Why Lowe's (LOW) is a Top Value Stock for the Long-Term

For new and old investors, taking full advantage of the stock market and investing with confidence are common goals.

While you may have an investing style you rely on, finding great stocks is made easier with the Zacks Style Scores. These are complementary indicators that rate stocks based on value, growth, and/or momentum characteristics.

Why Investors Should Pay Attention to This Value Stock

Different than growth or momentum investors, value-focused investors are all about finding good stocks at good prices, and discovering which companies are trading under what their true value is before the broader market catches on. The Value Style Score utilizes ratios like P/E, PEG, Price/Sales, and Price/Cash Flow to help pick out the most attractive and discounted stocks.

Lowe's (LOW)

Lowe’s has evolved as one of the world’s leading home improvement retailer, offering services to homeowners, renters and commercial business customers. The company has been enhancing experience of its pro customers by upgrading pro-focused brands and revamping pro-service business website, LowesForPros.com. Incorporated in 1952 and based in Mooresville, NC, Lowe’s has its operations primarily in the U.S. The company offers services to homeowners, renters and commercial business customers. Homeowners and renters principally include do-it-yourself (DIY) customers and do-it-for-me (DIFM) customers who utilize the company’s installed sales programs. Commercial business customers consist of those who work in the construction, repair/remodel, commercial and residential property management and business maintenance professions.

LOW is a Zacks Rank #3 (Hold) stock, with a Value Style Score of B and VGM Score of A. Shares are currently trading at a forward P/E of 18.4X for the current fiscal year compared to the Retail - Home Furnishings industry's P/E 20.4X. Additionally, LOW has a PEG Ratio of 2.1 and a Price/Cash Flow ratio of 14.5X. Value investors should also note LOW's Price/Sales ratio of 1.5X.

Many value investors pay close attention to a company's earnings as well. For LOW, five analysts revised their earnings estimate upwards in the last 60 days, and the Zacks Consensus Estimate has increased $0.04 to $12.29 per share for 2026. LOW boasts an average earnings surprise of 3.2%.

With strong valuation and earnings metrics, a good Zacks Rank, and top-tier Value and VGM Style Scores, investors should strongly think about adding LOW to their portfolios.

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Lowe's Companies, Inc. (LOW) : Free Stock Analysis Report

This article originally published on Zacks Investment Research (zacks.com).

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