Can Lowe's Stock Rebound From Its Flat 2025?

Core Insights - Lowe's stock performance has been flat year to date, contrasting with the S&P 500's 16% gain, although it has seen a 47% increase over the past five years compared to the index's 86% [1] - The company offers a dividend yield of 1.9%, which contributes to total returns but remains below broader market performance [1] Group 1: Professional Builder Focus - Lowe's is actively targeting professional builders and contractors, who tend to spend more and visit more frequently [4] - Recent acquisitions, including Artisan Design Group and Foundation Building Materials, aim to enhance Lowe's appeal to these professional customers [4] - The MyLowe's Pro Rewards program has been successful, providing exclusive deals and savings for professional builders, which the company sees as crucial for sustainable sales and profit growth [5] Group 2: Financial Performance and Challenges - Despite growth in professional sales, Lowe's overall business has shown stagnation, with only 0.4% year-over-year comparable sales growth in Q3 and a total sales increase of 3% [6] - Net income decreased by 5%, indicating potential profitability concerns [6] - Lowe's projects $1.4 billion in interest expenses for the year, up from a previous estimate of $1.3 billion, which significantly impacts profits, as 14% of net operating income is allocated to interest [7][8]