On the downside, Bela Lakos has downgraded Lowe’s (LOW) amid persistent consumer confidence and housing market headwinds. JR Research has also lowered rating on Adobe (ADBE), warning that generative AI competitors like Figma and Canva are eroding the software giant’s competitive moat.

Upgrades

• SoFi Technologies (SOFI): Upgrade to Buy by Bay Area Ideas. The analyst points to a disconnect between the company’s strong fundamentals and its multiyear low valuation, noting accelerating growth metrics as catalysts for upside.

“While revenue guidance could have been stronger, the outlook is overall solid. In my view, the valuation has also come down too much, and their CEO’s recent purchases of stock show that there’s opportunity. Therefore, I have decided to upgrade SoFi to a buy rating now.”

• Apple (AAPL): Upgrade to Long by Summit Research. The rise of AI agents is driving consumer demand for affordable PCs to isolate agentic workloads, positioning Apple’s hardware lineup for an opportunistic upside surprise without requiring costly AI capex investment.

“Emerging agentic momentum is expected to help Apple offset near-term operational concerns pertaining to iPhone supply availability, memory price implications, as well as its long-delayed AI Siri update. More importantly, the incremental tailwind has seemingly landed on Apple’s lap without any material spending uplift or direct participation in the AI capex arms race, aligning instead with its existing Mac refresh roadmap.”

Downgrades

• Lowe’s Companies (LOW): Downgrade Hold to Sell by Bela Lakos. Challenging macroeconomic conditions, specifically declining consumer confidence and housing market headwinds, make the current valuation difficult to justify despite the company’s reliable dividend.

“In my view, as long as the consumer is weak, the housing market is unstable, the mortgage rates are uncertain, and tariff uncertainty persists, the demand for LOW’s products is unlikely to increase substantially. For these reasons, I do not like the company fundamentally now, but what I do like is their continued focus on returning value to their shareholders through dividends.”

• Adobe (ADBE): Downgrade to Sell by JR Research. Despite trading at a deep discount, the analyst warns that Adobe risks becoming a value trap as nimble competitors use generative AI to weaken switching costs and erode market share.

“ I think it’s time for me to finally put on hold my bullish thesis on ADBE, allowing the company more time to work through its problems, but ultimately it’s going to be a show-me story from now on, as we assess the innumerable challenges facing the software ecosystem right now.”

The post SA analyst upgrades/downgrades: ADBE, AAPL, SOFI, LOW appeared first on Up2info.com.

In an interview with CNBC, CEO Marvin Ellison warned that the company is “still dealing with a housing market that does not have a lot of tailwind.”

“For us, the greatest fuel for the home improvement industry is when you decide to put your house on the market…because the first thing you do is you fix up your yard, you repair your fence, you paint your walls,” Ellison added.

Industry data shows that there remains a meaningful gap between home buyers and home sellers, with the former viewing homes as too expensive and mortgage rates still too high, while the latter cannot obtain contracts as quickly as in the past.

But despite the lingering mismatch, analysts are not ready to throw in the towel on Lowe’s (LOW) and remain bullish on the company’s future, citing strong comparable sales and the potential for a housing rebound to position the stock for outperformance.

“We like the LOW investment case as it provides upside optionality when the housing market rebounds, and downside appears limited given the industry is bottoming,” says Morgan Stanley’s Simeon Gutman, adding that similar to Home Depot’s (HD) results, the flat to +2% comparable sales guidance “reflects an industry that is bottoming.”

Notably, the professional segment remains robust and will continue to offset any struggles the DIY segment continues to experience, a dynamic that will support Lowe’s (LOW) bottom-line as the former continues to gain traction and narrows the gap with Home Depot, says BofA Securities’ Robert Ohmes.

“We like the setup in Lowe’s,” says Jefferies analyst Jonathan Matuszewski. “With support from tax refunds, improved turnover, and rising HELOC activity potentially driving more project starts, [we have increased] confidence in valuation multiple expansion ahead.”

