Group 1 - Lowe's is set to announce Q4 earnings on February 26th, with an EPS target of $1.83 and projected sales of $18.25 billion, indicating continued year-over-year stagnation [1] Group 2 - The financial analyst Harrison has been following the market for over a decade and has professional experience in private equity, real estate, and economic research [1] - Harrison possesses an academic background in financial econometrics, economic forecasting, and global monetary economics [1]

Core Viewpoint - Lowe's Companies, Inc. is set to hold its Fourth Quarter & Fiscal 2024 Earnings Conference Call on February 26, 2025, at 9 a.m. Eastern time, with a webcast available for investors [1]. Company Overview - Lowe's Companies, Inc. is a FORTUNE® 50 home improvement company that serves approximately 16 million customer transactions weekly in the United States [3]. - The company reported total sales exceeding $86 billion for the fiscal year 2023 and operates over 1,700 home improvement stores with around 300,000 employees [3]. - Based in Mooresville, N.C., Lowe's is committed to community support through initiatives aimed at creating safe, affordable housing and developing skilled trade experts [3].

Core Points - Lowe's has launched the MyLowe's Pro Rewards program, enhancing its MVPs Pro Rewards & Partnership Program to offer more benefits for professional customers [1][2] - The program allows professionals to earn points from their first dollar spent, providing an intuitive experience similar to the homeowner loyalty program [2][3] - MyLowe's Pro Rewards features a three-tiered system (Gold Pro, Platinum Pro, Titanium Pro) with benefits increasing at each level [4] Group 1: Program Features - Members earn points that can be redeemed for MyLowe's Money, exclusive deals, and other rewards [1][2] - The program includes a 5% discount on eligible purchases for those using the MyLowe's Pro Rewards Credit Card, along with a free upgrade to Platinum Pro status [2][8] - Additional benefits include access to member-only deals, free standard shipping, volume discounts, and a customized in-app experience for tracking points and reordering [8][12] Group 2: Company Commitment - Lowe's aims to create a loyalty ecosystem centered around customer needs, emphasizing savings and value for both DIY and Pro members [5][3] - The program is designed to reward professionals without requiring special volume thresholds, showcasing Lowe's commitment to saving time and money for its Pro customers [3][5] - The company reported total fiscal year 2023 sales exceeding $86 billion, indicating a strong market presence and commitment to community support [12]

Core Insights - Lowe's Hometowns program is expected to benefit over 500,000 people within a year of its completion in 2024, and more than 3 million since its launch in 2022 [1] - The program has inspired thousands of community improvement projects across the U.S., leveraging Lowe's associates' DIY expertise and community relationships [2] - The program supports various community projects, including expanding food banks and renovating community spaces, through grants and employee volunteer efforts [3] Company Overview - Lowe's Companies, Inc. is a FORTUNE® 50 home improvement company with over 1,700 stores and approximately 300,000 employees, serving around 16 million customer transactions weekly [5] - The company reported total sales exceeding $86 billion for the fiscal year 2023 [5] - Lowe's focuses on creating safe, affordable housing and developing skilled trade experts through community support programs [5] Project Types - Eligible projects under the Lowe's Hometowns program include rebuilding or renovating shelters, community resources, outdoor spaces, cultural preservation sites, and facilities for skilled trades education [7]

