Lowe's Companies, Inc. (LOW - Free Report) recently shared updates on fiscal 2021 and fiscal 2022 as well as announced a new share repurchase authorization. Management highlighted that LOW is focused on its Total Home Strategy, which targets productivity boost and enrichment of the integrated omni-channel shopping experience. These growth factors are likely to drive market share gains across both Lowe’s DIY and Pro categories.
Lowe’s shares have inched up nearly 2% during the trading hours on Dec 15. This currently Zacks Rank #1 (Strong Buy) stock has surged 36.7% in the past three months compared with the industry’s 12.1% rally. You can see the complete list of today’s Zacks #1 Rank stocks here.
Let’s delve deeper.
Outlook
For fiscal 2021, Lowe’s continues to project total sales of about $95 billion, implying growth of 6% from the last fiscal year’s reported figure. Also, comparable sales are forecast to grow nearly 33% on a two-year basis. The Zacks Consensus Estimate for fiscal 2021 sales is currently pegged at $95.7 billion.
The gross margin rate remains 33.10%, representing slight growth year over year. Operating margin is still anticipated to be 12.4% while ROIC of more than 33% is expected for fiscal 2021.
During the third quarter of fiscal 2021, Lowe’s bought back 13.7 million shares worth $2.9 billion and paid out dividends of $563 million. Management had earlier anticipated repurchasing shares worth $3 billion in the fiscal fourth quarter, indicating a total buyback of $12 billion for the current fiscal year.
For fiscal 2022, management estimates total sales between $94 billion and $97 billion, including the 53rd week. The said week is likely to raise sales nearly $1-$1.5 billion. Comparable sales are predicted in the range of a 3% decline to flat from the last fiscal year’s reported number. This might be due to sluggish home-improvement demand. The Zacks Consensus Estimate for fiscal 2022 sales is currently pegged at $97 billion.
For fiscal 2022, the gross margin rate is likely to remain flat from the year-ago reported number while the operating margin is expected in the band of 12.5-12.8%. Further, management projects an interest expense of $1-$1.1 billion and an effective income tax rate of around 25% for the said fiscal. As a result, earnings per share are envisioned in the band of $12.25-$13 for fiscal 2022. The consensus mark for fiscal 2022 earnings stands at $12.82. Management expects repurchase of shares worth $12 billion. Lowe’s anticipates ROIC of roughly 35% for the fiscal and capital expenditures of approximately $2 billion.
What Else?
Lowe’s remains committed to maximizing shareholder value through a discreet and efficient capital-allocation strategy. Given LOW’s cash flow generation capabilities and growth strategies, the company’s board authorized a new $13-billion share repurchase program.
The new buyback plan has no expiration date and further adds to the earlier program's balance, having $7.3 billion as of Dec 14, 2021. This brings Lowe’s current total share repurchase authorization of around $20 billion.
3 Picks You Can’t Miss out
Some other top-ranked stocks are Boot Barn Holdings (BOOT - Free Report) , Tractor Supply Company (TSCO - Free Report) and Target (TGT - Free Report) .
Boot Barn Holdings, a lifestyle retailer of western and work-related footwear, apparel and accessories, sports a Zacks Rank of 1 at present. The stock has jumped 187% in the year-to-date period.
The Zacks Consensus Estimate for Boot Barn Holdings’ current financial-year sales and earnings per share (EPS) suggests growth of 54.6% and 188%, respectively, from the year-ago period’s corresponding figures. BOOT has a trailing four-quarter earnings surprise of 35.3%, on average.
Tractor Supply Company, a rural lifestyle retailer in the United States, flaunts a Zacks Rank of 1, currently. TSCO has a trailing four-quarter earnings surprise of 22.8%, on average. Shares of TSCO have surged 59.6% year to date.
The Zacks Consensus Estimate for Tractor Supply Company’s current-year sales and EPS suggests growth of 19% and 23.9%, respectively, from the year-ago period’s corresponding readings. TSCO has an expected EPS growth rate of 10.2% for three-five years.
Target, a renowned omni-channel retailer, presently carries a Zacks Rank #2 (Buy). TGT has a trailing four-quarter earnings surprise of 19.7%, on average. The stock has rallied 36.1% in the year-to-date period.
The Zacks Consensus Estimate for Target’s current-year sales and EPS suggests growth of 13.9% and 40.1%, respectively, from the corresponding year-ago period’s levels. TGT has an expected EPS growth rate of 14.4% for three-five years.
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Lowe's Companies, Inc. (LOW - Free Report) recently shared updates on fiscal 2021 and fiscal 2022 as well as announced a new share repurchase authorization. Management highlighted that LOW is focused on its Total Home Strategy, which targets productivity boost and enrichment of the integrated omni-channel shopping experience. These growth factors are likely to drive market share gains across both Lowe’s DIY and Pro categories.
