Do you think Lowe's is a good buy or is it a little too expensive now?

Question

I'm interested in buying Lowe's stock. It seems like a good value company and has good ROE with low debt. Also, Buffett is buying Lowe's so it must be a decent stock.
The only problem with Lowe's is that the housing market is dead cold right now, the retail sector is underperforming and the US economy is expected to slow down and maybe even hit another recession. But Lowe's stock keeps going up. It's gone up $1.20 in a week. It doesn't make sense to me. I don't understand how a home improvement retailer in a time like this can be going up in price. With all the bad news about the housing market, retail, and the economy, it seems like it should be losing value.

What do you think? Is Lowe's a good buy right now? As of today, 12/05, it's priced at 31.24 with a P/E of 15.43.

Answer 1

Lowe's has plenty of cash to wait out a downturn. But, IMPORTANT, the primary business of Lowe's is not new construction but renovation and repairs. If people are keeping their houses because the good prices are gone, then there is paint and sprucing up that people do to reinforce good prices.

CNN.com/Money shows 6 analysts saying Hold, but 9 saying Buy. If you have a solid company with solid numbers and most of the prognosticators are saying buy, which side of that tide are you wanting to be on? If you bought you won't be badly hurt if you are wrong.

Answer 2

This is what I call a suckers rally. Stocks are manipulated(thats right) because its practically impossible to prove. And remember when the Dow goes down 90% of stocks follow. And there's no question werein the start of a bear market. Just look at GDP projections at the OECD website. Durable goods orders and declines in auto sales and housing and Walmart. I mean its blatantly obvious. Kirkorian just sold and Buffett lost on the American dollar. For Petes sake buy small cap gold

Answer 3

YES, and I will tell you why. Every home owner is trying to find ways to raise the value of his or her home. Lowes is a solid company, and so is Home Deoot. When a company "dances at the bottom" is when you should buy. The housing sector WILL go back up, and so will Lowes. Keep an eye on it if you wish, but its not going to hurt if you buy a couple of shares. Good luck
Dean

Answer 4

Lowe's is not a good buy right now. The housing market is too unsettled. It is the highest it has been is the last twenty weeks. I checked it on my Wizetrade program and I would not buy it. Try an alternative energy stock. With the Dems in control, alternative energy should steadily climb. Zolt and eslr are two.

Answer 5

1 week does not even a quarter's return make.
I bought a company Paul Allen owned 96% of the stock in and almost lost my proverbial undershirt.
Lowes is most likely rising because when people cannot buy in the housing market, then they fix up what they have.
The PE certainly looks good. I think you might want to try out the excellent free services of http://www.vectorvest.com/ as well.

Answer 6

Buying single stocks is the exact same thing as going to Vegas. You can win big, or you can lose it all. You have absolutely no control over your destiny.

Buy mutual funds, which have averaged 12% returns for 70 years. It's the closest thing to a guaranteed return you can invest in. But if you want to get rich on one deal, pick a color and let it ride!

Answer 7

kroger