Is the Home Improvement Company Lowe’s Stock a Buy Now?

Lowe’s is an American Home Improvement Company with its headquarters located in Mooresville, North Carolina, and has a chain of retail stores operated across the United States and Canada. The company’s stock is termed the Dividend King. This term is used for the stocks whose dividend has consistently increased without fail from the past many years and in the case of Lowe’s; it has been increasing its dividend for the last 50 years which is a notable point. The dividend not might be giving a very high-yield but the consistent increase has made it a stable stock and considerable enough for an investment.

Lowe’s Companies Inc. (NYSE: LOW)

  • 52 Week Range:  $60.00 – $180.67
  • Average Volume:  4,240,736
  • Market Capital:  $122.83B
  • Forward Dividend and Yield:  2.40 (1.45%)

It is well evident from the above data that the stock price has increased from $60.00 to $180.67 and in the past three years, the shares of the company have had a gain of as much as 85%.

Lowe’s Progress

The pandemic period did bring about a slowdown phase in the company’s sales but the firm had a good outcome for the fourth quarter. Lowe’s performance during the coronavirus pandemic came out to be better than that of its arch-rival Home Depot. The e-commerce industry had a massive growth in the pandemic phase and the online sector of Lowe’s also managed to grow during this time. The progress of the stock’s value mentioned above also adds to the plus points of Lowe’s and makes it’s a strong stock in the market.

How Suitable and Profitable is an Investment in Lowe’s Stock?

Lowe’s is undoubtedly a profitable stock and would not let its investors down in the case of profits. The only question that arises is the amount of profit the investors will procure from an investment in this company’s stock. The company is a consistently but slowly growing firm. This would bring about profits but not huge profits. Therefore, the investors cannot expect major profits coming on their way from an investment in this stock. The progress would be slow. We can see this even from the dividend yield of the company which is 1.45% even after having increased from the past 50 years.

The decision on the kind of investment suits the investors is entirely their own choice. If a slow-growing and profit-giving stock is a suitable preference for the shareholders, then they can go for investment in this firm without any doubt because the money would not at least go down. The profits would be slow but they would eventually increase with time. For the investors searching for fast-growing profits upon investment, Lowe’s stock might not be the best choice for them because fast profits are not expected from the company at present. Hence, Lowe’s is a profitable investment but it is not a fast progressing company.

About Travis Garlick 1821 Articles
Been writing about and trading stocks since 2013. Manage a group of micro-cap investors on Facebook with over 15,000 members. Turned $8,500 into 185k the first year I started trading stocks and haven't looked back.