"The optimism is rooted in Lowe's operational consistency. The company has beaten earnings estimates in all four of its most recent quarters, with the latest Q3 2025 report delivering $3.06 per share versus the $2.81 consensus, an 8.9% surprise. That marks eight consecutive quarterly earnings beats heading into 2026, with an average surprise of 4.1%. Revenue growth of 3.2% year-over-year also outpaces Home Depot's 2.8%."
"At today's price of $240.44, Lowe's trades at 19.92x trailing earnings. If shares hit $300, they would trade at roughly 24.9x earnings, assuming earnings remain flat. That's a premium to the current multiple, but not unreasonable given the company's growth trajectory. For context, Home Depot trades at 23.5x earnings despite posting slower revenue growth. Lowe's trades at a 15% discount to HD on a P/E basis and a 19% discount on forward earnings (18.21x vs 22.62x). Closing that valuation gap even partially makes $300 achievable."
Lowe's shares are roughly flat in 2025, down 0.62% year-to-date while Home Depot is down about 9%. Consensus Wall Street target sits at $273.53, implying roughly 13.7% upside from a $240.44 price, backed by 21 Buy/Strong Buy ratings among 35 analysts. Lowe's has beaten earnings estimates in recent quarters, reporting Q3 2025 EPS of $3.06 versus a $2.81 consensus and showing eight consecutive quarterly beats with average surprise of 4.1%. Revenue grew 3.2% year-over-year, outpacing Home Depot. Lowe's trades at about 19.92x trailing earnings, and reaching $300 would imply near 24.9x, driven by continued beats and valuation re-rating.
Read at 24/7 Wall St.
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