Renovation Blues: Lowe's Faces Off Against Shifting Consumer Trends And Home Improvement Headwinds

Today's Best Finance Deals

• Telsey Advisory Group analyst Joseph Feldman reiterated an Outperform rating on Lowe's Companies, Inc. LOW, lowering the price target to $225 from $235. 
• The analyst remains cautious as the company will likely bear the brunt of general weakness in consumer spending on home improvement due to pressure from a worsened macroeconomic environment, a shift in spending toward services from goods, and homeowners engaging Pros in smaller projects than before.
• These factors were faced by Home Depot, Inc. HD during the last reported quarter, the analyst notes.
• A sluggish start to the spring selling season from unfavorable weather and lumber price deflation is also likely to weigh on the stock.
• Further, lackluster industry trends supporting home improvement spending have deteriorated, with declines in home sales and a slowdown in home price appreciation.
• Feldman thinks that near-term pressures related to a softer macro and industry backdrop should keep the stock range bound.
• The company will hold its first quarter 2023 earnings conference call on Tuesday, May 23.
• The analyst lowered our 1Q23 EPS estimate to $3.42 from $3.55, signaling a sales decline of 9.9% to $21.3 billion vs. $21.7 billion previously.
• FY23 EPS estimates are lowered to $13.35 vs. $13.88 previously. 
• Price Action: LOW shares are trading higher by 3.67% to $206.53 on the last check Wednesday.