“While DIY discretionary demand is still soft, downside is limited given the end of reversion, declining mortgage rates, and budding momentum in Pro,” Gutman adds, reiterating his Overweight on Lowe’s (LOW) with a $296 price target, reflecting 12% upside to Wednesday’s closing price.

BofA Securities and Jefferies are also bullish on Lowe’s (LOW) viewing the stock as a Buy with price targets set at a premium to the current price.

The post Housing headwinds haven’t shaken confidence in Lowe’s appeared first on Up2info.com.

In a CNBC interview on Wednesday following the release of Lowe’s Q4 earnings report, Ellison said his company was “still dealing with a housing market that does not have a lot of tailwind.”

“For us, the greatest fuel for the home improvement industry is when you decide to put your house on the market…because the first thing you do when you put it on the market is you fix up your yard, you repair your fence, you paint your walls, you do simple beautification modifications in your home,” Ellison added.

Here’s what other CEOs, analysts, and President Trump have said recently about the current state of the housing market.

Home Depot CFO Richard McPhail:

In an interview following the release of Home Depot’s (HD) Q4 report on Tuesday, McPhail said the housing market was still “frozen.”

“What we’ve seen as an added pressure during the last year has been this increase in consumer uncertainty, a gradual decline in consumer confidence,” McPhail added.

According to Bloomberg, McPhail also commented that “the homeowner is one of the healthiest customer cohorts out there, but they tell us that uncertainty is growing, that there’s concern around housing affordability, around job losses.”

Redfin:

In a report released Monday, Redfin said there were approximately 44% more home sellers than buyers in January, up 30% from the same period in 2025 and the second largest gap since records dating back to 2013.

“Homebuyers are backing off due to stubbornly high home prices and mortgage rates, layoffs, and mounting economic and political uncertainty. Winter storms also swept much of the U.S. in January, which may have dampened sales,” Redfin said.

“Sellers, many of whom are buyers themselves, are backing off in response to lackluster demand for their homes. Some sellers are delisting after watching their homes sit on the market for months with zero bites from buyers, while others are choosing not to list at all after seeing nearby homes sell for below the asking price,” Redfin added.

President Donald Trump:

In his State of the Union address on Tuesday night, Trump linked issues in the housing market to interest rates.

“Lower interest rates will solve the Biden-created housing problem, while at the same time protecting the values of those people who already own a house that really feel rich for the first time in their lives,” Trump said in his speech.

Seeking Alpha analyst Daniel Jones:

In a recent article on homebuilder stocks, Jones said he sees a near-term drop in home prices.

“I do expect home prices to drop and for home buying activity to likely pull back. And if that comes to pass, there could be some short-term pain. But because of the robust catalyst that exists here in the form of a growing population, several years of underbuilding, and declining interest rates that should make homes more affordable, I believe that those with the long-term outlook would be wise to consider this space,” Jones wrote.

Notable homebuilder stocks: KB Home (KBH), Pulte (PHM), D.R. Horton (DHI), NVR (NVR), Lennar (LEN), Toll Brothers (TOL), Meritage Homes (MTH)

Notable homebuilder ETFs: iShares Residential and Multisector Real Estate (REZ), State Street SPDR S&P Homebuilders (XHB), iShares US Home Construction (ITB)

The post What they’re saying about the state of the housing market appeared first on Up2info.com.

The post Earnings Snapshot: Lowe’s tops Q4 but guides FY2026 below consensus appeared first on Up2info.com.

The post Lowe’s Non-GAAP EPS of $1.98 beats by $0.04, revenue of $20.58B beats by $240M appeared first on Up2info.com.

Lowe’s (LOW) is scheduled to announce Q4 earnings results on Wednesday, February 25th, before market open.

