Lowe’s Companies: Great Track Record But Not A Great Buy Right Now

Summary:

• Lowe’s is a high-quality business with a strong history of revenue growth, a stable gross profit margin, and a healthy return on invested capital.
• LOW has an outstanding history of 61 years of consecutive dividend growth, earning it the titles of Dividend King, Aristocrat, and Champion.
• The two most recent dividend increases have been rather low, around 4.5%, but the company has a very attractive long-term dividend growth history.
• My custom valuation model rates LOW as overvalued at the moment and is one of the drivers of my Hold rating for the stock.

Company Description

Lowe’s Companies, Inc. (NYSE:LOW) along with its subsidiaries, operates as a home improvement retailer predominantly in the United States but also internationally. The company sells all of your typical hardware warehouse products but also generates revenue from up-selling

Analyst’s Disclosure: I/we have a beneficial long position in the shares of LOW, HD either through stock ownership, options, or other derivatives. 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.