This article may contain references to products or services from one or more of our advertisers or partners. We may receive compensation when you click on links to those products or services. Nonetheless, our opinions are our own.
The information presented in this article is accurate to the best of our knowledge at the time of publication. However, information is subject to change, and no guarantees are made about the continued accuracy or completeness of this content after its publication date.
Introduction
As 2025 goes on, investors will have a hard time because of high inflation, changing interest rates, and market volatility that never seems to end. Companies with good reputations, strong fundamentals, and products that are useful to consumers tend to get a lot of attention during times like these. Lowe’s Companies, Inc. is one of these companies. It is a well-known name in the home improvement business. For almost eight decades, Lowe’s has been an important player in the American retail and housing markets. The company sells tools, appliances, and building materials, but it has also become a good indicator of how people feel about spending on housing, lifestyle, and renovations. Lowe’s is at the crossroads of cultural trends and investment opportunities because people are spending more time at home and putting home ownership and improvement first. We’ll look at Lowe’s current market position, financial fundamentals, dividend strength, risks, and future outlook to see if it is still a good investment in 2025.
A Look at the Company
Lowe’s started in North Carolina in 1946 and is now the second-largest home improvement store in the U.S., after Home Depot. The company has more than 1,700 stores in North America and serves both do-it-yourself (DIY) customers and professional contractors. Not only is home improvement a trend, it’s also a long-lasting behavior that is affected by changes in lifestyle, demographics, and the demand for housing. Lowe’s has met this need by providing both in-store experiences and a quickly growing digital ecosystem.
Financial Fundamentals
Revenue Growth
Lowe’s has always made a lot of money, thanks to its large market presence. It made $97 billion in sales in FY 2022. Forecasts for FY 2025 show that the economy will grow by 2% to 4% each year, which shows that it is stable in a volatile environment.
EPS growth shows that a company is good at managing costs and making money. Lowe’s EPS has been steadily rising over the past ten years, and analysts expect it to keep rising in 2025 as operational efficiencies and share buybacks increase the value of the company’s shares.
Dividend Performance
One thing that sets Lowe’s apart is how reliable its dividends are. The company is part of the Dividend Kings because it has raised its dividend for more than 50 years in a row. This consistency shows that the company is financially strong and puts shareholders first.
Financial Comparison
| Metric | Lowe’s (LOW) | Home Depot (HD) | Industry Average |
|---|---|---|---|
| Revenue (FY 2024 est.) | $100B+ | $150B+ | N/A |
| EPS Growth (YoY) | 4%-6% | 5%-7% | 2%-3% |
| Dividend Yield | ~1.9% | ~2.4% | 1.5% |
| Consecutive Dividend Increases | 50+ years | 35+ years | Varies |
Voted "Best Overall Budgeting App" by Forbes and WSJ
Monarch Money helps you budget, track spending, set goals, and plan your financial future—all in one app.
Get 50% OFF your first year with code MONARCHVIP
Market Position and Competition
Lowe’s main competitor is Home Depot, but it also competes with regional hardware chains, online stores, and big-box stores like Walmart and Amazon in some product categories.
Lowe’s Strengths:
- Strong brand recognition across the U.S.
- Balanced customer base of DIYers and professionals
- Expanding e-commerce and digital services (delivery, curbside pickup, virtual design consultations)
- Sustainability initiatives attracting younger, environmentally conscious consumers
Challenges:
- Smaller scale compared to Home Depot
- Margin pressures during economic slowdowns
- Need to maintain relevance with younger consumers
Consumer and Industry Trends
Stay-at-Home Economy
After the pandemic, people still see their homes as places to work, relax, and spend time with family. This means that there will always be a need for renovations, repairs, and upgrades.
Sustainability and ESG Focus
Lowe’s has put money into lines of eco-friendly products, using renewable energy, and programs to cut down on waste. Following environmental, social, and governance (ESG) values makes the brand more appealing.
