Lowe's Com Rg (LOW US)

Global Markets Comment

We believe that several factors such as home price appreciation, the low interest rate environment and an aging housing stock in the US should improve the home improvement sector in 2021. LOW currently holds only ~10% of the $900bn home improvement market and we believe that it can expand its market share given its scale and omni-channel investments through expansion of its Pro business and improved online penetration. Lowe’s also has ample flexibility with its cost structure through managing store expenses, advertising, incentive comp and investments.

Performance since inception*

Company Profile

Lowe’s Companies, Inc. is the second largest home improvement retailer, operating more than 1,850 stores in the US, Mexico and Canada. The company offers products and services for home improvement, home décor, home maintenance, home repair and remodeling and maintenance of commercial buildings. The company serves retail and commercial customers.

Price History 1 year

Investment Case

Lowe’s recently laid out a credible plan to deliver enhanced shareholder value on its Analyst Day and was upbeat on the outlook for the home improvement market that is on pace to grow mid-teens this year. Management believes that it has   the flexibility to drive operating margin improvements regardless of the economic environment while pursuing business expansion. The biggest players, Lowe’s and Home Depot currently have around 24% of market share, indicating that there is a long runway for market share gain as Lowe’s continue to expand its business

Price History 5 years

Risk in Investment Case

Investing in Lowe’s carries several risks including but not limited to, (1) a slowdown in the new home/real estate market, (2) diffi culty in further store expansion, (3) competition with retail competitors, (4) overall economic slowdown and the risk associated with investing in the general market.

Hong Kong & Singapore Private Clients

PLEASE READ THESE TERMS AND CONDITIONS CAREFULLY BEFORE PROCEEDING. BY UTILIZING THE WEBSITE AND PAGES THEREOF LOCATED AT WWW.UBS.COM ("WEBSITE"), YOU ACKNOWLEDGE THAT YOU HAVE READ THESE TERMS AS WELL AS THE GLOBAL TERMS OF USE (collectively "TERMS") AND THAT YOU AGREE TO BE BOUND BY THEM. IF YOU DO NOT AGREE TO ALL OF THE TERMS OF THIS AGREEMENT, YOU ARE NOT AN AUTHORIZED USER OF THESE SERVICES AND YOU SHOULD NOT USE THIS WEBSITE.

Investor status

  • Confirm that I meet the requirements to qualify as:
  • a "Professional Investor” in accordance with Section 1 of Part 1 of Schedule 1 of the Securities and Futures Ordinance (Cap 571 of the Law of Hong Kong) and as a “Private Banking Customer” as defined in the circular issued by the Hong Kong Monetary Authority on 12 June 2012; and/ or
  • an "accredited investor" or "institutional investor" as defined in the Securities and Futures Act (Chapter 289) of Singapore

Disclaimer

Content provided on “as is” and “as available” basis

  • Confirm my understanding that the materials, information or reports published, distributed or otherwise made available on the UBS Website
    (a) are published for information purposes only and are subject to change at any time without notice;
    (b) have been created without any regard to the specific investment objectives, financial situation or particular needs of any specific recipient and should not be construed as a solicitation, offer or recommendation or advice to buy or sell any securities, investment or other financial instruments, to effect any transactions or to conclude any legal act of any kind whatsoever.
Reset