Core Viewpoint - Lowe's Companies, Inc. is currently trading at a forward 12-month P/E ratio of 20.12, which is below the industry average of 23.98 and the S&P 500's P/E of 22.67, but above its median P/E of 18.71 over the past year [1][4][21] Valuation and Stock Performance - The recent decline in Lowe's stock price, down 3% over the past month, contrasts with the industry's 1.7% gain, contributing to its discounted P/E [4][21] - Lowe's stock closed at $249.81, which is 13% below its 52-week high of $287.01 reached on October 15, 2024, and is trading below its 50-day moving average, indicating a potential slowdown in momentum [7][21] Strategic Initiatives - Lowe's has introduced its 2025 Total Home Strategy, focusing on Pro penetration, e-commerce acceleration, home services expansion, and customer loyalty programs to enhance market share [10] - The company has achieved a 30% market share in Pro penetration and plans to relaunch its Pro loyalty program as "MyLowe's Pro Rewards" in early 2025, offering a 5% discount for cardholders [11] - Lowe's has launched the first product marketplace in the U.S. home improvement industry, expanding its digital assortment and catering to various customer segments [12] - The integration of AI technology aims to improve online search, product recommendations, and demand planning, enhancing operational efficiency [13] - Lowe's plans to open 10-15 new stores annually in high-growth U.S. markets and extend its rural offering to 150 additional stores, totaling nearly 500 [14] Market Challenges - The company faces significant pressure in its DIY discretionary categories, particularly in larger projects, with comparable sales down 1.1% in Q3 of fiscal 2024 and expectations of a 3% to 3.5% decline for the current fiscal [15][16] - Intense competition from rivals like The Home Depot, Floor & Decor, and Builders FirstSource poses challenges for maintaining or growing market share [18] - Approximately 40% of Lowe's cost of goods sold is sourced from outside the U.S., making it vulnerable to potential tariff increases, which could impact margins [19] Consensus Estimates - The Zacks Consensus Estimate for Lowe's earnings per share has been revised downward, with a decrease of two cents to $1.81 for Q4 of fiscal 2024 and five cents to $3.12 for Q1 of fiscal 2025 [20] Final Assessment - Lowe's appears attractive relative to industry peers but slightly expensive compared to its historical median level, with recent stock price dips and trading below the 50-day moving average suggesting caution [21][22] - Strategic initiatives and potential benefits from lower borrowing costs due to recent interest rate cuts may enhance growth potential, but the balance of risks and rewards suggests a prudent approach for investors [22]

Core Insights - Lowe's Companies, Inc. highlighted its financial targets for both the near-term and long-term during the 2024 Analyst and Investor Conference, introducing a standardized framework to leverage generative AI for enhancing customer experiences and productivity [1] Financial Outlook - Lowe's reaffirmed its FY24 sales projection between $83 billion and $83.5 billion, with a consensus estimate of $83.34 billion [3] - The company expects comparable sales to decline by 3.0% to 3.5% and adjusted EPS to be between $11.80 and $11.90, with a consensus estimate of $11.89 [4] - An analyst estimates FY24 sales at $83.3 billion, comparable sales at -3.3%, and adjusted EPS at $11.87 [6] Strategic Initiatives - Lowe's launched the first product marketplace in the U.S. home improvement industry, partnering with new sellers and existing suppliers to enhance its online offerings [2] - The company plans to relaunch MyLowe's Pro Rewards in early 2025, simplifying the rewards process for small-to-medium Pro customers, allowing them to save 5% daily on eligible purchases [3] - Lowe's aims to open 10-15 stores annually in fast-growing U.S. markets and expand rural assortments to 150 more stores, enhancing selections in various categories [4][5] Leadership Commentary - Marvin R. Ellison, Lowe's chairman, president, and CEO, emphasized the company's investments for long-term growth and the evolution of its Total Home strategy to meet customer needs [5] Market Position - Goldman Sachs analyst rated Lowe's as a Buy with a price target of $276, indicating positive market sentiment [5] - As of the last check, LOW shares were down 0.31% at $269.28 [7]

