Back to top

Image: Bigstock

Here's How Much You'd Have If You Invested $1000 in Lowe's a Decade Ago

Read MoreHide Full Article

How much a stock's price changes over time is a significant driver for most investors. Not only can price performance impact your portfolio, but it can help you compare investment results across sectors and industries as well.

Another thing that can drive investing is the fear of missing out, or FOMO. This particularly applies to tech giants and popular consumer-facing stocks.

What if you'd invested in Lowe's (LOW - Free Report) 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 Jul 29, 2022, Lowe’s operated 1,969 home-improvement and hardware stores across the United States and Canada. LOW serviced nearly 212 dealer-owned stores.

Bottom Line

While anyone can invest, building a lucrative investment portfolio takes research, patience, and a little bit of risk. If you had invested in Lowe's ten years ago, you're probably feeling pretty good about your investment today.

According to our calculations, a $1000 investment made in November 2012 would be worth $6,650.74, or a gain of 565.07%, as of November 16, 2022, and this return excludes dividends but includes price increases.

Compare this to the S&P 500's rally of 194.96% and gold's return of -0.23% over the same time frame.

Going forward, 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. Lowe’s posted sturdy earnings results for second-quarter fiscal 2021 wherein the bottom line beat the Zacks Consensus Estimate and grew year over year. Earnings performance benefited from strong operating margin, stemming from gains from the Total Home strategy and the execution of the Perpetual Productivity Improvement initiative. Focus on driving productivity boosted margins. The Total Home strategy is resonating well with Pro and DIY customers for a while. Management is committed to enhancing the Pro offerings, expanding the company’s market share and driving its operating margin.

The stock has jumped 8.10% over the past four weeks. Additionally, no earnings estimate has gone lower in the past two months, compared to 3 higher, for fiscal 2022; the consensus estimate has moved up as well.

See More Zacks Research for These Tickers


Normally $25 each - click below to receive one report FREE:


Lowe's Companies, Inc. (LOW) - free report >>

Published in