|Bid||100.92 x 1000|
|Ask||101.23 x 900|
|Day's range||100.23 - 101.10|
|52-week range||70.76 - 108.98|
|PE ratio (TTM)||22.02|
|Earnings date||22 Aug 2018|
|Forward dividend & yield||1.92 (2.00%)|
|1y target est||108.55|
Lowe's (LOW) has long trailed main rival Home Depot (HD), but the stock, up 7.7% year to date, has been the better performer in 2018, amid management changes and upbeat earnings. The home-improvement chain can build on that progress, says Oppenheimer's Brian Nagel. Nagel rates both Lowe's and Home Depot at Outperform, but says Lowe's is his "top pick," and raised his price target on it to $140 from $115 on Friday, adding that the "stars are aligning" for the company.
In the first quarter, Lowe’s (LOW) posted EPS of $1.19 on revenue of $17.4 billion, missing analysts’ estimates of $1.22 and $17.5 billion, respectively. Despite posting lower-than-expected first-quarter earnings, Lowe’s stock rose due to reports of Bill Ackman’s Pershing Square Capital acquiring a $1 billion stake in Lowe’s. It rose 2.8% in the first half of 2018 and has risen 4.3% year-to-date. During the first quarter, outdoor sales comprised 35% of Lowe’s total sales.
Shares of Lowe's (LOW) are heading higher on Tuesday, following news that the home-improvement retailer had reworked its management team. After the close Monday, Lowe's announced a new leadership structure, in which the positions of chief operating officer, chief customer officer, corporate administration executive and chief development officer were eliminated. The company said that the responsibilities associated with those titles would be redistributed to other, new positions and senior executives that report directly to Chief Executive Marvin Ellison. Analysts are weighing in on the move today.
Lowe’s is getting rid of its chief operating officer as part of an overhaul of its management structure, the US home improvement retailer announced on Monday. The company, which has come under pressure from activist investors to improve its performance, will also be eliminating the positions of chief customer officer, corporate administration executive and chief development officer as part of the restructuring. “[The] responsibilities formerly under these roles will be assumed by other senior leadership roles that will report directly to [chief executive Marvin] Ellison,” Lowe’s said.
The stock prices of the companies tend to rise when analysts raise their price targets, and vice versa. Of the four major home improvement companies, Lowe’s has been the most favored stock among Wall Street analysts.
Valuation multiples help investors to compare companies with similar business models. Forward PE is determined by dividing a company’s stock price by analysts’ earnings estimates for it over the next four quarters.
Dividends help investors smooth out return volatility, which is vital for cyclical companies, including home improvement retailers. Home improvement retailers’ sales depend heavily on the economy and other macroeconomic factors. Home Depot (HD) paid a quarterly dividend of $1.03 per share on June 14 to its shareholders on record as of May 31.
In the first quarter, Home Depot (HD) posted adjusted EPS of $2.08, which represented a rise of 24.6% from its EPS of $1.67 in the corresponding quarter of the previous year. Home Depot’s EPS growth was driven by revenue growth, the expansion of its net margins, and share repurchases. Share repurchases drove the company’s EPS by lowering its total number of shares outstanding.
In the first quarter, Home Depot (HD) posted SSSG (same-store sales growth) of 4.2%, lower than analysts’ consensus expectation of 5.4%.
Home Depot (HD) outperformed Lowe’s (LOW) in terms of revenue growth in the first quarter. During the quarter, Home Depot posted revenue of $25.0 billion, which represented a rise of 4.4% from its revenue of $23.9 billion in the corresponding quarter of the previous year. Home Depot’s revenue was driven by positive SSSG (same-store sales growth) of 4.2%, the addition of new stores, and new accounting standards, which contributed $33 million to its net sales.
Attractive stocks have exceptional fundamentals. In the case of Lowe’s Companies Inc (NYSE:LOW), there’s is a highly-regarded dividend-paying company with a an impressive track record of delivering benchmark-beating performance. InRead More...
Lowe's Companies announced Monday that Chief Financial Officer Marshall will retire, effective Oct. 5, after a little over a year in the role, and 21 years at the company. Croom had become CFO of the home ...