Should I Buy Lowe's (LOW)? Finance YouTuber Analysis

The YouTuber sees Lowe's as an interesting long-term investment, believing there's a better chance it will hit his fair value target compared to Home Depot. He would 'love to own' it at the right price, acknowledging it faced and recovered from COVID-related headwinds.

“Lowe's, I think there's a better chance that that hits the fair value. I haven't gotten quite to the ideal entry yet, but both of them are interesting companies... I would love to own at the right price.”

The YouTuber notes that Bill Ackman has completely sold out of Lowe's, which was previously his largest position. This move is attributed to a slowdown in home improvement spending post-pandemic, with projects becoming smaller. The implication is that the stock's multiple may be too high for a company no longer expected to be a significant growth driver.

“maybe the multiple is just a little bit too high for a company that isn't going to be a growth company over the next decade or so and acman has just simply gotten out alog altogether”

The YouTuber recommends Lowe's, emphasizing its long-term trend of significant share buybacks, which have drastically reduced its outstanding shares over decades. This strategy consistently adds value to shareholders, making it an attractive investment.

“Lowe's has been doing this for decades that's a 10-year chart this is a 20-year chart so if we go back to 2006 there were 1.6 billion shares outstanding now only 582 million”