Core Insights - Lowe's held its annual investor day, outlining plans for 2025 and beyond, focusing on returning to revenue growth [1][2] - The company anticipates a decline in sales for 2024 due to inflation and a sluggish housing market [1][4] - Lowe's aims to increase market share among professional contractors and expects an improved housing market to positively impact sales [1][3] Financial Projections - For fiscal 2024, Lowe's projects revenue between $83 billion and $83.5 billion, a decrease from $86.38 billion in fiscal 2023, with comparable store sales expected to decline by 3% to 3.5% [4] - Looking ahead to fiscal 2025, Lowe's forecasts potential sales growth, estimating revenues could range from $82 billion to $87 billion depending on market conditions [5][6] Market Trends and Strategies - The retailer plans to enhance its offerings with a revamped rewards program and expanded online product selection to attract both DIY customers and professional contractors [3][7] - Over the next three to five years, factors such as lower mortgage rates and increased consumer confidence are expected to drive sales growth [7] - The company acknowledges the impact of macroeconomic factors on consumer spending, particularly in the "big ticket" categories [8][9]

Core Viewpoint - Lowe's Companies, Inc. is updating its long-term financial targets and growth initiatives during its 2024 Analyst and Investor Conference, focusing on enhancing customer experience and driving productivity through technology and strategic investments [1][2]. Growth Initiatives - The company is evolving its Total Home strategy, which includes five key growth initiatives: Drive Pro Penetration, Accelerate Online Sales, Expand Home Services, Create a Loyalty Ecosystem, and Increase Space Productivity [2]. - Lowe's has achieved a 30% penetration rate among Pro customers, indicating strong momentum in this segment [2]. Technology and Innovation - A new AI framework has been developed to enhance customer experience and productivity, leveraging partnerships with leading tech platforms like NVIDIA, OpenAI, and Palantir [2]. - The company is piloting new AI solutions to improve the in-store shopping experience for customers [3]. Marketplace Expansion - Lowe's has launched the first product marketplace in the U.S. home improvement industry, allowing new sellers and existing suppliers to offer their full product catalogs without the need for inventory management [4]. Loyalty Programs - The Pro loyalty program is being relaunched as MyLowe's Pro Rewards in early 2025, designed for small-to-medium Pro customers, offering easier reward earning and redemption [5]. - The company is integrating its DIY and Pro loyalty programs into a single ecosystem to enhance value for different customer segments [6]. Delivery and Service Enhancements - Lowe's is launching a Pro Extended Aisle to improve jobsite delivery through a direct interface with supplier systems, aiming to capture more planned Pro spending [7]. Store Growth Strategy - The company plans to open 10-15 new stores annually in fast-growing U.S. markets, while also extending its rural offerings to 150 more stores, bringing the total rural store count to nearly 500 [8]. Financial Outlook - Lowe's is providing scenario planning details for its 2025 financial performance, with expectations of generating approximately $1 billion in annual cost savings through new productivity initiatives [9]. - The company affirms its full-year 2024 outlook, projecting total sales between $83.0 billion and $83.5 billion, with comparable sales expected to decline by 3.0% to 3.5% [11][13].

Company Overview - Lowe's Companies is the world's second-largest home improvement chain with trailing-12-month sales of $83.7 billion, following Home Depot [1] - The company has generated a total return of 245,200% over the past 50 years, creating significant wealth for early shareholders [1] Current Challenges - The retail stock is trading near its peak with a market capitalization of $150 billion, raising questions about its potential to create new millionaires [2] - The company is experiencing softer demand from customers due to macroeconomic headwinds, including higher interest rates and inflation [2] Financial Performance - In Q3 2024, Lowe's reported revenue of $20.2 billion, a decline of 1.5% year over year, attributed to a 1.1% decrease in same-store sales [3] - The company noted weakness among DIY customers, who are hesitant to engage in costly renovation projects [4] Future Outlook - Management has raised its full-year revenue guidance to between $83 billion and $83.5 billion for fiscal 2024, an increase of $300 million from previous estimates [5] - The Federal Reserve's interest rate cuts may stimulate economic growth, potentially increasing demand for Lowe's products as households may resume renovation projects [6] Industry Trends - The median age of homes in the U.S. was 40 years in 2022, up from 31 in 2005, indicating a trend that favors home improvement spending [7] - There is a documented housing inventory shortage of 4 million to 7 million homes, encouraging consumers to invest in home improvements rather than purchasing new homes [7] Valuation and Capital Returns - Lowe's shares have outperformed the market, with a total return of 157% since late November 2019 [8] - The current price-to-earnings (P/E) ratio is 22.9, slightly below the trailing-10-year average and lower than the S&P 500's P/E ratio of 24.7 [8] - The company has a strong capital allocation policy, having paid dividends for over 25 years and repurchasing $758 million worth of stock in the last three months [9] Investment Consideration - Lowe's shares are trading at a 22% discount compared to its main rival, Home Depot, making it an attractive option for investors [10] - However, potential investors should temper expectations regarding future returns, as the company is large and past performance may not be indicative of future results [10]

