Lowe’s Companies: Echoing Home Depot’s Sentiment—Can It Capitalize on Pro Market Growth Without Sacrificing the Core DIY Experience? Unveiling the Impact, Outlook & Its Key Competitive & Strategic Levers !

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Lowe’s Q3 2024 results highlighted resilient execution despite macroeconomic pressures, with revenue of $20.17B and adjusted EPS of $2.89, both exceeding expectations. Pro sales delivered high single-digit growth, driven by investments in inventory depth, loyalty programs, and targeted Pro brands like Wallboard Tools. Online sales grew 6%, benefiting from digital enhancements like the "In-Store Mode," while the MyLowe’s Rewards program showed early promise in driving customer engagement and repeat purchases. However, DIY demand remains a headwind, pressured by affordability challenges in big-ticket categories like flooring and kitchens. Gross margin held steady at 33.7%, supported by disciplined cost management through Perpetual Productivity Improvement (PPI) initiatives, while adjusted SG&A deleveraged slightly due to storm-related costs. Lowe’s slightly raised its FY24 guidance, reflecting confidence in Pro backlogs and medium- to long-term tailwinds like aging housing stock and millennial household formation. Key growth drivers include Pro market penetration, disaster preparedness capabilities, and digital tools like “Shop by Job.” However, near-term DIY challenges and incremental margin pressures limit immediate upside. The strategic question is: Can Lowe’s sustain its Pro market momentum and leverage its structural advantages while reviving DIY demand and delivering long-term operating leverage amidst persistent macro pressures?

Table of Contents :
• Stock Rating & Target Price
• Investment Thesis
• Fundamental Models Used
• Company Description
• Corporate Timeline
• Key Metrics (KPI ) and Recently Reported Earnings Review
• Business Highlights, Strategic Announcements & Outlook
• Quarter-over-Quarter (Q-o-Q) and Year-over-Year (Y-o-Y) Growth Analysis
• Key Catalysts Driving Growth
• Historical Financial Statement Analysis & CAGR Trends
• Quarterly Key Financial Ratios and Performance Metrics
• Annual Financial Performance Analysis: Horizontal and Vertical Financial Analysis, Trends
• Financial Forecasts
• Annual Forecasts: Income Statement
• Annual Forecasts: Cash Flow Statements
• Net Debt Levels
• A Closer Look at DCF: Our Assumptions and Methodology
• Terminal Value Calculation
• Target Price Analysis
• Valuation Multiples
• Supplementary Valuation Analysis: Multiples Approach
• Scenario/Sensitivity Analysis – Base Case , Bull Case ,Bear Case
• Holistic Peer Review & Trading Comps: Financial Data, Operational Metrics, and Valuation Multiples
• Implied Price Per Share
• Ownership Activity/ Insider Trades
• Ownership Summary
• An analysis of ESG Risk Rating
• Key Professionals
• Key Board Members
• Key Risks Considerations
• Analyst Ratings
• Analyst Industry Views
• Disclosures

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