Lowe's Companies, Inc. (LOW) is about to show its cards. The home improvement giant releases third quarter earnings Wednesday morning before the opening bell, and Wall Street has been fine-tuning its expectations right up to the wire.
Analysts are projecting earnings of $2.95 per share for the Mooresville, North Carolina-based retailer, a modest uptick from the $2.89 per share reported in the same period last year. Revenue estimates sit at $20.84 billion, compared to $20.17 billion a year ago. Nothing explosive, but steady growth in a challenging retail environment counts for something.
The company threw shareholders a bone on November 14, with its board declaring a quarterly cash dividend of $1.20 per share. Meanwhile, Lowe's stock dipped 2.4% on Tuesday, closing at $219.57 as investors awaited the earnings news.
So what are the smart money analysts saying? Let's look at how some of Wall Street's most accurate forecasters have positioned themselves heading into the report.
Telsey Advisory Group analyst Joseph Feldman kept his Outperform rating intact with a $305 price target on November 13. That's the most bullish call in this bunch, and it comes from an analyst with a 66% accuracy rate.
Evercore ISI Group analyst Greg Melich maintained an In-Line rating but trimmed his target from $245 to $240 on November 11. With a 76% accuracy rate, Melich is taking a more cautious stance on where the stock might head.
Wells Fargo analyst Zachary Fadem stayed Overweight but cut his price target from $290 to $280 on November 11. Fadem carries an impressive 77% accuracy rate, making his $10 haircut worth noting.
JP Morgan analyst Christopher Horvers also maintained an Overweight rating while reducing his target from $283 to $275 on November 10. His 74% accuracy rate puts him firmly in the "usually gets it right" category.
Finally, Truist Securities analyst Scot Ciccarelli kept his Buy rating but slashed his price target from $283 to $267 on November 7. With a 71% accuracy rate, Ciccarelli's reduction was the steepest among this group.
Notice a pattern? Every single analyst here maintains a positive rating on Lowe's, but most have been quietly walking back their price targets throughout November. That suggests cautious optimism—analysts still like the stock, but they're tempering expectations ahead of what could be a mixed earnings picture.
Wednesday morning will tell us whether that caution was warranted or overly pessimistic.