5 Most Undervalued Retail Stocks To Buy Now

2. Lowe’s Companies, Inc. (NYSE:LOW)

PE as of March 26: 19.16

Number of Hedge Fund Holders: 68

Lowe’s Companies, Inc. (NYSE:LOW) is a home improvement retailer with more than 1,700 home improvement stores and carries out 17 million customer transactions per week in the US. The company provides home improvement products, installation services, and products for construction, remodeling, etc.

Lowe’s Companies, Inc. (NYSE:LOW) has a PE ratio of 19.16 as of March 26. In Q4 of 2023, 68 hedge funds held positions in the stock, and their total stakes amounted to $3.7 billion. As of the fourth quarter of 2023, Eric W. Mandelblatt’s Soroban Capital Partners is the biggest shareholder in the company. In the quarter, the firm increased its stake in the company by 19% to over 2 million shares worth $450.884 million.

On March 22, Lowe’s Companies, Inc. (NYSE:LOW) declared a quarterly dividend of $1.10, payable by May 8 to the shareholders of record on April 24. The stock’s dividend yield is 1.74% as of March 26.

Madison Investments made the following comment about Lowe’s Companies, Inc. (NYSE:LOW) in its Q3 2023 investor letter:

“The bottom five individual contributors were Dollar Tree, Fiserv, Analog Devices, Lowe’s Companies, Inc. (NYSE:LOW), and Alcon. Both Analog Devices and Lowe’s Companies saw end-market demand moderate (in semiconductors and home improvement products, respectively) relative to the strong levels over the last couple of years. Despite these near-term trends, we remain very confident in the long-term trends within both markets.”