5 Best Seasonal Stocks To Buy Now

2. Lowe’s Companies, Inc. (NYSE:LOW)

Number of Hedge Fund Holders: 61

Lowe’s Companies, Inc. (NYSE:LOW) is a North Carolina-based company that operates as a home improvement retailer in the United States and internationally. The company offers a range of products for construction, maintenance, repair, remodeling, and decorating. Summer is the most popular time of year to renovate, making Lowe’s Companies, Inc. (NYSE:LOW) one of the best seasonal stocks to invest in. For full-year 2022, Lowe’s Companies, Inc. (NYSE:LOW) expects total sales of $97 billion to $98 billion, versus a consensus of $96.89 billion. 

On December 7, Goldman Sachs analyst Kate McShane raised the price target on Lowe’s Companies, Inc. (NYSE:LOW) to $246 from $241 and maintained a Buy rating on the shares. The analyst stated that she is incrementally more positive about the company after its Analyst Day as the management believes that a weak market scenario is the least likely outcome for 2023.

According to Insider Monkey’s data, 61 hedge funds were bullish on Lowe’s Companies, Inc. (NYSE:LOW) at the end of Q3 2022, compared to 53 funds in the prior quarter. Bill Ackman’s Pershing Square is the leading position holder in the company, with 10.3 million shares worth about $2 billion. 

Baron Funds made the following comment about Lowe’s Companies, Inc. (NYSE:LOW) in its Q3 2022 investor letter:

“Lowe’s Companies, Inc. (NYSE:LOW) is the second-largest home improvement center in the U.S. The company has several competitive advantages including scale, distribution efficiencies, interconnected retail through stores/internet, excellent management, and a strong balance sheet. The company is valued at only 14 times estimated earnings per share versus its long-term average P/E multiple of approximately 18 times estimated earnings per share.

The shares of Lowe’s Companies, Inc. increased 7% in the most recent quarter following better-than-expected quarterly business results. Lowe’s is the second largest home improvement center in the U.S. The company has several competitive advantages including scale, distribution efficiencies, interconnected retail through stores/internet, excellent management, and a strong balance sheet. We believe the shares are attractively valued at only 14 times estimated earnings per share versus a long-term average P/E multiple of approximately 18 times estimated earnings per share.”