Billionaire Bill Ackman’s Top 3 Stock Picks

1. Lowe’s Companies, Inc. (NYSE:LOW)

Pershing Square Capital Management’s Stake Value as of 9/30: $1,948,491,000

Percentage of Pershing Square Capital Management’s 13F Portfolio as of 9/30: 24.73%

Pershing Square Capital Management inched up its share count in Lowe’s Companies, Inc. (NYSE:LOW) by 2% in Q3 to end the period with a stake value of almost $1.95 billion, or almost a quarter of Bill Ackman’s Q3 13F portfolio. As a result, Lowe’s Companies, Inc. (NYSE:LOW) ranks #1 on our list of Billionaire Bill Ackman’s Top 6 Stock Picks. Given the Federal Reserve has raised interest rates substantially in 2022, housing demand has softened and growth for Lowe’s Companies, Inc. (NYSE:LOW) isn’t as strong as it was before. For Q3, for example, Lowe’s Companies, Inc. (NYSE:LOW) reported U.S. comparable sales of 3%. For FY22, the company sees comparable sales flat to down 1%. Nevertheless, Lowe’s Companies, Inc. (NYSE:LOW) still has long term growth potential.

Billionaire Bill Ackman commented on Lowe’s Companies, Inc. (NYSE:LOW) in an August investor letter,

Lowe’s is a high-quality business with significant long-term earnings growth potential underpinned by a superb management team that is successfully executing a multi-faceted business transformation…

While we expect that there will be some near-term volatility and continued moderation of DIY demand, growth remains strong for projects requiring professional installation (the “Pro” business) due to a substantial backlog of projects undertaken during COVID, which should support industry growth in the near-term. In addition, we believe the mediumterm growth outlook for the home improvement industry remains strong as demand is likely to normalize at a materially higher level as compared to the pre-COVID era. F

You can also take a look at Warren Buffett’s Top 10 Dividend Stock Picks and 15 Largest Hotel Chains in the US in 2022.

Follow Insider Monkey on Twitter