Lowe's Companies, Inc. (NYSE:LOW) is a prominent player in the home improvement retail sector, competing closely with Home Depot. Both companies are set to release their quarterly earnings this week, with Lowe's expected to report an earnings per share (EPS) of $4.24 and revenue of approximately $23.94 billion. These figures are closely watched by investors for signs of a market turnaround.
The home and garden market has faced challenges due to a sluggish housing market, tariffs, and high interest rates. These factors have led to consumer caution regarding significant purchases. As highlighted by PYMNTS, investors are keenly observing the earnings reports from Lowe's and Home Depot for indications of whether these headwinds are beginning to subside.
Both Lowe's and Home Depot have underperformed relative to the S&P 500 in 2025, as consumers have reduced spending on big-ticket items and expensive materials for home improvement. This trend follows a surge during the COVID-19 pandemic. Despite these challenges, analysts have not made significant changes to their EPS and sales estimates for Lowe's.
Lowe's financial metrics provide insight into its market valuation. The company has a price-to-earnings (P/E) ratio of approximately 20.50, a price-to-sales ratio of about 1.69, and an enterprise value to sales ratio of around 2.12. These figures reflect the market's valuation of Lowe's earnings, revenue, and total worth compared to its sales.
Lowe's has an earnings yield of about 4.88%, indicating the return on investment. The company also has a negative debt-to-equity ratio of approximately -2.94, suggesting a higher level of debt compared to its equity. Additionally, Lowe's current ratio is about 1.01, indicating its ability to cover short-term obligations. Investors are eager to see if the upcoming earnings report will signal a turnaround for Lowe's in the challenging market environment.
