Reasons for Lowe’s Companies (LOW)’s Competitive Advantage

Baron Funds, an investment management company, released its “Baron Real Estate Fund” first quarter 2023 investor letter. A copy of the same can be downloaded here. In the first quarter, the fund rose 7.07% (Institutional Shares) compared to a 2.39% return for the MSCI US REIT Index (the “REIT Index”) and a 4.73% return for the MSCI USA IMI Extended Real Estate Index (the “MSCI Real Estate Index”). The firm is optimistic about the prospects for the stock market, public real estate securities, and the fund. In addition, please check the fund’s top five holdings to know its best picks in 2023.

Baron Real Estate Fund highlighted stocks like Lowe’s Companies, Inc. (NYSE:LOW) in the first quarter 2023 investor letter. Headquartered in Mooresville, North Carolina, Lowe’s Companies, Inc. (NYSE:LOW) is a home improvement retailer. On June 27, 2023, Lowe’s Companies, Inc. (NYSE:LOW) stock closed at $223.56 per share. One-month return of Lowe’s Companies, Inc. (NYSE:LOW) was 11.15%, and its shares gained 26.95% of their value over the last 52 weeks. Lowe’s Companies, Inc. (NYSE:LOW) has a market capitalization of $131.002 billion.

Baron Real Estate Fund made the following comment about Lowe’s Companies, Inc. (NYSE:LOW) in its first quarter 2023 investor letter:

“Lowe’s Companies, Inc. (NYSE:LOW) is the second-largest home improvement center in the U.S. The company has several competitive advantages including scale, distribution efficiencies, interconnected retail through stores/internet, excellent management, and a strong balance sheet. The company’s P/E multiple is only 14 times versus its long-term average P/E multiple of 18 times.”

mihalec/Shutterstock.com

Lowe’s Companies, Inc. (NYSE:LOW) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 67 hedge fund portfolios held Lowe’s Companies, Inc. (NYSE:LOW) at the end of first quarter 2023 which was 68 in the previous quarter.

We discussed Lowe’s Companies, Inc. (NYSE:LOW) in another article and shared the list of stocks receiving price-target cut from analysts. In addition, please check out our hedge fund investor letters Q1 2023 page for more investor letters from hedge funds and other leading investors.

Suggested Articles:

• Top 20 Countries with the Highest Tobacco Consumption
• 25 Most Boring Jobs that Pay $100,000 or More
• Kanye West Stock Portfolio vs. Warren Buffett Stock Portfolio

Disclosure: None. This article is originally published at Insider Monkey.