Lowe's Companies Inc. (LOW) stock edged lower Friday after Stifel downgraded the home improvement retailer ahead of its quarterly earnings report next week.

Stifel Turns Bearish on Demand Concerns

Stifel analyst Andrew Carter downgraded Lowe's from Hold to Sell and lowered his price forecast from $195 to $190. The revised forecast implies about 16.5% downside from Thursday's closing price of $227.46.

Carter cited weaker demand, potential operating margin pressure and rising competition as key challenges for Home Depot, Inc. (HD) and Lowe's, CNBC reported. The analyst expects demand to weaken in the second half of 2026, followed by operating margin pressure in fiscal 2027 and 2028.

He also flagged persistent weakness in the do-it-yourself (DIY) segment, uncertainty in housing-related spending and growing competition. These challenges could force both retailers to increase investments to support long-term growth.

Carter's fiscal 2028 adjusted earnings per share estimates for Home Depot and Lowe's are 7% and 8% below consensus, respectively.

Earnings on Deck

Lowe's is scheduled to report quarterly earnings on Nov. 18. Analysts expect earnings of $2.88 per share, down from $3.06 a year earlier. Revenue is expected to rise to $22.42 billion from $20.81 billion.

Despite Stifel's downgrade, the stock carries a consensus Buy rating and an average analyst price forecast of $253.47. Bernstein recently raised its price forecast to $270, while JPMorgan increased its forecast to $275.

Technical Indicators Signal Mixed Momentum

Lowe's shares remain above their 20-day simple moving average (SMA) of $213.40 and 50-day SMA of $199.85. The stock is also trading above its 200-day SMA of $223.57, suggesting improving short-term momentum.

However, the 50-day SMA remains below the 200-day SMA, signaling lingering longer-term weakness. The MACD indicator remains above its signal line, pointing to improving buying momentum. Traders are watching resistance near $227.50 and support around $199.50.

LOW Price Action

Lowe's shares were down 0.22% at $226.97 at the time of publication Friday, according to market data.