Core Viewpoint - Lowe's Companies is perceived as a stable investment option despite challenges, being the second-largest home improvement retailer in the U.S. after Home Depot [1] Company Overview - Lowe's operates 1,747 stores across all 50 U.S. states, nearing market saturation, with limited expansion opportunities as it has exited international markets [3] - The company is classified as a value stock, which may lead to slower growth prospects [3] Financial Performance - For the first nine months of fiscal 2024, Lowe's reported revenue of $65 billion, a 4% decline from the same period in fiscal 2023, with net income at $5.8 billion, down 13% year-over-year [6] - Projected revenue for fiscal 2024 is $83 billion, indicating a decline of just under 4%, with analysts forecasting less than 2% growth for fiscal 2025 [7] Dividend and Shareholder Incentives - Lowe's offers an annual dividend of $4.60 per share, yielding 1.7%, which is higher than the S&P 500's yield of 1.2%, and has a history of annual payout increases for over 50 years [4] - Long-term shareholders are incentivized to hold the stock due to the reliable dividend, despite the company's slow growth profile [11] Growth Strategy - CEO Marvin Ellison's "Total Home Strategy" aims to drive growth through increased ties with professional contractors, higher online sales, more installation services, localization, and enhanced product assortment [5] - The strategy may benefit from falling interest rates, although demand for discretionary home improvement projects has been affected by inflation [5] Market Position and Valuation - Lowe's stock has slightly outperformed the S&P 500 over the past year, but its P/E ratio of 23 is above its five-year average of 20, suggesting limited upside potential [8] - The company faces challenges in generating revenue growth without significant store additions, particularly after exiting Canada and Mexico [10]

Group 1: Company Performance and Analyst Ratings - Following its third-quarter earnings report, several Wall Street analysts raised their price targets on Lowe's Companies, with Truist's Scot Ciccarelli increasing his target to $310 while maintaining a buy rating on the stock [1] - Lowe's is seen as a beneficiary of an improving outlook for home spending, driven by lower mortgage rates and an increase in home sales, which typically leads homeowners to spend on improvements [2] Group 2: Market Conditions and Trends - The home improvement sector has gained attention this year due to expectations of a falling-interest-rate environment, although market and mortgage rates have moved in the opposite direction despite Federal Reserve rate cuts [2][4] - Historical trends suggest that market rates will eventually decline, but this may take longer than what current valuations for home improvement stores imply [4] Group 3: Sales and Financial Metrics - There is ongoing pressure on larger-ticket discretionary item sales, with Lowe's expecting comparable sales to decline by 3% to 3.5% in 2024 [6] - The EV to EBITDA (Forward) ratio for Lowe's is 19.04, while for Home Depot it is 18.00, indicating competitive valuation metrics [5] Group 4: Alternative Investment Opportunities - While Lowe's and Home Depot are prominent options in the home improvement sector, their valuations suggest limited upside potential, leading to consideration of better-value alternatives such as Pentair, Whirlpool, and Owens Corning [7]

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended November 1, 2024 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from ______ to ______ Commission File Number 1-7898 LOWE'S COMPANIES, INC. (Exact name of registrant as specified in its charter) North Carolina 56-0578072 (Stat ...

Group 1 - Lowe's is a market leader in the home improvement market, benefiting from scale, leading private label brands, and strong vendor relationships [1] - The stock price of Lowe's has seen significant gains this year, yet its valuation remains reasonable [1] - The company is recognized as a Dividend Aristocrat, indicating a strong commitment to dividend growth [1] Group 2 - The focus on dividend growth investing highlights the importance of sustainable dividend growth and capital appreciation potential in large-cap stocks [1] - There is an emphasis on the growth potential of tech and small- or mid-cap stocks, regardless of dividend status [1]

Lowe’s Companies NYSE: LOW price action pulled back from its October peak, providing a second-chance opportunity for investors. The opportunity is to add to positions or create new ones at a discounted price. Tepid results cause the pullback, but it is unlikely to get much deeper because of the company’s operational quality and the outlook for next year. Headwinds remain for Lowe’s and other retailers, but its earnings report and others show signs of consumer resilience and strength. Reports from Lowe’s, Ho ...