
Lowe's (LOW) Stock Forecast & Price Target
Lowe's (LOW) Analyst Ratings
Bulls say
Lowe's Companies has demonstrated a positive financial trajectory, with total sales increasing by 1.6% to $24.0 billion in the recent quarter, indicating effective inventory management and strong in-stock conditions across both Pro and DIY segments. The company reported an adjusted operating margin of 14.7%, a notable gain of 23 basis points, alongside a gross margin expansion of 34 basis points to 33.8%, reflecting the benefits of its perpetual productivity initiatives and improved shrink management. Additionally, projected annualized spending on home improvement and maintenance is expected to grow from $510 billion to $516 billion over the next four quarters, supporting a favorable outlook for the company's continued expansion in the domestic home improvement market.
Bears say
Lowe's Companies is experiencing stagnation in key financial metrics, with identical store sales (comps) projected to remain flat to +1.0%, indicating a lack of growth momentum compared to the consensus forecast of +0.4%. The company's gross margin is expected to hold steady at around 33.3% for 2024, driven by PPI initiatives that counterbalance investments in professional services and supply chain, while adjusted operating margin may fall slightly to 12.2-12.3%. Furthermore, the second quarter saw a 5.6% dip in adjusted EPS, signifying challenges in profitability amid an anticipated flat performance in the home improvement market for the upcoming years.
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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