Cramer’s Morning Thoughts: 20 Stocks to Watch

14. Lowe’s Companies Inc. (NYSE:LOW)

Number of Hedge Fund Investors: 62

Oppenheimer recently upgraded Lowe’s Companies, Inc. (NYSE:LOW)’s to an “outperform” rating, citing optimism about the future of the home improvement sector. The analysts see “clearer skies ahead” for the industry, which signals potential growth for Lowe’s Companies, Inc. (NYSE:LOW). The latest Morning Thoughts post highlighted this upgrade as a positive sign for Lowe’s Companies, Inc. (NYSE:LOW), emphasizing that improved conditions in home improvement could benefit the company moving forward.

“Oppenheimer sees “clearer skies ahead for home improvement,” upgrading Lowe’s to an outperform buy.”

Lowe’s Companies, Inc. (NYSE:LOW) is a promising investment opportunity due to its strong financial results and the growing demand for home improvement. In its Q2 2024 earnings report, Lowe’s Companies, Inc. (NYSE:LOW) announced revenue of $24.5 billion, a 6% increase from the previous year, with a net income of $2.1 billion and same-store sales growth of 3.5%. This strong performance reflects consumers’ ongoing interest in home renovations and maintenance.

As more homeowners take on DIY projects and seek professional services, Lowe’s Companies, Inc. (NYSE:LOW)’s is well-positioned to benefit from this trend. Lowe’s Companies, Inc. (NYSE:LOW) is enhancing its online shopping experience by investing in e-commerce and improving its supply chain to ensure products are available and delivered on time. Recently, Lowe’s Companies, Inc. (NYSE:LOW)’s introduced new store formats and expanded its offerings in outdoor living and tool rentals to meet changing customer preferences.

Additionally, its focus on sustainability appeals to environmentally conscious shoppers. With its solid financial health and ability to adapt to market changes, Lowe’s Companies, Inc. (NYSE:LOW)’s is set for continued growth, making it an attractive choice for investors.

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.”