Why Lowe's Companies Stock Just Popped

Core Insights - Lowe's Companies reported an earnings beat with $3.06 per share against an analyst forecast of $2.95, although sales were slightly lower than expected at $20.81 billion compared to the forecast of $20.84 billion [1][3] Financial Performance - The non-GAAP profit of $3.06 per share translates to a GAAP profit of $2.88 per share, reflecting a nearly 4% decline from the previous year [3] - Same-store sales (SSS) growth was 0.4%, which is double the growth rate of Home Depot, while total sales growth reached 3% [3][4] Market Context - Lowe's raised its full-year sales forecast to $86 billion but lowered its SSS forecast to predict flat sales against 2024 [5] - The company also adjusted its forecast for adjusted operating margin and indicated that earnings would be near the low end of previous guidance at approximately $12.25, adjusted for one-time items [5] Stock Valuation - Lowe's stock is trading at a price-to-earnings ratio of under 19x, which presents a modestly more optimistic outlook compared to Home Depot, although it is still considered a sell [6][7]