Wall Street, on average, expects the home improvement retailer to post a quarterly EPS of $1.94 (+0.5% Y/Y) on revenue of $20.34B (+9.6% Y/Y).

In anticipation that professional demand will compensate for slowing sales in the do-it-yourself category, Lowe’s (LOW) raised its full year sales guidance to a level above Wall Street’s expectations, offsetting mixed third quarter results.

The company now sees FY25 sales at $86.0B versus earlier guidance of $84.5B to $85.5B.

Lowe’s was the top performing consumer discretionary stock in January 2026, with an impressive advance of 13.67%.

“LOW’s acquisition of Foundation Building Materials and expanded e-commerce capabilities could drive future growth, despite sector seasonality and macro headwinds from last year’s tariff wars,” pointed out a recent Seeking Alpha analysis.

Over the last 2 years, LOW has beaten EPS estimates 100% of the time and has beaten revenue estimates 63% of the time.

Over the last 3 months, EPS estimates have seen 2 upward revisions and 9 downward. Revenue estimates have seen 7 upward revisions and 2 downward.

Seeking Alpha’s Quant recommended the stock as a Hold while the Wall Street analysts see the company as a Buy.

Since the start of the year, LOW shares have risen 16%. The stock was up 2% on Tuesday, ahead of results.

The post Lowe’s Q4 2026 Earnings Preview: Street sees modest EPS growth appeared first on Up2info.com.

The list is topped by Lowe’s Companies (LOW), with an impressive one-month performance of 13.67%. Starbucks Corporation (SBUX) follows closely behind with a 13.22% gain, while TopBuild Corp. (BLD) secured the third position with an 11.35% increase.

Rounding out the top five are eBay (EBAY) at 10.81% and Genuine Parts (GPC) at 10.55%. Notably, all stocks on this list currently carry a Quant Rating of Hold, indicating a neutral outlook from the quantitative rating system.

Here is the list:

1. Lowe’s Companies (LOW), 1 month performance percentage: 13.67%

2. Starbucks (SBUX), 1 month performance percentage: 13.22%

3. TopBuild (BLD), 1 month performance percentage: 11.35%

4. eBay (EBAY), 1 month performance percentage: 10.81%

5. Genuine Parts (GPC), 1 month performance percentage: 10.55%

6. The Home Depot (HD), 1 month performance percentage: 10.51%

7. AutoZone (AZO), 1 month performance percentage: 9.78%

8. Texas Roadhouse (TXRH), 1 month performance percentage: 9.01%

9. Ulta Beauty (ULTA), 1 month performance percentage: 8.86%

10. O’Reilly Automotive (ORLY), 1 month performance percentage: 8.66%

Consumer Discretionary ETFs: (XLY), (VCR), (FXD), (FDIS), (RSPD), and (RXI)

The post Top performing consumer discretionary stocks in the past month appeared first on Up2info.com.

Lowe’s Companies (LOW) shares clocked seven straight sessions of gains, as the stock was up 0.3% at $275.06 on Wednesday.

The home improvement retail company gained 11.3% in the preceding six sessions. The stock dropped over 2% so far this year, compared to a near 17% rise in the broader S&P 500 Index.

Looking at Seeking Alpha’s Quant Rating, LOW has a Hold rating with a score of 3.1 out of 5. The company received A+ in the prospect of profitability, while it received a D in growth.

Turning to the Wall Street community, 22 analysts gave LOW a Buy and above rating. 12 analysts have given the stock a Hold recommendation, while one recommended Sell.

Seeking Alpha analysts are also cautious and see the stock as a Hold.

“LOW trades at a premium to sector and historical multiples, which appears unjustified given flat sales and margin compression”, pointed out a Seeking Alpha analysis.

The post Lowe’s Companies shares rose for seven consecutive sessions appeared first on Up2info.com.

