5 Stocks Hedge Funds Are Talking About Right Now

In this article, we will be exploring ten stocks that hedge funds are talking about right now. You can read the first section of the article here. The discussion of the final five stocks is given below:

5. Lowe’s Companies, Inc. (NYSE:LOW)

2024 Performance: 2.6%

Number of Hedge Fund Holdings:68

Established in 1921, Lowe’s Companies, Inc. (NYSE:LOW) is US US-based home improvement retailer. The company focuses on providing safe and affordable homes, employing about 300,000 people and operating over 1700 retail stores. The company reported a year-over-year growth rate of -11.01% in 2023; however, growth is expected to be -7.00% this year and 10.4% the next year. Reduced sales was the reason for last year’s drop. According to Yahoo Finance, the PE ratio stands at 17.44% indicating an attractive valuation.  The company’s strong business, appealing value, and strong growth catalysts make it a compelling investment.

Aristotle Capital’s Value Equity Strategy stated the following regarding Lowe’s Companies, Inc. (NYSE:LOW) in its first quarter 2024 investor letter:

“During the quarter, we sold our positions in Phillips 66 and Sysco and invested in two new positions: Lowe’s Companies, Inc. (NYSE:LOW) and TotalEnergies.

Based in North Carolina, and with a history dating back to 1921, Lowe’s Companies is the world’s second-largest home improvement retailer (after Home Depot). The company operates more than 1,700 stores in the United States that offer a wide variety of products to enhance a home, from plants for the garden and house décor to hardware and appliances. Often located in suburban areas, Lowe’s stores primarily serve retail “do-it-yourself” customers (~75% of revenue) and sell products that are used for home maintenance and repair (over 60% of revenue). This contrasts with Home Depot, whose stores have a higher presence in metropolitan areas and cater more to professional customers.

We had previously been investors in Home Depot. Over much of the past decade Home Depot had, in our opinion, executed better than Lowe’s—expanding its presence with large professional customers and increasing its store productivity. However, with Lowe’s hiring of former Home Depot executive Marvin Ellison in 2018, we believe Lowe’s has started the process of closing the gap to better compete with its nearest rival…” (Click here to read the full text)