Lowe's Valuation Gap Widens Ahead of Earnings Report
Lowe's Companies (LOW) is set to report its fiscal second-quarter earnings on August 19, with shares down around 10.5% year-to-date and trading at a significant valuation discount to Home Depot.
The company is expected to post revenue of $26.2 billion and adjusted earnings of $4.24 per share for the quarter ended August 1, according to sell-side consensus estimates compiled ahead of the release.
Lowe's has beaten earnings estimates for five consecutive quarters, which could provide momentum if results again come in ahead of expectations. The stock's current price-to-earnings ratio of 18.5 sits below its historical average of 20.5, while its forward multiple of around 17 is the lowest since late 2023.
By comparison, Home Depot trades at a forward earnings multiple near 23.5, leaving Lowe's at a discount of roughly 27% on that basis.