Based on Analyst Consensus Growth & Historical Valuation
0% (Stagnation)50% (Hyper Growth)
EST. PRICE IN 2031
$305.13
Based on 4.8% avg growth
INTRINSIC VALUE TODAY
$189.46
Trading above historical range
How this is calculated: We use a Growth Decay Model: starting with analyst consensus growth (adjusted above) and gradually slowing it down to a long-term terminal rate (4%) by Year 5. This provides a more realistic valuation than assuming constant hyper-growth. We then apply a 18.7x Exit PE.
Valuation Analysis: LOW is currently trading at $212.06, which is considered fair relative to its 30-day fair value range of $206.50 to $220.34. From a valuation perspective, the stock is trading at a discount (Forward PE: 16.1) compared to its historical average (18.7). Remarkably, the market is currently pricing in an annual earnings decline of 4.9% over the next few years. This aligns with recent fundamental challenges.
Technical Outlook: Technically, LOW is in a strong downtrend. Immediate support is located at $199.40, while resistance sits at $220.28.
Market Sentiment: The stock shows a mixed technical setup (45/100), with neutral trendline and momentum signals. Wall Street analysts see significant upside, with an average price target of $263.73 (+26.9%). Combining these factors, the current setup offers a favorable risk/reward ratio for buyers.
Quick Decision Summary
Current Position
FAIR
Historical Trading Range
$206.50 -
$220.34
Company Quality Score
57/100
(HOLD)
Volume Confirmation
HIGH
Confidence Score
72.4%
All Signals
NEUTRAL: Price in fair range
NEUTRAL: Mixed technical signals (45/100)
BULLISH: High volume confirmation
BULLISH: Trading 26.9% below Wall St target ($263.73)
Trading Range Analysis
30-Day Trading Range
$206.50 -
$220.34
Current vs Trading Range
FAIR
Support & Resistance Levels
Support Level$199.40
Resistance Level$220.29
Current TrendStrong Downtrend
Technical data as of
Aug 3, 2026
Fundamental Context
Forward P/E (Next Year Est.)16.06
Wall Street Target
$263.73
(+26.9%)
Revenue Growth (YoY)10.3%
Earnings Growth (YoY)-0.7%
Profit Margin7.5%
Valuation Discount vs History
-4.9% cheaper
PE vs Historical
16.1 vs 18.7
CHEAP
Market-Implied Price Targets
If current PE multiple persists
Implied Growth (YoY):-4.9%
(market-implied from PE analysis)
1-Year Target
$197.63
(-5%)
2-Year Target
$187.94
(-10%)
3-Year Target
$178.73
(-14%)
3-Yr Target (if PE normalizes)
(PE: 16โ19)
$208.10
(+0%)
3-Year Scenarios
Using analyst projected EPS growth
Bull:
(PE: 20.7, Growth: 5.5%)
$315.32
(+52%)
Base:
(SPY PE: 16.1, Growth: 5.5%)
$244.30
(+18%)
Bear:
(PE: 13.7, Growth: 5.5%)
$207.65
(0%)
๐Valuation based on Current Earnings
RECOVERY PLAY: Stock looks expensive now (18x PE), but valuation improves significantly next year (16x PE) as earnings recover.
Trailing PE: 18.25 | Current EPS (TTM): $11.51
Bull Case
$259.78
(+25%)
Analyst growth 12.4%, PE expands to 20.1
Base Case
$236.16
(+14%)
Market implied 12.4%, PE stable at 18.3
Bear Case
$142.85
(-31%)
Severe decline -20.0%, PE contracts to 15.5
These are projections based on PE multiples and EPS growth scenarios, not predictions. Actual results may vary significantly.
๐กUpside Surprise Potential
If earnings stabilize (0% growth), PE could expand from 16.1 to 18.7
Stabilization Target:
$241.96
(+16.4%)
PE Expansion Potential:
+16.4%
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Lowe's is the second-largest home improvement retailer globally, with around 1,750 stores in the US, after the 2023 divestiture of its Canadian locations (RONA, Lowe's Canada, Rรฉno-Dรฉpรดt, and Dick's Lumber). The firm's stores offer products and services for home decorating, maintenance, repair, and remodeling, with maintenance and repair accounting for two-thirds of products sold. Lowe's primarily targets retail do-it-yourself (around 70% of sales) and do-it-for-me customers, but has expanded its professional business clients to 30% from less than 20% in the past six years (set ot expand further with the acquisition of FBM). We estimate Lowe's captures a high-single-digit share of the domestic home improvement market, based on US Census data and management's market size estimates.