Lowe's Companies, Inc. (LOW), based in Mooresville, North Carolina, is a home improvement retailer providing products for construction, maintenance, repair, remodeling, decorating, and other home improvement needs. Boasting a market capitalization of $147.1 billion, Lowe's operates more than 1,700 stores across the United States.

Shares of the home improvement retail titan have underperformed the broader market over the past year. Over the past 52 weeks, Lowe’s stock has rallied 28.7%, lagging behind the S&P 500 Index’s ($SPX) 30.1% returns. In 2024, Lowe’s gained 18.2% compared to SPX’s 24.1% gains on a YTD basis.

Narrowing the focus, LOW has outperformed the Consumer Discretionary Select Sector SPDR Fund’s (XLY) 27.8% returns over the past 52 weeks but trails the ETF's 20% gains on a YTD basis.

On Nov. 19, LOW shares dipped 4.6% after posting third-quarter results. Its adjusted profit of 2.89 per share, exceeded Wall Street's expectations of $2.82 per share. The home improvement retailer posted revenue of $20.17 billion, surpassing the forecasted $19.96 billion. Lowe's expects full-year earnings to range between $11.80 and $11.90 per share, with revenue between $83 billion and $83.5 billion.

For the current fiscal year, ending in January 2025, analysts expect Lowe’s to report an EPS of $11.82, down 10.5% annually. However, the company’s earnings surprise history is robust. It beat the consensus estimates in all of the last four quarters.

Among the 31 analysts covering the LOW stock, the consensus rating is a “Moderate Buy.” That’s based on 19 “Strong Buy” ratings, one “Moderate Buy,” and 11 “Holds.”

This configuration is more bullish than a month ago, with 17 analysts suggesting a “Strong Buy” for the stock.

On Nov. 20, Truist Securities raised its price target for Lowe's to $310 from $307, and maintained a “Buy” rating. This adjustment followed the company's strong third-quarter performance, which matched Truist's revised forecasts, supported by solid sales in the professional contractor segment and a boost from storm recovery sales. Despite continued weakness in big-ticket items, Truist remains optimistic, citing a stable economy and the wealth of home equity as drivers for increased home improvement activity. 

LOW’s mean price target of $274.12 represents a premium of 4.2% from current price levels. The Street-high target of $323 indicates a potential upside of 22.8%.