
NYSE:LOW
This summary was created by AI, based on 2 opinions in the last 12 months.
Lowes Companies Inc. (symbol: LOW-N) is set to report its earnings on Wednesday, and there are high expectations for the company's performance, especially given the current market conditions. With a noted downturn in new home sales, the do-it-yourself (DIY) home renovations market could serve as a fruitful segment for LOW, which specializes in this area. Analysts have pointed out that LOW's performance has outshined that of its primary competitor, Home Depot. Specifically, LOW has successfully attracted both professional contractors and the DIY consumer market, creating a balanced customer base that appears to be more effective than Home Depot's professional-heavy focus. The upcoming earnings report will be closely watched, and shares may reflect optimism given their adaptation to current trends in home improvement and renovations.
LOW vs. HD Checked back recently with profit taking. He's not worried. Prefers HD, with its long runway for the foreseeable future, longer reach, good treatment of employees, good growth opportunities in Mexico and other places. Fix-it market is reeling a bit because of commodity prices. HD is better managed.
Lowes vs. Home Depot in the reopening There's still room to run for both. Contractors have a ton of work and a shortage of supplies. Both have risen over 20% in the past 6 months. Home Depot trades at a slightly higher valuation, but is worth it and she prefers HD.
Has owned Home Depot for 18, which has outperformed Lowes until 18 months ago (i.e. lagged HD in gross margins). So, he sold HD and bought Lowes three months ago. So far, it's a good start. You want to buy the best company in a sector. Before, it was HD, and now it's Lowes.
They report Wednesday. Under the new CEO, he expects Lowes to take market share from Home Depot.
LOW vs. HD Staying at home has benefited both. Post-pandemic, they can benefit even further from pent-up demand for larger, professional contracts. LOW has outperformed HD since last March, trading at 20x earnings vs. 24x for HD. LOW has a stronger growth rate, 14% vs. HD at 9%. Both names are great, but LOW gets the edge.
Owned Home Depot before. Lowes has become a better competitor to Home Depot, and is now trading 4 multiple points below, but with similar fundamental points. They have increased their operating margin to about 13%. A Home Depot exec is also now part of Lowes. (Analysts’ price target is $194.52)
He believes in the CEO as he turns around the company. It's been difficult, but is moving in the right direction. Once he executes his vision, Lowe's will rival Home Depot in profits and growth.
Likes the home improvement space. All the vacation money has gone into the home. He prefers Home Depot. Their numbers looks better than Lowes'. He owns neither. Post-covid, he thinks the trend will continue.