Company Performance - Lowe's stock closed at $262.20, reflecting a +0.34% change from the previous trading day's closing, outperforming the S&P 500's loss of 0.29% [1] - The stock gained 4.77% over the previous month, surpassing the Retail-Wholesale sector's gain of 3.53% and the S&P 500's gain of 2.52% [1] Upcoming Earnings - Lowe's earnings report is scheduled for February 26, 2025, with projected earnings per share (EPS) of $1.81, indicating a 2.26% increase from the same quarter last year [2] - Revenue is forecasted to be $18.22 billion, reflecting a 2.07% decline compared to the same quarter of the previous year [2] Annual Estimates - For the entire year, the Zacks Consensus Estimates predict earnings of $11.88 per share and revenue of $83.32 billion, representing changes of -10% and -3.54% respectively compared to the previous year [3] Analyst Revisions - Changes in analyst estimates for Lowe's are crucial as they reflect short-term business trends, with positive revisions indicating analyst optimism about the company's profitability [3][4] Zacks Rank - Lowe's currently holds a Zacks Rank of 3 (Hold), with the Zacks Consensus EPS estimate having moved 0.03% higher over the last 30 days [5] Valuation Metrics - Lowe's is trading with a Forward P/E ratio of 22, which is a premium compared to the industry average Forward P/E of 21.49 [6] - The company has a PEG ratio of 2.19, slightly above the average PEG ratio of 2.18 for Retail - Home Furnishings stocks [7] Industry Context - The Retail - Home Furnishings industry is part of the Retail-Wholesale sector and currently holds a Zacks Industry Rank of 149, placing it in the bottom 41% of over 250 industries [8]

Core Insights - Dividend growth investing is a powerful strategy for long-term wealth creation, with companies that consistently raise dividends demonstrating robust financial health, prudent management, and enduring competitive advantages [1] - Smart dividend growth investors focus on a five-year dividend growth rate above 6% and a payout ratio under 75% to identify companies built for sustainable dividend growth [2] Company Analysis: Lowe's - Lowe's commands a powerful position in the North American home improvement retail space through comprehensive product selection and an extensive store network [4] - The company's strategic focus on the professional contractor segment has proven successful, capturing a growing share of this high-value market [5] - Lowe's offers an attractive dividend yield of 1.69% supported by a 16.4% compound annual dividend growth rate over the past five years and a conservative payout ratio of 36.7% [6] - Shares trade at an attractive 21.1 times forward earnings, representing a discount to the S&P 500's forward P/E ratio of 23.6, presenting a compelling investment opportunity [7] - Lowe's competitive moat is built on brand strength, logistics capabilities, and omnichannel excellence, positioning it well for continued market leadership [8] Company Analysis: NextEra Energy - NextEra Energy is North America's premier electric-power provider and the world's largest producer of wind and solar energy, with a dual-segment structure that combines stable cash flow from regulated utility operations and growth from renewable energy development [9][10] - The stock offers a 2.91% yield, significantly exceeding many clean energy peers, with a five-year dividend growth rate of 10.5% and a healthy payout ratio of 59.7% [11] - Shares trade at 19.3 times forward earnings, providing an attractive entry point into the fast-growing renewable energy space [12] - NextEra's early commitment to renewable energy has created significant competitive advantages, positioning the company for sustained growth in the expanding renewable power market [13] Portfolio Construction - Lowe's and NextEra Energy represent compelling cornerstones for dividend growth portfolios, each dominating distinct sectors with strong secular tailwinds [14] - Both companies demonstrate exemplary financial discipline and shareholder focus, evidenced by robust dividend growth rates and conservative payout ratios, presenting attractive entry points for long-term investors [15]

Group 1 - Lowe's has an average brokerage recommendation (ABR) of 1.78, indicating a consensus between Strong Buy and Buy, based on 34 brokerage firms' recommendations [2] - Out of the 34 recommendations, 20 are Strong Buy and 1 is Buy, accounting for 58.8% and 2.9% of all recommendations respectively [2] - The ABR suggests a buying opportunity for Lowe's, but relying solely on this information may not be advisable due to the limited success of brokerage recommendations in guiding investors [4][9] Group 2 - Brokerage firms often exhibit a positive bias in their ratings due to vested interests, leading to a disproportionate number of Strong Buy recommendations compared to Strong Sell [5][9] - The Zacks Rank, which is based on earnings estimate revisions, is presented as a more reliable indicator of near-term stock price performance compared to the ABR [7][10] - The Zacks Consensus Estimate for Lowe's remains unchanged at $11.88, suggesting that analysts have steady views on the company's earnings prospects [12] Group 3 - The Zacks Rank for Lowe's is currently 3 (Hold), indicating a cautious approach despite the Buy-equivalent ABR [13] - The ABR may not be up-to-date, while the Zacks Rank reflects timely changes in earnings estimates, providing a more accurate indication of future price movements [11]

