Lowe's stock looks cheap as home improvement trends improve
Updated
Updated · Barron's · May 8
Lowe's stock looks cheap as home improvement trends improve
10 articles · Updated · Barron's · May 8
Shares are down 20% to $231 from February's $287 record, while analysts expect first-quarter same-store sales to rise 0.5% and earnings of $2.96 a share on 20 May.
UBS and Evercore data suggest contractor demand is strengthening, with industry sales up 3.8% year on year through March and pros increasingly reporting higher project volumes.
At 18 times forward earnings, below Home Depot and the S&P 500, Lowe's could benefit if its higher-margin professional business, about 30% of sales in early 2025, keeps expanding.
Can Lowe's bet on pro contractors win against the headwinds of tariffs and a slowing housing market?
With aging homes needing repairs but financing tight, is the home improvement boom about to bust?