Lowe's (NYSE: LOW) will report its fiscal second-quarter earnings before the market opens on Aug. 19. Much like its chief rival, Home Depot, the home improvement and building-products retailer's business has been stuck of late as it contends with soft demand. While Lowe's reported better-than-expected results last quarter, management maintained a soft outlook, setting low expectations for the year.
Lowe's shares are down by about 10.5% year to date. Already trading at a cheap valuation compared to its main peer, the stock could become even more of a bargain if investors react negatively to the upcoming earnings release.
Missed Nvidia in 2009? This Rare Signal Is Flashing Again. In 2009, a "Double Down" signal flashed for a little-known chipmaker called Nvidia. For the first time in years, that same "Total Conviction" signal is flashing for a company 1/100th the size of Nvidia. Continue »
For the quarter that ended on Aug. 1, sell-side forecasts call for revenue of $26.2 billion and earnings of $4.24 per share. That would amount to year-over-year sales growth of 9.3% and a 2% decline in earnings.
Lowe's has made some large acquisitions since last year, including Foundation Building Materials and Artisan Design Group. While those purchases have increased its top line, sluggish same-store sales coupled with higher interest expense and lower margins have led to less-stellar near-term bottom-line results. That said, these acquisitions, part of the company's pivot toward a greater focus on the contractor market, could pay off in the long term.
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Lowe's shares are down by about 10.5% year to date. Already trading at a cheap valuation compared to its main peer, the stock could become even more of a bargain if investors react negatively to the upcoming earnings release.
Missed Nvidia in 2009? This Rare Signal Is Flashing Again. In 2009, a "Double Down" signal flashed for a little-known chipmaker called Nvidia. For the first time in years, that same "Total Conviction" signal is flashing for a company 1/100th the size of Nvidia. Continue »
For the quarter that ended on Aug. 1, sell-side forecasts call for revenue of $26.2 billion and earnings of $4.24 per share. That would amount to year-over-year sales growth of 9.3% and a 2% decline in earnings.
Lowe's has made some large acquisitions since last year, including Foundation Building Materials and Artisan Design Group. While those purchases have increased its top line, sluggish same-store sales coupled with higher interest expense and lower margins have led to less-stellar near-term bottom-line results. That said, these acquisitions, part of the company's pivot toward a greater focus on the contractor market, could pay off in the long term.
#signal
3 months ago