Management View

• Marvin Ellison, President, CEO & Chairman, reported “third quarter sales were $20.8 billion with comparable sales increasing 0.4% year-over-year, despite a roughly 100 basis point headwind related to Hurricanes Helene and Milton.” He highlighted adjusted operating margin expansion and an adjusted diluted earnings per share of $3.06, up 6% versus last year. Ellison emphasized continued progress with the Total Home Strategy, notably with “growth this quarter” in the small to medium Pro segment, online sales growth of 11.4%, and double-digit comps in home services.
• The CEO detailed the strategic importance of generative AI, noting virtual assistants answer nearly 1 million customer questions per month, and stated that “when our customers engage with Mylow online, the conversion rate more than doubles.” AI adoption earned Lowe’s the OpenAI 100 billion token milestone award.
• Ellison announced the completed acquisition of Foundation Building Materials (FBM) in October, describing it as giving Lowe’s “a more comprehensive product portfolio, expands our revenue streams and further enhances our offering to our Pro customers.” He stated that FBM’s 370 locations will strengthen fulfillment, especially in high-density urban markets, and efforts are underway to quickly connect FBM’s product catalog to Lowe’s Pro extended aisle.
• William Boltz, Executive Vice President of Merchandising, noted “positive comps in 10 of our 14 merchandise divisions” and highlighted performance in appliances, flooring, paint, kitchens and bath, and building products. Boltz announced the launch of Sherwin-Williams ProBlock Quick Dry primers, exclusive to Lowe’s and Sherwin-Williams, and described the rollout of the rural format to nearly 500 stores and the introduction of the Heart & Herd private pet brand.
• Joseph McFarland, Executive Vice President of Stores, stated that new training programs and AI-powered tools are “boosting their knowledge, confidence and effectiveness at driving sales.” He also reported double-digit growth in Home Services and ongoing improvements in inventory shrink.
• Brandon Sink, Executive VP & CFO, said, “we generated GAAP diluted earnings per share of $2.88.” Sink reported $105 million in pretax transaction costs for the FBM acquisition and $24 million in non-GAAP adjustments for ADG. He highlighted a comparable average ticket increase of 3.4% and a comparable transaction decline of 3%. Sink concluded, “excluding these impacts, we delivered adjusted diluted earnings per share of $3.06, exceeding our expectations.”

Outlook

• The company updated its outlook to expect “comp sales to be roughly flat for the year, which is at the bottom end of our previous guidance.” Including FBM, Lowe’s expects full-year sales of approximately $86 billion and an adjusted operating margin of approximately 12.1%, including 20 basis points of dilution from FBM and ADG. Adjusted diluted earnings per share are expected to be approximately $12.25. Capital expenditures are projected at up to $2.5 billion for the year.
• FBM and ADG are expected to negatively impact the consolidated adjusted operating margin by approximately 50 basis points on an annualized basis.

Financial Results

• Third quarter sales were $20.8 billion, with comparable sales up 0.4%. Gross margin was 34.2% in the quarter, up 50 basis points. Adjusted SG&A was 19.6% of sales, and adjusted operating margin rate was 12.4%, up 10 basis points versus prior year. Inventory ended Q3 at $17.2 billion, down approximately $400 million versus prior year, including $600 million from recent acquisitions. Operating cash flow for Q3 was $687 million; capital expenditures were $597 million; dividends paid were $673 million. Return on invested capital was 26.1%.
• The company financed the FBM transaction using $5 billion of bonds, a $2 billion term loan, and $1.8 billion in cash.

