10 Best Home Appliance Stocks to Buy According to Analysts

8. Lowe’s Companies, Inc. (NYSE:LOW)

Analyst Upside: 20.54%

Lowe’s Companies, Inc. (NYSE:LOW) offers home improvement products in various categories, including appliances, lawn and garden, kitchens and baths, and building materials among others. Its portfolio includes an elaborate collection of national brand-name merchandise and its private brands. The company operates more than 1,700 home improvement stores.

It reported sales worth $20.2 billion in fiscal Q3 2024, which were primarily driven by the company’s strength in two key categories: online sales and Pro, which offers membership discounts based on how much the customers spend.

Lowe’s Companies, Inc. (NYSE:LOW) has three primary business drivers that are continually working in its favor. These include strong home price appreciation, disposable personal income outpacing inflation, and the medium age of homes in the US standing at its oldest in US history. These drivers are anticipated to support demand for the company’s offerings in the long term, as existing homeowners are likely to continue investing in home upgrades and repairs.

Madison Investors Fund stated the following regarding Lowe’s Companies, Inc. (NYSE:LOW) in its Q3 2024 investor letter:

“In the third quarter, the top five individual contributors to performance relative to the benchmark were Parker-Hannifin Corporation, Fiserv, Lowe’s Companies, Inc. (NYSE:LOW), Brookfield Corporation, and Progressive Corporation. Despite operating in very different sectors, Lowe’s Companies and Brookfield Corporation are both expected to benefit from the economic activity spurred on by declining interest rates. The Federal Reserve’s decision to lower interest rates sparked investor enthusiasm for both companies during the quarter, even as their sales and profits continue to moderate. For Lowe’s, sales remained weak in the latest quarter as most measures of the housing market remain sluggish. However, if interest rates come down and mortgages become more affordable, activity should return to the housing market which will boost Lowe’s business.”