Lowe’s Companies (NYSE:LOW) shares snapped six straight days of gains as the stock closed 0.47% lower, at $240.02 on Monday.
The home-improvement retailer gained more than 6% in the last six trading days. The stock closed 1.09% higher, at $241.15 on Friday.
The stock has lost more than 2.5% so far this year, compared to an over 8% gain in the broader benchmark index. LOW is up 7% over the past one month.
Jefferies’ analyst Jonathan Matuszewski pointed out recently that homeowners are increasingly leveraging home equity to fund repair and remodeling (R&R) projects, with Home Depot (HD) and Lowe’s (LOW) emerging as key beneficiaries—capturing nearly a quarter of the $1 trillion R&R market.
After COVID, big-ticket projects were undermined by a shift in spending on services, higher financing rates, and anemic housing turnover. In particular, high-interest rates kept Home Equity Line of Credit (HELOC) withdrawals less than a third of pre-COVID levels.
However, first quarter data shows homeowners withdrawing nearly $25B in equity, up 22% from last year, marking the second largest second-lien equity withdrawal volume since 2008, with bathroom remodels and door and window replacements the top projects.
Seeking Alpha’s Quant rating has rated LOW as HOLD, while SA authors and Wall Street analysts see the stock as a BUY.