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Lowe's trades at a discount with strong FY26 outlook despite recent share slump

Market News
13 Aug 2026
Seeking Alpha
View Source
Bullish
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Lowe's Companies is seen as a quality operator currently trading below its peers despite recent share price underperformance. Management projects fiscal year 2026 revenue between $92 billion and $94 billion, with earnings per share of $6.72, supported by acquisitions and steady growth in its Pro segment. While transaction counts are declining, average purchase size and comparable sales are increasing. The company is actively returning capital to shareholders through buybacks and dividends, reducing leverage and maintaining an attractive valuation relative to the industry. These factors support a positive outlook despite broader economic challenges.

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