Summary

• I called Lowe's Companies, Inc. a Buy in November 2025, but the stock, after returning 25%, has underperformed and missed the April rally.
• Lowe's just reported Q1 2026 and beat on revenue and EPS, but full-year guidance came in below expectations.
• In this article, I explain what tailwind I expect to appear for LOW stock and explain why my DCF shows Lowe's undervaluation across most scenarios.
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Introduction

After dealing with Home Depot (HD), it is now Lowe's Companies, Inc.'s (LOW) turn This is a stock I had been at first neutral on, upgrading it to a Buy

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Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, but may initiate a beneficial Long position through a purchase of the stock, or the purchase of call options or similar derivatives in LOW over the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

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