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Lowe's stock near multi-year lows as dividend and Pro pivot drive outlook
The retailer’s Q2 revenue was $26 billion, slightly below consensus, as persistent DIY weakness weighed on results.
Lowe’s shares are trading in the low $200s and near multi-year lows, placing the stock near the bottom end of its historic price to earnings range, according to MarketBeat Ratings.
The outlet points to a 2.3% dividend yield and a growing distribution, highlighting that Lowe’s has raised its payout for more than 50 consecutive years. It also argues that Lowe’s “Pro pivot” strategy and an acquisition push in 2025, including Foundation Building Materials and Artisan Design Group, are helping support growth and margins through cross-selling opportunities with contractors, remodelers, and builders.
MarketBeat Ratings also says Lowe’s capital allocation plan is shifting, with the company pausing aggressive buybacks to fund acquisitions and later to reduce debt. The outlet adds that debt reduction is expected to take several more quarters, while the shareholder deficit is reportedly falling.
On earnings momentum, MarketBeat Ratings notes Lowe’s had a tough Q2, with revenue of $26 billion that fell slightly short of consensus estimates. The miss was attributed to continued weakness in DIY projects, while revenue was still up 8.3% year over year.