Here's What Analysts Are Forecasting For Lowe's Companies, Inc. (NYSE:LOW) After Its Yearly Results

Investors in Lowe's Companies, Inc. (NYSE:LOW) had a good week, as its shares rose 4.0% to close at US$249 following the release of its yearly results. It was a credible result overall, with revenues of US$84b and statutory earnings per share of US$12.23 both in line with analyst estimates, showing that Lowe's Companies is executing in line with expectations. Earnings are an important time for investors, as they can track a company's performance, look at what the analysts are forecasting for next year, and see if there's been a change in sentiment towards the company. We thought readers would find it interesting to see the analysts latest (statutory) post-earnings forecasts for next year.

View our latest analysis for Lowe's Companies

Taking into account the latest results, Lowe's Companies' 31 analysts currently expect revenues in 2026 to be US$84.6b, approximately in line with the last 12 months. Statutory per share are forecast to be US$12.32, approximately in line with the last 12 months. Before this earnings report, the analysts had been forecasting revenues of US$84.7b and earnings per share (EPS) of US$12.58 in 2026. The analysts seem to have become a little more negative on the business after the latest results, given the small dip in their earnings per share numbers for next year.

It might be a surprise to learn that the consensus price target was broadly unchanged at US$279, with the analysts clearly implying that the forecast decline in earnings is not expected to have much of an impact on valuation. Fixating on a single price target can be unwise though, since the consensus target is effectively the average of analyst price targets. As a result, some investors like to look at the range of estimates to see if there are any diverging opinions on the company's valuation. There are some variant perceptions on Lowe's Companies, with the most bullish analyst valuing it at US$309 and the most bearish at US$217 per share. Analysts definitely have varying views on the business, but the spread of estimates is not wide enough in our view to suggest that extreme outcomes could await Lowe's Companies shareholders.

Of course, another way to look at these forecasts is to place them into context against the industry itself. We can infer from the latest estimates that forecasts expect a continuation of Lowe's Companies'historical trends, as the 1.1% annualised revenue growth to the end of 2026 is roughly in line with the 1.1% annual growth over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to see their revenues grow 5.1% per year. So although Lowe's Companies is expected to maintain its revenue growth rate, it's forecast to grow slower than the wider industry.

The Bottom Line

The most important thing to take away is that the analysts downgraded their earnings per share estimates, showing that there has been a clear decline in sentiment following these results. Fortunately, the analysts also reconfirmed their revenue estimates, suggesting that it's tracking in line with expectations. Although our data does suggest that Lowe's Companies' revenue is expected to perform worse than the wider industry. There was no real change to the consensus price target, suggesting that the intrinsic value of the business has not undergone any major changes with the latest estimates.

Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. We have estimates - from multiple Lowe's Companies analysts - going out to 2028, and you can see them free on our platform here.

However, before you get too enthused, we've discovered 2 warning signs for Lowe's Companies (1 doesn't sit too well with us!) that you should be aware of.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.