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Using the recent share price of $190, Lowe’s was trading with a multiple of 17.3 times earnings. We have a target price-to-earnings ratio of 20 as Lowe’s has typical underperformed its peer. Achieving our target valuation by 2026 would result in a 2.9% annual contribution from multiple expansion. With an annualized dividend of $6.60 and our expectation for earnings-per-share for the year, Home Depot has a dividend payout ratio of 50%. This is slightly above the 10-year average payout ratio of 44%, but not to a point where we are concerned about a dividend cut.
They rarely distribute dividends to shareholders, opting for reinvestment in their businesses. More value-oriented stocks tend to represent financial services, utilities, and energy stocks. These are established companies that reliably pay dividends. Lowe's Companies, Inc., together with its subsidiaries, operates as a home improvement retailer in the United States and internationally. The company offers a line of products for construction, maintenance, repair, remodeling, and decorating. It also offers installation services through independent contr...
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Our investment management business generates asset-based fees, which are calculated as a percentage of assets under management. We also sell both admissions and sponsorship packages for our investment conferences and advertising on our websites and newsletters. High-growth stocks tend to represent the technology, healthcare, and communications sectors.
Lowe's Companies, Inc. (Lowe's) is a home improvement company. The Company operates home improvement and hardware stores. The Company offers a range of products for maintenance, repair, remodeling and decorating.
Target, Lowe's And 2 Other Stocks Insiders Are Selling
Center for Financial Planning Inc. now owns 515 shares of the home improvement retailer’s stock worth $97,000 after purchasing an additional 112 shares during the last quarter. Iowa State Bank increased its holdings in shares of Lowe’s Companies by 2.6% during the 3rd quarter. Iowa State Bank now owns 18,555 shares of the home improvement retailer’s stock worth $3,485,000 after purchasing an additional 464 shares during the period.
Deutsche Bank AG now owns 2,324,728 shares of the home improvement retailer’s stock valued at $406,063,000 after buying an additional 713,735 shares during the last quarter. Institutional investors own 74.04% of the company’s stock. Evercore ISI reduced their target price on shares of Lowe’s Companies to $225.00 in a report on Monday, December 12th. Oppenheimer reaffirmed an “outperform” rating and set a $300.00 target price on shares of Lowe’s Companies in a report on Thursday, November 17th. Loop Capital reduced their target price on shares of Lowe’s Companies from $210.00 to $200.00 in a report on Friday, December 9th. Piper Sandler increased their price objective on shares of Lowe’s Companies from $248.00 to $253.00 and gave the stock an “overweight” rating in a research note on Thursday, November 17th.
Home Depot and Lowe's Will Be Hurt by a Slowing Housing Market, Analyst Says
A number of other hedge funds and other institutional investors have also recently added to or reduced their stakes in LOW. Toth Financial Advisory Corp boosted its position in shares of Lowe’s Companies by 18.5% in the third quarter. Toth Financial Advisory Corp now owns 39,908 shares of the home improvement retailer’s stock valued at $7,495,000 after acquiring an additional 6,217 shares during the period. Center for Financial Planning Inc. grew its position in Lowe’s Companies by 27.8% in the 3rd quarter.
First quarter e-commerce sales improved 37% and had a two-year stack rate of nearly 150% so Lowe’s has really begun to turn this channel into a source of strength. Maintaining independence and editorial freedom is essential to our mission of empowering investor success. We provide a platform for our authors to report on investments fairly, accurately, and from the investor’s point of view. We also respect individual opinions––they represent the unvarnished thinking of our people and exacting analysis of our research processes. Our authors can publish views that we may or may not agree with, but they show their work, distinguish facts from opinions, and make sure their analysis is clear and in no way misleading or deceptive. Provide specific products and services to you, such as portfolio management or data aggregation.
News & Analysis
We feel this is appropriate as earnings have compounded at a rate of more than 20% over the last five years. Higher earnings growth may not materialize off an elevated base. Home Depot did maintain its dividend through the last recession, but returned to growth shortly thereafter.
Lowe's Companies, Inc, together with its subsidiaries, operates as a home improvement retailer in the United States and internationally. Moody’s Daily Credit Risk Score is a 1-10 score of a company’s credit risk, based on an analysis of the firm’s balance sheet and inputs from the stock market. The score provides a forward-looking, one-year measure of credit risk, allowing investors to make better decisions and streamline their work ow. Updated daily, it takes into account day-to-day movements in market value compared to a company’s liability structure. The firm also recently disclosed a quarterly dividend, which will be paid on Wednesday, February 8th. Shareholders of record on Wednesday, January 25th will be given a dividend of $1.05 per share.
Magellan Asset Management Ltd increased its holdings in Lowe’s Companies by 5.9% during the second quarter. Magellan Asset Management Ltd now owns 3,360,638 shares of the home improvement retailer’s stock valued at $587,003,000 after buying an additional 185,773 shares during the last quarter. Finally, Deutsche Bank AG increased its holdings in Lowe’s Companies by 44.3% during the second quarter.
Some investors allocate excess cash to new investments or add to existing holdings. Of the two home improvement stocks, we recommend that investors buy shares of Lowe’s due to its higher expected returns over the next five years. Using projected returns, we believe that Lowe’s is the better investment as the stock appears to be undervalued against our target multiple. Our usual threshold to issue a buy rating is at least 10% annual returns and Home Depot is just under this level. We expect Lowe’s to grow earnings-per-share at a rate of 7% per year for the next five years, below its 10-year average earnings growth rate of 18%.
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