Lowe's Companies, Inc. (LOW) Stock Analysis - 2025-11-22
Comprehensive stock analysis for Lowe's Companies, Inc. (LOW) including price targets, technicals, and outlook. Updated 2025-11-22.
Price Action Analysis
The daily chart shows a downtrend from mid-September to late October, followed by a period of consolidation and a recent uptick in volume and price. The weekly chart reveals a longer-term uptrend that began in late 2022, with a significant peak in early 2024, followed by a correction. The recent high volume on the daily chart suggests increased investor interest and potential capitulation or accumulation.
News & Catalysts
News & Catalysts
Lowe's Companies, Inc. (LOW) recently reported its third-quarter earnings, surpassing profit expectations with an adjusted EPS of $3.06, exceeding the consensus estimate of $2.97. This positive earnings surprise, announced on November 19, 2025, led to a 5.2% increase in the stock price. Although revenue slightly missed expectations, the company raised its full-year sales forecast to $86 billion at the midpoint, while moderating its adjusted EPS guidance to approximately $12.25.
Analyst sentiment has been mixed, with some price target adjustments. Royal Bank of Canada lowered its target to $252 from $260, maintaining a "sector perform" rating. Conversely, KeyCorp raised its price objective to $300 from $260, reiterating an "overweight" rating. The consensus analyst rating for LOW is "Moderate Buy" with an average price target around $275.32.
Recent insider selling activity has been noted, with Executive Vice Presidents Brandon J. Sink and Joseph Michael Mcfarland selling shares in September 2025. This occurred prior to the recent price movement and earnings report.
Fundamental analysis
Key Metrics and Financial Health
| Metric | Value |
|---|---|
| Market Cap | $127.54B |
| Enterprise Value | $147.51B |
| Forward P/E | 17.79 |
| PEG Ratio | 2.45 |
| P/S Ratio | 2.03 |
| P/B Ratio | 5.35 |
| Debt/Equity Ratio | 1.04 |
| Return on Equity | 29.36% |
| Gross Profit Margin | 26.01% |
| Operating Margin | 11.44% |
| Net Profit Margin | 7.37% |
Earnings and Estimates
| Metric | Value |
|---|---|
| Latest EPS (Q3 2025) | $3.06 |
| Consensus EPS (Q3 2025) | $2.97 |
| EPS Surprise (Q3 2025) | 3.03% |
| Forward EPS Guidance | ~$12.25 |
Ownership and Recommendations
| Metric | Value |
|---|---|
| Institutional Holders | 75.00% |
| Insider Ownership | 0.10% |
| Analyst Rating | Moderate Buy |
Key Takeaways: Lowe's demonstrates a solid market position with a significant market cap. While the forward P/E suggests potential overvaluation, a PEG ratio of 2.45 indicates growth expectations are factored in. The company maintains healthy profitability margins, with a strong Return on Equity. The recent Q3 earnings beat provides a positive short-term catalyst, and the raised sales forecast indicates management confidence. However, the insider selling warrants monitoring.
Market & Sentiment Context
The broader market, particularly the retail and home improvement sectors, can be influenced by macroeconomic factors such as interest rate policies and consumer spending trends. Recent optimism around potential Federal Reserve interest rate cuts could be a tailwind for consumer discretionary spending, benefiting companies like Lowe's. However, ongoing inflation and a cautious consumer might present headwinds. The unusual volume on the daily chart could indicate increased investor attention following the earnings report, potentially signaling a shift from distribution to accumulation or a short-covering rally.
Investment Outlook
The recent price action and earnings beat suggest a potential short-term upward trend, supported by the raised sales forecast. However, the mixed analyst ratings and previous insider selling indicate a degree of caution. Investors should monitor upcoming economic data and consumer confidence reports. The stock's current trading at a discount to its 52-week high, coupled with a "Moderate Buy" consensus, presents a cautiously optimistic outlook.
Key Buy/Sell Levels
The current price for Lowe's Companies, Inc. (LOW) is $234.29.
Support Levels:
- $229.02 - $228.43 (Previous Day's Low/Close): This zone, representing the recent lows, has been touched today. It represents immediate support.
- ~$220: This level can be identified as a significant support zone from the daily chart, where volume appears to cluster. It is approximately 6.09% or $14.29 below the current price. This level has not been touched recently.
Resistance Levels:
- ~$240: This level acted as resistance in early October and has shown some congestion. It is approximately 2.44% or $5.71 above the current price and has not been touched recently.
- ~$254: This level represents a significant resistance zone from the daily chart, where the price experienced a sharp decline in mid-September. It is approximately 8.24% or $19.71 above the current price and has not been touched recently.
These levels correspond to previous price action. The support at approximately $220 aligns with a zone of increased volume and a prior dip on the daily chart. The resistance at $240 reflects a prior consolidation area, while the higher resistance at $254 marks a more significant peak before the recent downtrend.
Summary & Takeaways
Lowe's Companies, Inc. (LOW) is showing signs of renewed investor interest, evidenced by a recent surge in trading volume and a price increase following a better-than-expected Q3 earnings report. The company has raised its sales forecast, signaling management's confidence in future performance. However, the stock faces resistance at key technical levels around $240 and $254, while immediate support is observed near $229-$228 and a more significant zone at $220. Investors should closely monitor macroeconomic indicators and consumer spending trends, as well as any further analyst commentary, to gauge the sustainability of the current uptrend.