Lowe's Stock Plunges Amid Fears of Flat Home Improvement Market

Lowe's Companies (LOW) is set to report its Q2 earnings on August 19. The stock has been struggling, down about 13% in 2026 and roughly 24% below its 52-week high of $293.06.

CEO Marvin Ellison describes the company's target customer as a homeowner earning north of $100,000 with record home equity and money in the bank. However, this customer is financially fine but unwilling to commit, particularly when it comes to discretionary big-ticket items.

The company's mix leans more toward discretionary do-it-yourself projects, which makes it more vulnerable than its larger rival Home Depot. Ellison attributes the unlock for Lowe's as mortgage rates falling on the back of easing core inflation, none of which management controls.

Lowe's is building something the housing headline misses: pro penetration has climbed from roughly 18% when Ellison arrived in 2018 to nearly 40% today. The company is also adding revenue pools that did not exist two years ago while protecting margin.