Digital Expansion
Retail is changing because of e-commerce and omnichannel shopping. Lowe’s online sales have grown quickly, thanks to things like improvements to their mobile app and better supply chain logistics to compete with Home Depot and Amazon.
Risks and Considerations
| Risk Factor | Potential Impact |
|---|---|
| Economic Slowdown | Reduced consumer spending on discretionary home projects |
| Interest Rate Increases | Higher borrowing costs may slow housing market activity |
| Supply Chain Disruptions | Inventory shortages and cost inflation |
| Competitive Pressure | Market share risk if Home Depot or digital retailers innovate more aggressively |
Investors must weigh these risks against Lowe’s proven ability to adapt and maintain financial strength.
Conclusion
In 2025, Lowe’s stands out as a strong investment choice. It is well-positioned for long-term growth because it has stable revenue, reliable dividends, and the ability to change with consumer trends. There are still risks, like changes in the supply chain, uncertainty about interest rates, and competition, but the company’s history of getting things done gives me peace of mind. Lowe’s is still a good stock to think about for investors who want a stock that pays dividends and has the potential for moderate growth. It might not grow at an incredible rate, but it does provide stability in uncertain times, which is becoming more and more important for long-term portfolios.
Frequently Asked Questions
Why is Lowe’s considered a strong dividend stock?
It has raised dividends for more than 50 years in a row, making it one of the few Dividend Kings. This shows that the company is stable and gives shareholders a steady return.
How does Lowe’s compare to Home Depot in 2025?
Lowe’s is getting better at competing with Home Depot by growing its online presence, using targeted marketing, and interacting with customers in a professional way.
What economic factors could impact Lowe’s performance?
The most important things are changes in the housing market, interest rates, and how much people spend on things they don’t need. High demand for housing is good for Lowe’s, but high rates or recessions could slow growth.
Is Lowe’s focusing on sustainability?
Yes. Lowe’s has made its products more eco-friendly, cut down on carbon emissions, and put money into long-term supply chain practices. People who care about the environment and investors like these efforts.
What is the investment outlook for Lowe’s in 2025?
Analysts think that revenue will keep growing at a steady rate of 2% to 4%, EPS will keep going up, and dividends will keep going up. Lowe’s isn’t a high-growth stock, but it is a stable investment for people who want dividends and value.
Reviewed and edited by Albert Fang.
See a typo or want to suggest an edit/revision to the content? Use the contact us form to provide feedback.
At FangWallet, we value editorial integrity and open collaboration in curating quality content for readers to enjoy. Much appreciated for the assist.
Did you like our article and find it insightful? We encourage sharing the article link with family and friends to benefit as well - better yet, sharing on social media. Thank you for the support! 🍉
Article Title: Lowe’s Stock: Still a Good Buy for 2025 Investors
https://fangwallet.com/2025/09/09/lowes-stock-still-a-good-buy-for-2025-investors/The FangWallet Promise
FangWallet is an editorially independent resource - founded on breaking down challenging financial concepts for anyone to understand since 2014. While we adhere to editorial integrity, note that this post may contain references to products from our partners.
The FangWallet promise is always to have your best interest in mind and be transparent and honest about the financial picture.
Become an Insider
Subscribe to get a free daily budget planner printable to help get your money on track!
Make passive money the right way. No spam.
Editorial Disclaimer: The editorial content on this page is not provided by any of the companies mentioned. The opinions expressed here are the author's alone.
The content of this website is for informational purposes only and does not represent investment advice, or an offer or solicitation to buy or sell any security, investment, or product. Investors are encouraged to do their own due diligence, and, if necessary, consult professional advising before making any investment decisions. Investing involves a high degree of risk, and financial losses may occur including the potential loss of principal.
Source Citation References:
+ Inspo
LOWE Stock Updates (Yahoo Finances): https://finance.yahoo.com/news/time-consider-buying-lowes-companies-120014649.html
