Latest news with #LOW
Yahoo
2 days ago
- Business
- Yahoo
Lowe's Companies, Inc. (LOW): A Bull Case Theory
We came across a bullish thesis on Lowe's Companies, Inc. (LOW) on Rijnberk InvestInsights' Substack. In this article, we will summarize the bulls' thesis on LOW. Lowe's Companies, Inc. (LOW)'s share was trading at $225.73 as of 30th May. LOW's trailing and forward P/E were 18.67 and 18.42 respectively according to Yahoo Finance. Home improvement tools Last week, Lowe's Companies reported fiscal Q1 earnings that failed to excite Wall Street, causing shares to drop about 2% the following day and roughly 1% over the week. While Lowe's reaffirmed its FY25 guidance alongside its larger rival Home Depot, the results underscored ongoing consumer spending weakness, raising concerns about a possible economic slowdown or shallow recession that could extend into 2026. Given Lowe's heavy reliance on discretionary consumer spending, this cautious outlook weighed on investor sentiment, leaving shares nearly flat over the past year despite some earlier gains following Home Depot's solid report. However, beneath the short-term headwinds, Lowe's continues to make meaningful progress in strengthening its business for long-term growth. The company's aggressive push into the professional 'Pro' market, traditionally dominated by Home Depot, has yielded market share gains in a valuable segment, while investments in its technology and online platforms have driven sales growth. These strategic moves position Lowe's to outperform the broader market over time under its current management. The home improvement sector, though cyclical and sensitive to economic shifts, benefits from secular trends such as increasing homeowner investments in renovations, driven by rising home values, personalization desires, and lifestyle changes like remote work. With over half of U.S. homes built before 1980, demand for upgrades and repairs remains strong, supporting an industry growth rate expected to reach 5.2% CAGR through 2032. Despite near-term uncertainties and the need for valuation discipline, Lowe's robust market position and moat underpin a bullish long-term outlook, making it an attractive investment when priced appropriately. Lowe's Companies, Inc. (LOW) is not on our list of the 30 Most Popular Stocks Among Hedge Funds. As per our database, 68 hedge fund portfolios held LOW at the end of the first quarter which was 70 in the previous quarter. While we acknowledge the risk and potential of LOW as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an extremely cheap AI stock that is also a major beneficiary of Trump tariffs and onshoring, see our free report on the best short-term AI stock. READ NEXT: 8 Best Wide Moat Stocks to Buy Now and 30 Most Important AI Stocks According to BlackRock. Disclosure: None. This article was originally published at Insider Monkey.
Yahoo
28-05-2025
- Business
- Yahoo
Lowe's Companies, Inc. (LOW) 'Had A Good Quarter,' Says Jim Cramer
We recently published a list of . In this article, we are going to take a look at where Lowe's Companies, Inc. (NYSE:LOW) stands against other stocks that Jim Cramer discusses. Lowe's Companies, Inc. (NYSE:LOW), along with Home Depot, is a dominant player in the American home improvement retail market. The firm's shares have lost 10% year-to-date as it struggles in a weak market driven by high interest rates and pessimistic consumer sentiment. During its first-quarter earnings report in May, Lowe's Companies, Inc. (NYSE:LOW)'s continued to struggle in the weak environment. It warned that consumers were not making expensive purchases and this trend could continue in the second quarter. Cramer commented on the broader weakness in the retail sector: 'By the way the retail group is total chaos today. . .Lowe's is down. I thought Lowe's had a good quarter.' A family excitedly browsing through the aisles of a home improvement retail store. Cramer has discussed Lowe's Companies, Inc. (NYSE:LOW) several times this year. Most of these have seen him analyze the firm simultaneously with its peer Home Depot. For instance, here's what he said in March: 'Marvin Ellison, go[ing] back and forth with him, this was an excellent quarter. Particularly considering rates, although the rates have come down a little bit. And the lack of housing turnover which is typically been the key metric because when there's housing turnover you go to Lowe's, you tend to rehabilitate, you make it so you renovate. I was struck by the fact that the numbers were [inaudible] are improving. Because Lowe's is of the [inaudible] of do it yourself. We had good pro numbers from Home Depot, good pro numbers from Lowe's, something could be on here David. It is not as bad as feared. These two companies are excellent. Overall, LOW ranks 6th on our list of stocks that Jim Cramer discusses. While we acknowledge the potential of LOW, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than LOW and that has 100x upside potential, check out our report about this cheapest AI stock. READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires. Disclosure: None. This article is originally published at Insider Monkey. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
20-05-2025
- Business
- Yahoo
Lowe's Q1 Earnings Preview: Can LOW Beat the Odds in a Tough Market?
