Stifel Downgrades Lowe's Companies to Sell, Lowers Price Target to $190
Stifel analyst W. Andrew Carter downgrades Lowe's Companies (NYSE:LOW) from Hold to Sell and lowers the price target from $195 to $190.
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Stifel analyst W. Andrew Carter downgrades Lowe's Companies (NYSE:LOW) from Hold to Sell and lowers the price target from $195 to $190.
Lowe's stock declined 1.7% on November 12, 2026, underperforming the S&P 500's 0.35% loss. Despite a 22.99% year-to-date gain, the company faces headwinds with projected Q3 earnings expected to decline 6.54% year-over-year when reported on November 18, 2026. Lowe's holds a Zacks Rank #3 (Hold) rating with a Forward P/E of 18.89, trading in line with industry averages.
Home Depot shares rallied 19.5% in the past month, outperforming the market and industry peers. While Q2 sales grew 5.7% to $47.9B with strong Pro business and 11% digital growth, the stock's 22.3X forward P/E valuation is elevated relative to historical averages and competitors. Downward EPS revisions and persistent housing market weakness suggest investors should wait for a better entry point, though existing shareholders should remain invested.
Home equity borrowing jumped 14% to $481 billion, the fastest pace since the financial crisis. Jefferies sees Home Depot and Lowe's as winners.
Lowe's is poised to beat Q3 earnings expectations with a +0.59% Earnings ESP and Zacks Rank #3, despite an anticipated 6.5% EPS decline. The company is expected to benefit from Pro business momentum, digital expansion, and merchandising initiatives, but faces headwinds from weak DIY demand, housing market challenges, and elevated operating costs. The stock trades at a valuation discount to peers but has recently rallied significantly.
Lowe's (LOW) is highlighted as a strong candidate for beating its next earnings estimate, scheduled for November 18, 2026. The company has a track record of beating earnings estimates with an average surprise of 3.32% over the past two quarters. With a positive Earnings ESP of +0.59% combined with a Zacks Rank #3 (Hold), the stock has approximately a 70% probability of delivering another earnings beat.
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