04. Lowe’s Companies, Inc. (NYSE:LOW)
Number of Hedge Fund Holders: 62
Lowe’s Companies, Inc. (NYSE:LOW), a leading home improvement retailer in the United States, has established itself as a go-to resource for construction, maintenance, repair, remodeling, and decorating products. With a broad array of offerings, ranging from appliances and lawn and garden supplies to tools and building materials, Lowe’s Companies, Inc. (NYSE:LOW) serves both professional customers and homeowners alike. The company’s strong position in the market, coupled with its resilience in navigating challenging economic conditions, makes it a compelling addition to the list of hurricane and natural disaster stocks to consider.
In its Q2 2024 earnings call, Lowe’s Companies, Inc. (NYSE:LOW) reported an impressive earnings per share (EPS) of $4.10, exceeding analyst expectations of $3.97. Despite facing a 5.1% decline in comparable sales year-over-year, Lowe’s demonstrated resilience through robust online sales growth of 2.9% and strong performance in the Pro segment, reflecting a strategic shift towards professional customers. The company’s proactive approach to expense management and operational efficiency, supported by its Perpetual Productivity Improvement (PPI) initiatives, helped mitigate the impact of softer DIY demand and unpredictable weather events.
Financially, Lowe’s Companies, Inc. (NYSE:LOW) remains on solid ground. The company reported second-quarter sales of $23.6 billion, showcasing its ability to maintain significant revenue levels even amid market fluctuations. The number of hedge fund holders in Lowe’s stock has increased to 62 in Q2 2024, up from 60 in the previous quarter, signaling growing institutional interest in the company. This trend is indicative of confidence in Lowe’s Companies, Inc. (NYSE:LOW) long-term growth potential.
Lowe’s Companies, Inc. (NYSE:LOW) commitment to innovation is also noteworthy. The partnership with tech leaders like Apple and NVIDIA to enhance customer experiences through advanced technologies demonstrates the company’s forward-thinking strategy. The launch of initiatives like MyLowe’s Rewards and expanded delivery options via Uber Eats indicates a keen focus on capturing a digitally savvy customer base.
Overall, Lowe’s Companies, Inc. (NYSE:LOW) presents a compelling investment opportunity within the hurricane and natural disaster sector. The combination of strong financial metrics, a growing customer base, and a strategic focus on technology and innovation positions Lowe’s Companies, Inc. (NYSE:LOW) well for future growth, making it an attractive option for investors seeking stability and potential upside in a volatile market.
Madison Investors Fund stated the following regarding Lowe’s Companies, Inc. (NYSE:LOW) in its Q2 2024 investor letter:
“At home improvement retailer Lowe’s Companies, Inc. (NYSE:LOW), sales continue to be weak. The economic backdrop in housing is particularly interesting at the moment. On one hand, employment levels are healthy and home values remain resilient. On the other hand, housing turnover, which is essentially the number of homes that have been sold relative to the housing stock, is at historically low levels as homeowners are resistant to giving up low mortgage rates on their current home for a higher rate on a new home. Housing turnover is an important business driver for Lowe’s, so the depressed level of activity has weighed on its profits. However, over time we expect it to normalize and Lowe’s performance to improve.”
