Lowe’s (LOW) Cheers on Solid Home Improvement Products Demand

While the coronavirus pandemic was seen as a disruptor for several industries, few gained from the trends and alternated lifestyle practices brought about by the same. Home improvements markets are among them. Increased stay-at-home norms led to enhanced home renovation and maintenance projects. Making homes well equipped for work-from-home, remote schooling as well as entertainment needs have gained predominance. Well-known home improvements products retailer — Lowe’s Companies, Inc. LOW — benefited from such market scenario. Higher demand across most merchandising categories and strong online services is supporting the company’s top line. Let’s take a closer look.

Solid Trends in Home Improvements Market

During third-quarter fiscal 2020, Lowe’s comparable sales in the U.S. home improvement business rallied 30.4{ac967ad544075fb2f6bcea1234f8d91da186cac15e616dc329e302b7c7326b8c}. Home improvements business was fueled by broad-based growth across all merchandising departments, DIY (do-it-yourself) and pro customers. In fact, all 15 merchandising departments delivered positive comparable sales (comps), exceeding 15{ac967ad544075fb2f6bcea1234f8d91da186cac15e616dc329e302b7c7326b8c}. Growth in lumber was the strongest, backed by demand from pro and DIY customers. Notably, the company witnessed growth in areas such as home decor, lawn and garden as well as seasonal and outdoor living.

The company is undertaking prudent measures to widen assortments and thereby meet the increased demand conditions. Its Total

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Lowe’s Stock Undervalued Compared To Home Depot?

Both home improvement retailers in the U.S,  Lowe’s (NYSE: LOW) and Home Depot (NYSE: HD), are riding high on the Covid-19 wave as customers spent more of their disposable cash on home improvement projects rather than on vacations or dining out. But is Lowe’s stock appropriately priced compared to Home Depot stock? We believe that Lowe’s stock is very undervalued compared to HD stock, due to the notable mismatch in their current P/S multiples when compared with revenue growth and operating margins for the two companies over recent years. Lowe’s P/S multiple of 1.5x is substantially lower than the figure of 2.3x for Home Depot.

Lowe’s revenue growth over the last twelve months changed by 18.9{ac967ad544075fb2f6bcea1234f8d91da186cac15e616dc329e302b7c7326b8c}, which was higher than the figure of 13.2{ac967ad544075fb2f6bcea1234f8d91da186cac15e616dc329e302b7c7326b8c} for Home Depot. During the same period, the operating margin for Lowe’s changed by 2.7 percentage points, again better than the change of -0.3 percentage points for Home Depot. Our dashboard Lowe’s vs. Home Depot: LOW stock looks very undervalued compared to HD stock details the full picture based on revenue growth and operating margin – parts of which are summarized below.

1. Revenue Growth

While Home Depot still generates 1.5x more revenues than Lowe’s,

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Body found behind Lowe’s Home Improvement in Hattiesburg

Body found behind Lowe’s Home Improvement in Hattiesburg




No foul play or criminal element has been found at this time.


© Provided by Hattiesburg-Laurel WDAM-TV
No foul play or criminal element has been found at this time.

HATTIESBURG, Miss. (WDAM) – A body was discovered behind a home improvement store in Hattiesburg Saturday afternoon.

According to Hattiesburg Police Department spokesperson Ryan Moore, officers responded to the report of a deceased person near the wood line behind Lowe’s Home Improvement store on U.S. Highway 98 around 2 p.m.

No foul play or criminal element has been found at this time.

Copyright 2020 WDAM. All rights reserved.

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Lowe’s Stock Undervalued Compared To Home Depot?

Both home improvement retailers in the U.S, Lowe’s (NYSE: LOW) and Home Depot (NYSE: HD), are riding high on the Covid-19 wave as customers spent more of their disposable cash on home improvement projects rather than on vacations or dining out. But is Lowe’s stock appropriately priced compared to Home Depot stock? We believe that Lowe’s stock is very undervalued compared to HD stock, due to the notable mismatch in their current P/S multiples when compared with revenue growth and operating margins for the two companies over recent years. Lowe’s P/S multiple of 1.5x is substantially lower than the figure of 2.3x for Home Depot.

