Home improvement retail giant Lowe's (LOW) has delivered better-than-expected earnings in its last reported quarter thanks to robust demand for its installation and professional services. Given that it’s likely still the beginning of the home improvement boom because the housing market remains hot, is the stock a solid addition to one’s portfolio now? Let’s discuss.Home improvement retailer Lowe's Companies, Inc. (NYSE:LOW), which is headquartered in Mooresville, N.C., operates a chain of retail stores that provide construction, maintenance, repair, and remodeling products in the United States and internationally. Shares of LOW have advanced 3.2% in price over the past five days and 28.5% year-to-date thanks to the company’s solid second-quarter earnings result, which beat the Street’s estimates.
The company’s U.S. comparable sales grew 32% on a two-year basis, while its sales on Lowes.com increased 7% year-over-year. Also, following the strong financial results, management has lifted LOW’s full-year outlook. The company expects revenue of roughly $92 billion, representing comparable sales growth of approximately 30% on a two-year basis.
A significant improvement in demand for building equipment and materials from professional contractors because the rapid rollout of COVID-19 vaccines facilitated the resumption of projects that were put on hold last year should enable LOW to maintain a robust financial performance in the coming quarters.