Mooresville, North Carolina-based Lowe's Companies, Inc. (LOW) operates as a home improvement retailer. With a market cap of $129.2 billion, the company offers tools, appliances, building supplies, carpet, bathroom, and lighting products.

Shares of leading home improvement retailer have underperformed the broader market over the past year. LOW has declined 1.3% over this time frame, while the broader S&P 500 Index ($SPX) has rallied nearly 12.3%. In 2025, LOW stock is down 7.4%, compared to the SPX’s marginal rise on a YTD basis. 

Narrowing the focus, LOW’s underperformance is also apparent compared to the Consumer Discretionary Select Sector SPDR Fund (XLY) . The exchange-traded fund has gained about 21% over the past year. Moreover, the ETF’s 3.7% dip on a YTD basis outshine the stock’s losses over the same time frame.

Lowe's has been underperforming due to slowing sales growth, increased competition from online retailers, higher operational costs, and a shift towards defensive investments in the market.

On Feb. 26, LOW shares closed up by 1.9% after reporting its Q4 results. Its adjusted EPS of $1.93 exceeded Wall Street expectations of $1.83. The company’s revenue was $18.6 billion, beating Wall Street forecasts of $18.4 billion. LOW expects full-year adjusted EPS in the range of $12.15 to $12.40, and expects revenue in the range of $83.5 billion to $84.5 billion.

For fiscal 2025, ending in January 2026, analysts expect LOW’s EPS to grow 1.8% to $12.22 on a diluted basis. The company’s earnings surprise history is impressive. It beat the consensus estimate in each of the last four quarters.

Among the 31 analysts covering LOW stock, the consensus is a “Moderate Buy.” That’s based on 21 “Strong Buy” ratings, one “Moderate Buy,” eight “Holds,” and one “Strong Sell.”

This configuration is more bullish than a month ago, with 20 analysts suggesting a “Strong Buy.” 

On May 8, Wells Fargo & Company (WFC) analyst Zachary Fadem maintained a “Buy” rating on LOW and set a price target of $260, implying a potential upside of 13.8% from current levels.

The mean price target of $272.12 represents a 19.1% premium to LOW’s current price levels. The Street-high price target of $305 suggests a notable upside potential of 33.5%.