
Lowe's (LOW) Stock Forecast & Price Target
Lowe's (LOW) Analyst Ratings
Bulls say
Lowe's Companies has demonstrated solid sales performance, with total sales increasing by 10.9% to $20.6 billion, supported by a positive trajectory in big-ticket product sales, which rose 4.0% year-over-year in the fourth quarter. The firm's strategic enhancements in the Pro segment, including an expanded dedicated salesforce and improved merchandising, have contributed to significant growth in sales from professional customers, highlighting a shift towards a more balanced revenue stream. Additionally, the growth in online sales by 10.5% and an optimistic forecast from the National Association of Realtors for a 14% year-over-year increase in existing home sales for 2026 further reinforce a favorable outlook for Lowe's within the home improvement market.
Bears say
Lowe's Companies faces operational challenges indicated by an anticipated contraction in operating margin from 12.0% to 11.8% and a significant decline in gross margin percentage by 75 basis points year-over-year due to margin dilution from recent acquisitions, such as FBM and ADG. Additionally, the firm's sales growth is projected to slow or become negative, primarily driven by a decrease in transaction volumes and potential shifts in consumer spending away from home improvement, which may hinder the company's margin expansion goals. The company's 2026 guidance reflects these pressures, suggesting a headwind to adjusted EBIT margins that could dampen investors' outlook on Lowe's financial performance moving forward.
This aggregate rating is based on analysts' research of Lowe's and is not a guaranteed prediction by Public.com or investment advice.
Lowe's (LOW) Analyst Forecast & Price Prediction
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