1 Number That Makes Lowe's Stock an Obvious Buy Before Aug. 19

Lowe's stock is trading at its lowest forward P/E in more than two years.

Heading into its second-quarter earnings release on Aug. 19, Lowe's (NYSE: LOW) is trading at a discount.

Its current P/E ratio of 18.5 is below its historical average of 20.5, and its forward P/E of 17.4 is the lowest it's been since the end of 2023, when it was 15.7.

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This relatively low valuation alone makes the home improvement retail store stock worth considering heading into its earnings release.

Another reason to buy is its ridiculously good dividend. Lowe's increased its dividend in July to $1.25 per share at a solid yield of 2.28%. This marks 55 straight years of dividend increases for the Dividend King .

The low valuation for Lowe's could spark a surge in the share price if Lowe's reports good second-quarter earnings.

It has some solid momentum with five straight earnings beats. In Q2, analysts anticipate revenue of $26.2 billion, which would be up 13% billion from Q1. Adjusted earnings are estimated to be $4.24 per share in Q2, which would be down from $4.33 per share in Q2 2025, mainly due to costs associated with recent acquisitions.