LOW

Lowe's Companies Inc.

Consumer, Macro


Presented:09/09/2014
Price:$53.03
Cap:$52.30B
Current Price:$281.83
Cap:$159.88B

Presented

Date09/09/2014
Price$53.03
Market Cap$52.30B
Ent Value$61.33B
P/E Ratio27.31x
Book Value$10.38
Div Yield1.2%
Shares O/S987.11M
Ave Daily Vol5,550,000
Short Int1.56%

Current

Price$281.83
Market Cap$159.88B
Lowe’s Companies, Inc. operates as a home improvement retailer. It offers products for maintenance, repair, remodeling, and home decorating. The company provides home improvement products under the categories of kitchens and appliances; lumber and building materials; tools and hardware; fashion fixtures; rough plumbing and electrical; lawn and garden; seasonal living; paint; home fashions, storage, and cleaning; flooring; millwork; and outdoor power equipment. It also offers installation services through independent contractors in various product categories; repair services; and MyLowes, an online tool that manages, maintains, and enhances homes. The company serves homeowners and renters consisting of do-it-yourself customers and do-it-for-me customers; and professional customers comprising construction trade, as well as maintenance, repair, and operations. As of August 1, 2014, it operated 1,837 home improvement and hardware stores with 200.8 million square feet of retail selling space in the United States, Canada, and Mexico. The company also offers its products through online sites, such as Lowes.com, Lowes.ca, and ATGstores.com. Lowe’s Companies, Inc. was founded in 1946 and is based in Mooresville, North Carolina.

​Publicly traded companies mentioned herein: Lowe’s Companies Inc (LOW). The Home Depot (HD)

Highlights

The data the presenter tracks for the housing industry suggests the timing could be right for investors to look at shares of Lowe’s Companies (LOW). He sees new and existing homes sales, pricing, and other metrics below mid-cycle levels, and is long the stock in anticipation of a reacceleration in the back half of 2014. “Housing hit a wall last year, but we are starting to see pending home sales move (they ‘ripped’ in July) and turnover is picking up, which is good for the industry.” In addition to the potential lift from favorable macro trends, operational improvements at LOW should support low 20s (%) EPS growth over the next few years.

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Idea Discussion

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