Lowe’s: Hammering Out Strong Results, But Don’t Overpay For The Blueprint

Summary:

• Lowe’s reported strong Q3’24 results with $20.2 billion in sales and EPS of $2.89, driven by Pro and online sales growth.
• The company’s strategic investments in Pro loyalty programs and digital capabilities have enhanced customer experience and driven repeat business.
• Despite macroeconomic challenges, Lowe’s has a strong track record of revenue and EBITDA growth, with a total shareholder return of 265% over the last decade.
• The outlook remains cautiously optimistic, with potential tailwinds from easing interest rates and long-term demand drivers like millennial household formation and Baby Boomers aging in place.
• I’m issuing coverage with a ‘hold’ rating, noting that the valuation is probably not overly expensive today, but is above historical averages.

Introduction

Lowe’s (LOW) is a home improvement retailer in North America with a store count of over 1,700 stores. The company sells a wide range of home improvement products, including building materials, tools, appliances, and lawn and garden supplies. Lowe’s serves both DIY (do-it-yourself) customers and

Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Seeking Alpha’s Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.