Where Will Lowe's Stock Be In 5 Years?

The Value Pendulum
Investing Group Leader

Summary

  • Lowe's turned in a mixed performance for Q1 2022; LOW's revenue was below expectations due to seasonal factors, but it delivered an earnings beat thanks to margin improvement driven by productivity initiatives.
  • LOW should continue to grow steadily while generating higher margins in five years' time, thanks to catalysts like Pro client base expansion, productivity initiatives, and growing tool rental revenue.
  • I deem Lowe's to be a Buy, considering both its valuations and five-year outlook.
  • Looking for more investing ideas like this one? Get them exclusively at Asia Value & Moat Stocks. Learn More »
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Elevator Pitch

I assign a Buy investment rating to Lowe's Companies' (NYSE:LOW) shares. LOW is forecasted to achieve margin improvement while maintaining decent revenue expansion in the next five years, and I think the growth of the Pro business and the

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This article was written by

The Value Pendulum
12.78K Followers

The Value Pendulum is an Asian equity market specialist with over a decade of experience on both the buy and sell sides.

He is the author of the investing group Asia Value & Moat Stocks, providing ideas for value investors seeking investment opportunities listed in Asia, with a particular focus on the Hong Kong market. He hunts for deep value balance sheet bargains and wide moat stocks and provides a range of watch lists with monthly updates within his investing group.

Analyst’s Disclosure:I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

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