Lowe’s shares have inched up nearly 2% during the trading hours on Dec 15. This currently Zacks Rank #1 (Strong Buy) stock has surged 36.7% in the past three months compared with the industry’s 12.1% rally. You can see the complete list of today’s Zacks #1 Rank stocks here.
Let’s delve deeper.
Outlook
For fiscal 2021, Lowe’s continues to project total sales of about $95 billion, implying growth of 6% from the last fiscal year’s reported figure. Also, comparable sales are forecast to grow nearly 33% on a two-year basis. The Zacks Consensus Estimate for fiscal 2021 sales is currently pegged at $95.7 billion.
The gross margin rate remains 33.10%, representing slight growth year over year. Operating margin is still anticipated to be 12.4% while ROIC of more than 33% is expected for fiscal 2021.
During the third quarter of fiscal 2021, Lowe’s bought back 13.7 million shares worth $2.9 billion and paid out dividends of $563 million. Management had earlier anticipated repurchasing shares worth $3 billion in the fiscal fourth quarter, indicating a total buyback of $12 billion for the current fiscal year.
For fiscal 2022, management estimates total sales between $94 billion and $97 billion, including the 53rd week. The said week is likely to raise sales nearly $1-$1.5 billion. Comparable sales are predicted in the range of a 3% decline to flat from the last fiscal year’s reported number. This might be due to sluggish home-improvement demand. The Zacks Consensus Estimate for fiscal 2022 sales is currently pegged at $97 billion.
For fiscal 2022, the gross margin rate is likely to remain flat from the year-ago reported number while the operating margin is expected in the band of 12.5-12.8%. Further, management projects an interest expense of $1-$1.1 billion and an effective income tax rate of around 25% for the said fiscal. As a result, earnings per share are envisioned in the band of $12.25-$13 for fiscal 2022. The consensus mark for fiscal 2022 earnings stands at $12.82. Management expects repurchase of shares worth $12 billion. Lowe’s anticipates ROIC of roughly 35% for the fiscal and capital expenditures of approximately $2 billion.
What Else?
Lowe’s remains committed to maximizing shareholder value through a discreet and efficient capital-allocation strategy. Given LOW’s cash flow generation capabilities and growth strategies, the company’s board authorized a new $13-billion share repurchase program.
The new buyback plan has no expiration date and further adds to the earlier program's balance, having $7.3 billion as of Dec 14, 2021. This brings Lowe’s current total share repurchase authorization of around $20 billion.
3 Picks You Can’t Miss out
Some other top-ranked stocks are Boot Barn Holdings (BOOT - Free Report) , Tractor Supply Company (TSCO - Free Report) and Target (TGT - Free Report) .
Boot Barn Holdings, a lifestyle retailer of western and work-related footwear, apparel and accessories, sports a Zacks Rank of 1 at present. The stock has jumped 187% in the year-to-date period.
The Zacks Consensus Estimate for Boot Barn Holdings’ current financial-year sales and earnings per share (EPS) suggests growth of 54.6% and 188%, respectively, from the year-ago period’s corresponding figures. BOOT has a trailing four-quarter earnings surprise of 35.3%, on average.
Tractor Supply Company, a rural lifestyle retailer in the United States, flaunts a Zacks Rank of 1, currently. TSCO has a trailing four-quarter earnings surprise of 22.8%, on average. Shares of TSCO have surged 59.6% year to date.
The Zacks Consensus Estimate for Tractor Supply Company’s current-year sales and EPS suggests growth of 19% and 23.9%, respectively, from the year-ago period’s corresponding readings. TSCO has an expected EPS growth rate of 10.2% for three-five years.
Target, a renowned omni-channel retailer, presently carries a Zacks Rank #2 (Buy). TGT has a trailing four-quarter earnings surprise of 19.7%, on average. The stock has rallied 36.1% in the year-to-date period.
The Zacks Consensus Estimate for Target’s current-year sales and EPS suggests growth of 13.9% and 40.1%, respectively, from the corresponding year-ago period’s levels. TGT has an expected EPS growth rate of 14.4% for three-five years.
Infrastructure Stock Boom to Sweep America
A massive push to rebuild the crumbling U.S. infrastructure will soon be underway. It’s bipartisan, urgent, and inevitable. Trillions will be spent. Fortunes will be made.
The only question is “Will you get into the right stocks early when their growth potential is greatest?”
Zacks has released a Special Report to help you do just that, and today it’s free. Discover 5 special companies that look to gain the most from construction and repair to roads, bridges, and buildings, plus cargo hauling and energy transformation on an almost unimaginable scale.
Download FREE: How To Profit From Trillions On Spending For Infrastructure >>
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