Prediction: Lowe's Stock Could Reach $300+ Sooner Than You Expect

Lowe’s reported its fourth consecutive quarter of positive comparable sales, with Q1 FY27 revenue rising to $23.08 billion, up 10.3% year over year. Adjusted EPS was $3.03, slightly below the $3.06 consensus, while comparable sales increased 0.6% and online sales grew 15.5%. Revenue growth was supported by acquisitions in Foundation Building Materials and Artisan Design Group. Management reaffirmed FY2026 guidance of $92B to $94B in sales and adjusted EPS of $12.25 to $12.75. The stock trades around 19x earnings, viewed as an unjustified discount. The bull case targets $300.18, driven by Pro penetration, online momentum, training initiatives, and AI-assisted shopping, with housing turnover potentially improving if mortgage rates ease.

"Lowe's ( NYSE:LOW | LOW Price Prediction) just delivered its fourth consecutive quarter of positive comp sales, yet the stock sits 9.01% lower year-to-date and 13.02% off its April peak. That disconnect is the foundation of our call. Our 24/7 Wall St. price target for Lowe's is $265.24 over the next 12 months, implying 22% upside from the current $217.41. The recommendation is buy, with high confidence at 90%."

"Q1 FY27 results, reported May 20, 2026, showed revenue of $23.08 billion, up 10.3% YoY, lifted by the Foundation Building Materials and Artisan Design Group acquisitions. Adjusted EPS of $3.03 narrowly missed the $3.06 consensus, comparable sales rose 0.6%, and online grew 15.5%. CEO Marvin Ellison framed the quarter directly: "Strong spring execution and continued momentum in Pro, Appliances, Online, and Home Services supported a solid start to the year.""

"Management affirmed FY2026 guidance for $92B to $94B in sales and adjusted EPS of $12.25 to $12.75. Shares trade at roughly 19x earnings, a discount we view as unjustified given guidance integrity. The thesis: Pro penetration accelerates as the $8.8B Foundation Building Materials and $1.31B Artisan Design Group deals deliver synergies."

"Online momentum at +15.5%, the $250M tradesperson training program, and the Mylow AI advisor (5M associate questions) all expand the addressable wallet. If mortgage rates ease alongside expected Fed cuts, housing turnover unlocks the discretionary big-ticket purchases currently in hibernation. Analyst sentiment supports this scenario, with 22 buy ratings against just 1 sell, and insider activity tilts net buying across 27 recent transactions."

Read at 24/7 Wall St.