Is Lowe's Cheap Because Nobody Noticed Its Growth?

Walmart, Home Depot, and Lowe's, among other retailers, passed higher costs from tariffs to consumers. Walmart plans to use its $2.9 billion refund to invest in pricing strategies, not direct refunds. Other retailers will use refunds to offset costs and maintain pricing. No government refunds are expected.

RH, Floor & Decor, Lowe's, Home Depot, and Williams-Sonoma reported Q2 earnings. RH revenue grew 2.6% YoY, beating estimates. Floor & Decor revenue rose 3% YoY, outperforming expectations. Lowe's revenue increased 8.3% YoY but missed EPS and revenue guidance. Home Depot revenue grew 5.7% YoY, beating estimates. Williams-Sonoma revenue rose 6.7% YoY, surpassing expectations. Shares of these companies have declined since earnings reports.

Lowe's (LOW) hit a 52-week low of $199, down 25% over the past year. Q2 sales grew 8% to $26B, but management cut full-year guidance, citing macroeconomic pressures. Analysts average a $253 price target. The stock's P/E ratios are 16 (forward) and 17 (trailing), with a 2.45% dividend yield.

Lowe's stock (NYSE: LOW) hit a 52-week low of $199, down 25% over the past year. Q2 sales grew 8% to $26B, but guidance was cut due to macroeconomic factors like low housing turnover, inflation, and tariffs. Analysts rate it a moderate buy with an average price target of $253. The dividend yield is 2.45%, and the stock has a P/E ratio of 16-17.

Walmart (WMT) expects $2.9B in tariff refunds, using them to lower prices, while Home Depot (HD) received $730M, applying $685M to reduce costs. Lowe's (LOW) plans to use its refund for shareholder returns. Walmart's CFO noted a 1.6% gross profit boost, and Home Depot's CFO reported a 0.3% margin increase.

Mortgage rates hit a 1-year high at 6.71%, driven by Treasury bond sell-offs and rising yields. Lowe's (LOW) cut its 2026 sales and margin forecasts, citing macro pressures. Home Depot (HD) reaffirmed its outlook but noted housing market pressures. Both companies' stocks could benefit from lower interest rates.