Q&A

• Christopher Horvers, JPMorgan: Asked about business trends and guidance for Q4 and 2026. Marvin Ellison responded that “we’re very pleased with the positive comp performance to start the quarter in spite of storm overlaps from last year” and sees “acceleration on 1-year comps when you exclude storm-related activity.” William Boltz highlighted broad-based early strength in Q4, especially in seasonal categories and appliances.
• Horvers asked about kitchen and bath trends. Ellison said, “this is more about lowest taking share in this space,” citing technology improvements and central selling. Boltz noted “broad-based strength, toilets, bathing, faucets, disposable kitchen sinks, bath repair.”
• Zachary Fadem, Wells Fargo: Asked about improving Pro sentiment. Ellison reported “roughly 75% of our Pro’s are very confident in their job prospects.” McFarland discussed the “flywheel effect” from Pro loyalty programs and digital investments. Sink addressed FBM and ADG margin impact.
• Simeon Gutman, Morgan Stanley: Inquired about macro scenario and housing affordability. Ellison emphasized the “lock-in effect” and strong homeowner equity, noting “we think HELOCs are going to become the next opportunity for us to drive discretionary remodel big-ticket projects.” Sink added that “HELOC rates go from neighborhood of 10% to 12% down to 8% to 10%.”
• Katharine McShane, Goldman Sachs: Asked about marketplace performance. Ellison stated, “it’s really early… exceeding expectations relative to financial performance, exceeding expectations, relative to the number of sellers and the quality of sellers.”
• Seth Sigman, Barclays: Asked about operating margin sustainability. Sink said “very focused at this point on delivering that the 12.1% operating margin that we communicated as part of our guide.”
• Gregory Melich, Evercore ISI: Inquired about traffic and ticket breakdown. Sink explained “strength in our Pro business, also appliances,” and “modest price increases.”

Sentiment Analysis

• Analysts’ tone was neutral to slightly positive, focusing on strategic execution and integration risks, while raising questions about margins, consumer trends, and the impact of acquisitions.
• Management presented a confident and optimistic sentiment in prepared remarks, with Ellison stating, “we remain confident that the continued execution of our Total Home Strategy will position Lowe’s to win in the short and in the long term.” During Q&A, management remained constructive but cautious on macro uncertainties, especially regarding housing and consumer demand.
• Compared to the previous quarter, management’s tone remains confident but with increased attention to integration and macro headwinds. Analysts in both quarters focused on margin sustainability and strategic direction, but Q3 featured more questions about acquisition impacts and marketplace scaling.

Quarter-over-Quarter Comparison

• Guidance shifted from a range to the “bottom end” for comp sales, now expected to be flat for the year, versus prior quarter’s flat to up 1% range.
• The previous quarter emphasized the upcoming FBM acquisition; this quarter discussed the completed integration and its financial impacts.
• FBM and ADG margin dilution was quantified more explicitly this quarter, with an annualized 50 basis points impact articulated.
• Management’s confidence in AI, Pro strategy, and marketplace expansion has grown, with new performance data shared.
• Analysts continued to focus on Pro trends, macro risks, and integration, but questions shifted toward operational execution and platform scalability.

Risks and Concerns

• Macroeconomic uncertainty, consumer confidence, and high borrowing costs were cited as ongoing challenges.
• Integration of FBM and ADG poses operational and margin risks; management is “already working collaboratively… on cross-selling opportunities” and “cost synergies.”
• Tariff impacts are expected to continue ramping into Q4 and the first half of next year.
• Management highlighted cautious consumer behavior and the potential delay in housing recovery.

Final Takeaway

Lowe’s management highlighted progress in its Total Home Strategy, growth in Pro and online segments, and the strategic integration of FBM and ADG, which are expected to expand product offerings and enhance fulfillment capabilities. The company updated its sales target to $86 billion for the year, with a flat comp sales outlook and projected adjusted diluted EPS of $12.25. While macroeconomic and integration risks remain, management expressed confidence in long-term growth, supported by AI adoption, operational discipline, and continued investment in customer experience and productivity initiatives.

Read the full Earnings Call Transcript

The post Lowe’s outlines $86B sales target for 2025 while advancing Pro strategy through FBM acquisition appeared first on Up2info.com.

The post Earnings Snapshot: Lowe’s Q3 profit tops estimates; full-year revenue outlook exceeds expectations appeared first on Up2info.com.