Lowe’s revenue growth over the last twelve months changed by 18.9{ac967ad544075fb2f6bcea1234f8d91da186cac15e616dc329e302b7c7326b8c}, which was higher than the figure of 13.2{ac967ad544075fb2f6bcea1234f8d91da186cac15e616dc329e302b7c7326b8c} for Home Depot. During the same period, the operating margin for Lowe’s changed by 2.7 percentage points, again better than the change of -0.3 percentage points for Home Depot. Our dashboard Lowe’s vs. Home Depot: LOW stock looks very undervalued compared to HD stock details the full picture based on revenue growth

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Home Depot and Lowe’s are Having Huge Years: Can the Growth Continue?

2020 has been a hugely successful year for home improvement retail giants Home Depot (NYSE:HD) and Lowe’s (NYSE:LOW). Both have seen revenue and net income grow by double digits as millions of homeowners have found themselves spending substantially more time in their homes during the coronavirus pandemic. But will the strong results continue? It’s less clear in the near term, especially with coronavirus vaccines now starting to be distributed. The same people who spent big on home improvement in 2020 might be more likely to spend their disposable income on travel and leisure in the future. 

On the Nov. 6 edition of “The Wrap” on Motley Fool Live, host Jason Hall makes the case that strong home sales often indicate good business prospects for home improvement. See his discussion with Motley Fool and Millionacres contributor Tyler Crowe editor Millionacres editor Deidre Woollard below. 

Transcript: 

Jason Hall: They say that home sales is a leading indicator for home improvement stores. We’ve seen Home Depot and Lowe’s have just crushed it, their comps are double-digit now. Just insane the comps that they’ve delivered. My question is we have all this high demand, is pent-up demand for new homes that’s happening.

How

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Lowe’s says home improvement ‘self care’ projects will fuel 2021 sales

  • Lowe’s remains optimistic about home improvement sales as 2021 gets underway.
  • The home-improvement giant recently surveyed its customers and found that nearly half have been spending money on home improvement projects that would’ve been spent elsewhere in past years.
  • Lowe’s Executive Vice President of Merchandising Bill Boltz said do-it-yourself projects help shoppers “reclaim feelings of normalcy and establish a sense of calm.”
  • Visit Business Insider’s homepage for more stories.

In a bid to feel normal in a time that is anything but, consumers continue to plunk down cash on home improvement projects. And Lowe’s doesn’t see that trend changing anytime soon.

Lowe’s saw sales soar in 2020, as consumers sought to spruce up their living spaces during the coronavirus pandemic. A recent survey from the company, featuring insights from 2,005 shoppers across the US, found that 46{ac967ad544075fb2f6bcea1234f8d91da186cac15e616dc329e302b7c7326b8c} of respondents spent money on home improvement that would’ve been spent elsewhere during a normal year. For its part, Lowe’s expanded its  e-commerce functionality and rolled out curbside and pick-up options to accommodate the demand.

Insider spoke with Lowe’s Executive Vice President of Merchandising Bill Boltz, who said that consumers are increasingly relying on home improvement as a method of “self care.” 

“As

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Forget Lowe’s, Home Depot Is a Better Home-Improvement Stock

The home-improvement industry has been surging as the coronavirus pandemic has forced so many people to spend more time at home. Not only are they noticing more projects that need to be done, but since the home now needs to be an office, a school, and an entertainment center, they need to upgrade or overhaul existing spaces. On top of all that, data shows that more families are deciding to move out of cities and into suburbs — which means out of apartments and into houses.

While the changes in consumer behavior during the pandemic were good for the home-improvement industry overall, some companies are better equipped to take advantage than others. Here is why Home Depot (NYSE:HD) is a better way to invest in this change than Lowe’s (NYSE:LOW)

A Home Depot storefron.

Image source: Home Depot.

Prospects 

The outlook is bright for both Home Depot and Lowe’s, as consumers’ spending on their homes continues to take a larger share of overall spending. And while vaccinations against the coronavirus are under way, it may be a long time until everything is back to normal. That will give home-improvement retailers several more quarters of substantial revenue increases.

Moreover, one of the lasting consequences

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