Core Points - Lowe's is donating $2 million to support relief and recovery efforts in response to the wildfires in Southern California [1] - The donation will assist first responders and nonprofits in critical needs such as evacuations, emergency shelter, and distribution of essential supplies [1] - Lowe's Emergency Command Center is actively monitoring the situation to route supplies to affected areas [3] Company Overview - Lowe's Companies, Inc. is a FORTUNE® 50 home improvement company with over 1,700 stores and approximately 300,000 employees [4] - The company serves around 16 million customer transactions weekly and reported total sales exceeding $86 billion for fiscal year 2023 [4] - Lowe's is committed to supporting communities through programs focused on safe housing and developing skilled trade experts [4]

Core Insights - Lowe's Companies, Inc. is focusing on improving revenues and customer engagement through a pro-customer approach and an omnichannel strategy [1] Group 1: Pro Customer Strategy - The emphasis on serving professional customers, including contractors and small business owners, has become crucial for growth as consumers prioritize essential purchases due to inflation [2] - Lowe's has tailored services and dedicated support for Pro customers, resulting in high single-digit comparable sales growth in this segment during Q3 of fiscal 2024 [3] - The Pro segment has achieved a 30% market share, and Lowe's plans to relaunch its Pro loyalty program as "MyLowe's Pro Rewards" in early 2025 to enhance customer engagement [4] Group 2: Omnichannel Initiatives - Lowe's is expanding its omnichannel capabilities, allowing seamless shopping experiences across in-store, online, and mobile platforms, which enhances customer convenience [5] - The company has partnered with DoorDash, Shipt, and Instacart for same-day delivery and launched a product marketplace, broadening its digital assortment and catering to various customer segments [6] - Online comparable sales grew by 6% in the last reported quarter, driven by increased traffic and conversion rates, particularly on Lowe's mobile app [7] Group 3: Technology and Expansion - Lowe's is integrating AI technology to improve online search, product recommendations, and demand planning, which is expected to enhance operational efficiency [9] - The company plans to open 10-15 new stores annually in high-growth U.S. markets, supporting its growth strategy [9] Group 4: Competitive Positioning - Lowe's is focusing on building stronger relationships with Pro customers while enhancing its online and in-store offerings to mitigate pressures in the DIY discretionary categories [10] - The company is investing in its Total Home strategy to differentiate itself in the competitive home improvement market against rivals like The Home Depot, Inc. [10] - Shares of Lowe's have advanced 15% over the past year, outperforming the industry's rise of 12.9% [11]

Company Performance - Lowe's stock closed at $248.48, with a daily increase of +0.61%, underperforming the S&P 500's gain of 1.26% [1] - Over the last month, Lowe's shares decreased by 8.55%, while the Retail-Wholesale sector and S&P 500 saw losses of 1.93% and 2.82%, respectively [1] Earnings Projections - The upcoming earnings report for Lowe's is projected to show earnings per share (EPS) of $1.81, a 2.26% increase year-over-year [2] - Revenue is estimated at $18.22 billion, reflecting a 2.07% decline from the same quarter last year [2] Annual Estimates - For the annual period, earnings are anticipated to be $11.88 per share, with revenue expected at $83.32 billion, indicating declines of -10% and -3.54% from the previous year [3] - Recent shifts in analyst projections are important for investors, as positive revisions indicate confidence in the company's performance [3] Valuation Metrics - Lowe's is currently trading at a Forward P/E ratio of 20.8, which is higher than the industry average of 20.13 [6] - The PEG ratio for Lowe's stands at 2.07, compared to the Retail-Home Furnishings industry's average PEG ratio of 2.04 [6] Industry Ranking - The Retail-Home Furnishings industry ranks 151 in the Zacks Industry Rank, placing it in the bottom 40% of over 250 industries [7] - The Zacks Industry Rank measures the strength of industry groups, with the top 50% rated industries outperforming the bottom half by a factor of 2 to 1 [7]