Is Lowe's Stock Underperforming the S&P 500?

Mooresville, North Carolina-based Lowe's Companies, Inc. (LOW) operates as a home improvement retailer. It offers a line of products for construction, maintenance, repair, remodeling, decorating, and home improvement. With a market cap of $133.5 billion, the company operates 120+ supply chain facilities and 1,750 home improvement and hardware stores spread across the U.S.

Companies worth $10 billion or more are generally described as "large-cap stocks." Lowe's fits this bill perfectly. Given the company's widespread store network, its valuation above this mark is not surprising. Lowe’s serves nearly 16 million customer transactions per week in the U.S. and employs over 300,000 people, and operates as the second largest home improvement retailer in the world.

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Lowe’s touched its 52-week high of $280.64 on Dec. 9, 2024, and is currently trading 13.9% below that peak. Meanwhile, LOW stock has dropped 6.5% over the past three months, lagging behind the S&P 500 Index’s ($SPX) 5.4% uptick during the same time frame.

Lowe’s has underperformed the broader market over the longer term as well. LOW stock has dipped 2.1% on a YTD basis and declined nearly 12% over the past 52 weeks, compared to SPX’s 15.8% surge in 2025 and 13.1% gains over the past year.

LOW dropped below its 50-day moving average in late September and below its 200-day moving average in late October, underscoring its bearish movement.

Lowe's stock prices observed a marginal uptick in the trading session following the release of its mixed Q3 results on Aug. 20. Driven by solid performance in both Pro and DIY, the company observed notable improvement in comparable sales. Its net sales for the quarter grew 1.6% year-over-year to approximately $24 billion, missing the Street’s expectations by a whisker. Meanwhile, its adjusted EPS increased 5.6% year-over-year to $4.33, beating the consensus estimates by 2.4%.

On a slightly positive note, Lowe’s has outperformed its peer Home Depot, Inc.’s (HD) 8.6% decline on a YTD basis and a 17.2% plunge over the past 52 weeks.

Among the 28 analysts covering the LOW stock, the consensus rating is a “Moderate Buy.” As of writing, its mean price target of $272.50 suggests a 12.8% upside potential from current price levels.

On the date of publication, Aditya Sarawgi did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.

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