Lowe's Pro Momentum Adds Strength to Its Total Home Strategy

Lowe's Companies, Inc.LOW is strengthening its Pro business through differentiated assortments, reliable inventory, dedicated service and fulfillment. Small and medium-sized professionals drove another quarter of growth as discretionary Do-It-Yourself (DIY) spending remained pressured. Management said these customers continue responding to investments centered on saving time, ensuring product availability and delivering value.

Pro investments and repair and maintenance demand supported second-quarter fiscal 2026 merchandise performance. Rough plumbing, millwork, electrical and lumber posted positive comparable sales, with rough plumbing recording six consecutive quarters of growth. Nine of Lowe's 13 merchandise divisions delivered positive comps. Strength across Pro, online and Home Services helped companywide comparables rise 0.2%, marking a fifth consecutive positive quarter.

Survey feedback points to smaller projects among Lowe's core Pro customers. They reported steady backlogs but said cautious homeowners favored repairs and maintenance over larger remodeling jobs. Companywide comparable average ticket increased 2.3%, reflecting modest price inflation and continued Pro strength. Comparable transactions declined 2.1%, reflecting pressure in weather-sensitive outdoor and seasonal categories.

Lowe's digital tools help professionals plan, quote and manage their businesses within its platform, complemented by MyLowe's Pro Rewards. Integration efforts at Foundation Building Materials (FBM) and Artisan Design Group (ADG) are progressing. Management believes these acquisitions position Lowe's to serve larger Pros and capture more planned spending over the longer term.

Residential construction weakness nevertheless challenges both acquisitions, with ADG is fully exposed to this market, versus approximately 45% for FBM. Lowe's outlook assumes continued second-half pressure. Still, management remains pleased with FBM's commercial business, representing 55% of its operations, and continues pursuing integration benefits and tuck-in opportunities to strengthen the broader Pro platform.

LOW's Price Performance, Valuation & Estimates

Shares of Lowe's have inched up 16.5% over the past month compared with the industry's 15.4% growth.

Image Source: Zacks Investment Research

From a valuation standpoint, LOW trades at a forward price-to-sales ratio of 1.25, down from the industry's average of 1.30.

Image Source: Zacks Investment Research

The Zacks Consensus Estimate for Lowe's fiscal 2026 earnings implies a year-over-year decline of 0.3%, whereas the same for fiscal 2027 indicates an uptick of 6.1%. Earnings estimates for fiscal 2026 and 2027 have been revised downward by a penny and 3 cents, respectively, over the past seven days.