As Lowe's Companies, Inc. LOW prepares to unveil its first-quarter fiscal 2025 earnings on May 21, before the opening bell, investors are eager to see if the company can beat market expectations. The Zacks Consensus Estimate for the to-be-reported quarter's revenues is pegged at $20.95 billion, which suggests a drop of 2% from the prior year's levels. The consensus mark for quarterly earnings has been stable over the past 30 days at $2.89 per share, which indicates a decline of 5.6% from the year-ago quarter's reported has a trailing four-quarter earnings surprise of 3.9%, on average. In the last reported quarter, this Mooresville, NC-based company's bottom line outperformed the Zacks Consensus Estimate by a margin of 5.5%. (Find the latest EPS estimates and surprises on Zacks Earnings Calendar.) A primary area of concern for Lowe's remains the Do-It-Yourself (DIY) home improvement segment. Discretionary spending in this category continues to be soft, particularly for big-ticket interior projects, as consumers navigate an uncertain economic backdrop. Elevated interest rates and lingering inflation have pressured household budgets, prompting a more cautious approach to non-essential home upgrades. We expect a year-over-year decrease in comparable sales of 2% in the first challenge for Lowe's is the overall housing market environment, which remains subdued. High mortgage rates and affordability issues have dampened home sales and turnover activity, suppressing demand for renovation and maintenance services. This is particularly noticeable among new homeowners, who traditionally drive significant demand for upgrades and repairs shortly after purchasing a these headwinds, Lowe's has been proactive in responding to evolving consumer behaviors and market dynamics. The Pro segment remains a significant growth driver for Lowe's as the company continues to execute its multi-year strategy to improve product offerings, fulfillment options and the overall shopping experience for professional customers. Furthermore, strategic investments in the Total Home strategy, including modernizing the supply chain and IT infrastructure and enhancing merchandising assortments, position the company to navigate the continued focus on omnichannel improvements, productivity enhancements and the expansion of same-day delivery through third-party partners is also helping improve cost control while broadening its customer reach. The relaunch of the MyLowe's Pro Rewards program, which targets small to medium-sized professionals, further strengthens customer loyalty and encourages repeat business. Moreover, leveraging advanced technologies like AI-driven demand planning and augmented reality tools is enabling Lowe's to better align its inventory and services with customer needs. Lowe's Companies, Inc. price-consensus-eps-surprise-chart | Lowe's Companies, Inc. Quote As investors prepare for Lowe's first-quarter announcement, the question looms regarding earnings beat or miss. Our proven model does not conclusively predict an earnings beat for Lowe's this time. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. However, that's not the case here. You can see the complete list of today's Zacks #1 Rank stocks has a Zacks Rank #3 but an Earnings ESP of -0.43%. You can uncover the best stocks to buy or sell before they're reported with our Earnings ESP Filter. Here are three more companies you may want to consider, as our model shows that these have the right combination of elements to post an earnings beat this season:Dollar General Corporation DG currently has an Earnings ESP of +3.67% and a Zacks Rank #3. The Zacks Consensus Estimate for first-quarter fiscal 2025 earnings per share is pegged at $1.48, implying a 10.3% year-over-year decline. Dollar General's top line is expected to rise year over year. The Zacks Consensus Estimate for quarterly revenues is pegged at $10.28 billion, which indicates an increase of 3.7% from the figure reported in the prior-year quarter. DG has a trailing four-quarter earnings surprise of 1.2%, on Below FIVE has an Earnings ESP of +4.18% and currently carries a Zacks Rank of 3. FIVE's top line is anticipated to advance year over year when it reports first-quarter fiscal 2025 results. The Zacks Consensus Estimate for its quarterly revenues is pegged