For most investors, how much a stock's price changes over time is important. This factor can impact your investment portfolio as well as help you compare investment results across sectors and industries.
Another factor that can influence investors is FOMO, or the fear of missing out, especially with tech giants and popular consumer-facing stocks.
What if you'd invested in Lowe's (LOW) ten years ago? It may not have been easy to hold on to LOW for all that time, but if you did, how much would your investment be worth today?
Lowe's' Business In-Depth
With that in mind, let's take a look at Lowe's' main business drivers.
Lowe’s Companies, Inc. has evolved as one of the world’s leading home improvement retailer, offering services to homeowners, renters and commercial business customers. The company has been enhancing experience of its pro customers by upgrading pro-focused brands and revamping pro-service business website, LowesForPros.com.
Incorporated in 1952 and based in Mooresville, NC, Lowe’s has its operations primarily in the U.S. and Canada. The company offers services to homeowners, renters and commercial business customers. Homeowners and renters principally include do-it-yourself (DIY) customers and do-it-for-me (DIFM) customers who utilize the company’s installed sales programs. Commercial business customers consist of those who work in the construction, repair/remodel, commercial and residential property management, and business maintenance professions.
Lowe’s offers a wide range of products and services for home decoration, maintenance, repair, remodeling and property maintenance. The company provides a line of home improvement products in diverse categories, such as appliances, lumber, paint, flooring, building materials, millwork, lawn and landscape products, fashion plumbing, hardware, lighting, tools, seasonal living, rough plumbing, outdoor power equipment, cabinets and countertops, nursery, rough electrical, home environment, home organization, and windows and walls.
The company’s home improvement store stocks about 34,000 items, a number of which are available through the Special Order Sales system, and comprises a varied collection of branded merchandise such as Whirlpool, Stainmaster, Valspar, Pella and many more. The company also trades in brands that are exclusive to Lowe’s, including Aquasource, Garden Treasures, Harbor Breeze, Kobalt, Reliabilt, Top-Choice and Utilitech.
Lowe's offers products through retail stores as well as online (Lowes.com). As of Oct 28, 2022, Lowe’s operated 1,969 home-improvement and hardware stores across the United States and Canada. LOW serviced nearly 212 dealer-owned stores.
Putting together a successful investment portfolio takes a combination of research, patience, and a little bit of risk. For Lowe's, if you bought shares a decade ago, you're likely feeling really good about your investment today.
A $1000 investment made in December 2012 would be worth $5,952.90, or a 495.29% gain, as of December 5, 2022, according to our calculations. Investors should note that this return excludes dividends but includes price increases.
The S&P 500 rose 187.51% and the price of gold increased 1.91% over the same time frame in comparison.
Looking ahead, analysts are expecting more upside for LOW.
Shares of Lowe’s have outpaced the industry in the past three months. The company remains well-positioned to capitalize on demand for the home improvement market, backed by investments in technology, merchandise category and strength in Pro business. Its posted sturdy earnings results for third-quarter fiscal 2022 wherein the top and the bottom line beat the Zacks Consensus Estimate and grew year over year. Results benefited from higher comparable sales (comps) and Pro sales as well as improved DIY sales trends. LOW witnessed a substantial improvement in its adjusted operating margin on disciplined execution and cost management. Management is committed to enhancing the Pro offerings, expanding Lowe’s market share and driving its operating margin. It expects revenues of $97-98 billion (including the 53rd week) for fiscal 2022.
Shares have gained 17.95% over the past four weeks and there have been 12 higher earnings estimate revisions for fiscal 2023 compared to none lower. The consensus estimate has moved up as well.
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