0.11 to earnings per share, but it was largely offset by higher fuel and transportation costs. Management said the refund represents a small portion of the total tariffs paid during the previous twelve to eighteen months. The company did not include any potential additional refunds in its second-half outlook because of uncertainty regarding their timing.
The Pro business continued to grow in quarter 2 of fiscal year 2027, led by small and medium-sized professional customers. Rough plumbing delivered six consecutive quarters of growth, while the paint, electrical, and millwork categories recorded four or five consecutive quarters of positive performance. Lowe's supports these customers through MyLowe's Pro Rewards and digital tools for planning, estimating, and business management, along with inventory and fulfillment. However, the company's survey showed stable backlogs among Pro customers as homeowners shifted toward smaller repair and maintenance projects instead of large remodeling projects.
