LOW Should I Buy
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Lowe's Companies Inc (LOW) is a good buy for a beginner investor with a long-term strategy and $50,000-$100,000 available for investment. The stock shows strong technical indicators, positive sentiment from hedge funds, and consistent analyst upgrades. Despite a slight decline in net income and EPS in the latest quarter, the company's revenue growth and gross margin improvement signal underlying strength. The upcoming earnings report on February 25, 2026, could act as a catalyst for further price movement.
The technical indicators for LOW are bullish. The MACD histogram is positive and expanding, RSI is neutral at 72.597, and moving averages are aligned bullishly (SMA_5 > SMA_20 > SMA_200). The stock is trading above the pivot level of 277.717, with resistance levels at 289.326 and 296.498. These factors suggest a strong upward trend.
Hedge funds have significantly increased their buying activity by 204.81% over the last quarter.
Analysts have consistently raised price targets, with JPMorgan setting a target of $325 and Barclays upgrading the stock to Overweight.
The broader market sentiment favors consumer discretionary stocks, which are expected to outperform the S&P
The Housing for the 21st Century Act could indirectly benefit Lowe's by boosting housing-related spending.
The latest financial quarter showed a decline in net income (-4.67% YoY) and EPS (-3.68% YoY), which could be a concern for some investors.
Insiders have shown neutral trading activity, with no significant buying or selling trends.
In Q3 2026, Lowe's reported a 3.19% YoY increase in revenue to $20.81 billion, indicating steady growth. However, net income dropped by 4.67% YoY to $1.61 billion, and EPS fell by 3.68% YoY to 2.88. Gross margin improved slightly to 31.91%, up 1.14% YoY, reflecting operational efficiency.
Analysts are broadly optimistic about Lowe's. JPMorgan raised its price target to $325, citing improving sales trends and a positive outlook for 2026. Barclays upgraded the stock to Overweight with a $285 price target, highlighting improvements in discretionary goods demand and the company's pro business unit. Truist and TD Cowen also raised their price targets, reflecting confidence in Lowe's performance in the retail and home improvement sectors.
