Lowe's Companies, Inc. (NYSE: LOW) is a major player in the home improvement retail sector, competing closely with Home Depot. As Lowe's prepares to release its quarterly earnings on May 21, 2025, analysts are keenly observing its financial performance.

The expected earnings per share (EPS) is $2.89, with projected revenue of approximately $21 billion. Despite the challenging market conditions, analysts remain optimistic about Lowe's potential. The Zacks Consensus Estimate suggests a revenue of $20.95 billion, indicating a slight 2% decrease from the previous year. The EPS estimate of $2.89 reflects a 5.6% decline from the same quarter last year.

However, Lowe's has a history of exceeding expectations, with an average earnings surprise of 3.9% over the last four quarters. Lowe's financial metrics provide further insights into its market position. The company has a price-to-earnings (P/E) ratio of 18.94, which helps investors understand how much they are paying for each dollar of earnings. Its price-to-sales ratio of 1.57 indicates how the market values its sales.

Additionally, the enterprise value to sales ratio is 2.02, and the enterprise value to operating cash flow ratio is 17.57, offering a comprehensive view of its valuation. The company's financial health is also reflected in its earnings yield of 5.28%, which shows the return on investment for shareholders. However,

Lowe's debt-to-equity ratio is notably negative at -2.79, suggesting a higher reliance on debt financing. Despite this, the current ratio of 1.09 indicates that Lowe's can cover its short-term liabilities with its short-term assets, maintaining liquidity. As Lowe's prepares to release its earnings, the focus will be on its performance in the Do-It-Yourself (DIY) segment, a key area for the company. Analysts have issued "buy" ratings for Lowe's, with 10 out of 15 analysts expressing confidence in its potential. The mean price target suggests a potential upside of approximately 15%, with a target price of $270.