Lowe's Earnings Preview: Can the Home Improvement Retailer Bounce Back?
Lowe's is set to report its fiscal second-quarter earnings on August 19. Analysts expect revenue growth of 9.3% and an earnings decline of 2%. The home improvement retailer has been struggling with soft demand, but its pivot towards the contractor supply space could pay off in the long term.
Lowe's shares are down by about 10.5% year to date, making them a relatively cheap valuation compared to Home Depot. If investors react negatively to the upcoming earnings release, the stock could become an even more attractive bargain.
The company's acquisitions, including Foundation Building Materials and Artisan Design Group, have increased its top line but led to less-stellar near-term bottom-line results. However, these moves are part of Lowe's strategy to focus on the contractor market, which could drive growth in the long term.