at $961.1 million, which suggests an 18.4% rise from the figure reported in the year-ago quarter. The company is expected to register an increase in the bottom line. The consensus estimate for Five Below's first-quarter earnings is pegged at 80 cents a share, up 33.3% from the year-ago quarter. FIVE has a trailing four-quarter earnings surprise of 40.6%, on Stores BURL has an Earnings ESP of +1.78% and currently carries a Zacks Rank of 3. BURL's top line is anticipated to advance year over year when it reports first-quarter fiscal 2025 results. The Zacks Consensus Estimate for its quarterly revenues is pegged at $2.52 billion, which suggests a 6.9% rise from the figure reported in the year-ago quarter. The company is expected to register a decline in the bottom line. The consensus estimate for Five Below's first-quarter earnings is pegged at $1.40 per share, down 1.4% from the year-ago quarter. BURL has a trailing four-quarter earnings surprise of 17.9%, on average. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Dollar General Corporation (DG) : Free Stock Analysis Report Lowe's Companies, Inc. (LOW) : Free Stock Analysis Report Five Below, Inc. (FIVE) : Free Stock Analysis Report Burlington Stores, Inc. (BURL) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research
Yahoo
16-05-2025
- Business
- Yahoo
2 Large-Cap Stocks on Our Watchlist and 1 to Think Twice About
Large-cap stocks are known for their staying power and ability to weather market storms better than smaller competitors. However, their sheer size makes it more challenging to maintain high growth rates as they've already captured significant portions of their markets. These trade-offs can cause headaches for even the most seasoned professionals, which is why we started StockStory - to help you find high-quality companies that can grow their earnings no matter what. That said, here are two large-cap stocks with attractive long-term potential and one whose momentum may slow. Market Cap: $130.1 billion Founded in North Carolina as Lowe's North Wilkesboro Hardware, the company is a home improvement retailer that sells everything from paint to tools to building materials. Why Is LOW Not Exciting? Store closures and poor same-store sales reveal weak demand and a push toward operational efficiency Poor same-store sales performance over the past two years indicates it's having trouble bringing new shoppers into its brick-and-mortar locations Demand is forecasted to shrink as its estimated sales for the next 12 months are flat Lowe's is trading at $232.50 per share, or 18.7x forward P/E. If you're considering LOW for your portfolio, see our FREE research report to learn more. Market Cap: $54.79 billion Best known for its wide assortment of user-generated content, Roblox (NYSE:RBLX) is an online gaming platform and game creation system. Why Are We Bullish on RBLX? Has the opportunity to boost monetization through new features and premium offerings as its daily active users have grown by 22.1% annually over the last two years Brand halo makes it a customer acquisition machine that onboards new users at scale without spending much money Disciplined cost controls and effective management resulted in a strong two-year EBITDA margin of 20.5% At $80.68 per share, Roblox trades at 47.7x forward EV/EBITDA. Is now the time to initiate a position? See for yourself in our in-depth research report, it's free. Market Cap: $149.9 billion With over 150 million patients impacted annually through its innovative healthcare technologies, Stryker (NYSE:SYK) develops and manufactures advanced medical devices and equipment across orthopedics, surgical tools, neurotechnology, and patient care solutions. Why Is SYK Interesting? Average organic revenue growth of 10.4% over the past two years demonstrates its ability to expand independently without relying on acquisitions Economies of scale give it some operating leverage when demand rises Has the option to reinvest or return capital to investors as its 14.6% free cash flow margin is well above its peers Stryker's stock price of $392.20 implies a valuation ratio of 28.4x forward P/E. Is now a good time to buy? Find out in our full research report, it's free. The market surged in 2024 and reached record highs after Donald Trump's presidential victory in November, but questions about new economic policies are adding much uncertainty for 2025. While the crowd speculates what might happen next, we're homing in on the companies that can succeed regardless of the political or macroeconomic environment. Put yourself in the driver's seat and build a durable portfolio by checking out our Top 9 Market-Beating Stocks. This is a curated list of our High Quality stocks that have generated a market-beating return of 176% over the last five years. Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,545% between March 2020 and March 2025) as well as under-the-radar businesses like the once-micro-cap company Kadant (+351% five-year return). Find your next big winner with StockStory today for free. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
06-05-2025
- Business
- Yahoo
2 S&P 500 Stocks with Promising Prospects and 1 to Approach with Caution
While the S&P 500 (^GSPC) includes industry leaders, not every stock in the index is a winner. Some companies are past their prime, weighed down by poor execution, weak financials, or structural headwinds. Picking the right S&P 500 stocks requires more than just buying big names, and that's where StockStory comes in. Keeping that in mind, here are two S&P 500 stocks leading the market forward and one that could be in trouble. Market Cap: $126 billion Founded in North Carolina as Lowe's North Wilkesboro Hardware, the company is a home improvement retailer that sells everything from paint to tools to building materials. Why Is LOW Not Exciting? Recent store closures and weak same-store sales point to soft demand and an operational restructuring Weak same-store sales trends over the past two years suggest there may be few opportunities in its core markets to open new locations Demand is forecasted to shrink as its estimated sales for the next 12 months are flat Lowe's is trading at $225.96 per share, or 18.1x forward P/E. If you're considering LOW for your portfolio, see our FREE research report to learn more. Market Cap: $32.65 billion Also known as Wabtec, Westinghouse Air Brake Technologies (NYSE:WAB) provides equipment, systems, and related software for the railway industry. Why Are We Fans of WAB? Average organic revenue growth of 9.5% over the past two years demonstrates its ability to expand independently without relying on acquisitions Operating margin expanded by 6.3 percentage points over the last five years as it scaled and became more efficient Share repurchases have amplified shareholder returns as its annual earnings per share growth of 25.5% exceeded its revenue gains over the last two years At $190.79 per share, Wabtec trades at 21.9x forward P/E. Is now the time to initiate a position? See for yourself in our full research report, it's free. Market Cap: $19.98 billion Based in Texas and founded over a century ago, Lennox (NYSE:LII) is a climate control solutions company offering heating, ventilation, air conditioning, and refrigeration (HVACR) goods. Why Does LII Catch Our Eye? Operating profits and efficiency rose over the last five years as it benefited from some fixed cost leverage Earnings per share have massively outperformed its peers over the last two years, increasing by 24.3% annually ROIC punches in at 50.4%, illustrating management's expertise in identifying profitable investments Lennox's stock price of $562.92 implies a valuation ratio of 23.7x forward P/E. Is now a good time to buy? Find out in our full research report, it's free. Donald Trump's victory in the 2024 U.S. Presidential Election sent major indices to all-time highs, but stocks have retraced as investors debate the health of the economy and the potential impact of tariffs. While this leaves much uncertainty around 2025, a few companies are poised for long-term gains regardless of the political or macroeconomic climate, like our Top 6 Stocks for this week. This is a curated list of our High Quality stocks that have generated a market-beating return of 175% over the last five years. Stocks that made our list in 2019 include now familiar names such as Nvidia (+2,183% between December 2019 and December 2024) as well as under-the-radar businesses like Axon (+711% five-year return). Find your next big winner with StockStory today for free. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
