When analyzing a stock's potential, several factors need a closer look, including the total return (price appreciation and dividends). Total return can offer insights about a company's prospects and long-term earnings growth potential.
Many people recognize Lowe's (LOW 1.24%) as a major home improvement retailer, but it's also built an impressive track record as a dividend payer. In fact, the company has raised dividends annually for more than half a century, making it a Dividend King.
Lowe's Companies (LOW -0.28%) is the world's second-largest home improvement chain, raking in $83.7 billion in trailing-12-month sales, which puts it behind Home Depot . In the past 50 years, the North Carolina-based company has generated a monster total return of 245,200%, generating massive wealth for early shareholders.
To some investors, Lowe's Companies (LOW -0.28%) stock can look like a desirable holding. Despite its challenges, it is the second-largest home improvement retailer, behind rival Home Depot, and many perceive it as one of the safer stock holdings.
Following its third-quarter earnings report, a slew of Wall Street analysts recently raised their price targets on Lowe's Companies (LOW 0.09%). Truist's Scot Ciccarelli raised his target to $310 while maintaining a buy rating on the stock.
Zacks.com users have recently been watching Lowe's (LOW) quite a bit. Thus, it is worth knowing the facts that could determine the stock's prospects.
Lowe's is a market leader in home improvement with competitive advantages like scale, private label brands, and strong vendor relationships, making it a buy. Despite a recent revenue decline, Lowe's has a history of consistent long-term growth, supported by geographic expansion and organic growth in products and services. Lowe's is a Dividend King with a 62-year streak of increases, supported by excellent dividend safety metrics and strong free cash flow.
Shares of Lowe's Companies Inc LOW were trading higher Thursday after the company reported upbeat third-quarter results on Tuesday.
Lowe's Companies NYSE: LOW price action pulled back from its October peak, providing a second-chance opportunity for investors. The opportunity is to add to positions or create new ones at a discounted price.
Lowe's benefits from long-term tailwinds: Aging housing stock, home price appreciation, and rising disposable income, positioning it well for future growth despite near-term challenges. Q3 earnings showed a decline in sales and comp sales, with DIY market weakness and storm-related sales impacting margins, but Pro sales and online growth were strong. Lowe's raised its full-year guidance but lowered operating margin expectations, and a challenging market caused a selloff.
The Investment Committee debate the retail sector and how to trade it.
The home improvement retailer is still facing a serious economic headwind.