Posted in lowe's home improvement

Why a Winning $6B Value Fund Likes UPS, Walmart, and Home Depot Stock

Text size

Jeff Kripke manages the the $6 billion Pioneer Fund.


Photograph by Tony Luong

Nearly a century before the idea of socially responsible investing took root, Pioneer Investments founder Phil Carret espoused the importance of investing in “good” companies, which at the time meant avoiding tobacco, alcohol, and gambling stocks. 

Today, sustainable investing has evolved to include a range of environmental, social, and governance factors—and the importance of investing with an ESG lens carries even greater weight in the digital age. “Companies spend billions of dollars building their brands, and all of that can go away when bad news goes viral,” says Jeff Kripke, the lead manager of the $6 billion

Pioneer Fund

(ticker: PIODX).

Kripke, 53, took the helm of Pioneer’s 92-year-old flagship portfolio in 2015 and updated its investment approach—reducing the number of holdings by more than half, to a recent 45, and making ESG factors a

Read More
Continue Reading Why a Winning $6B Value Fund Likes UPS, Walmart, and Home Depot Stock
Posted in lowe's home improvement

Can Home Depot and Lowe’s Stock Continue Rallying?

Text size

The Home Depot in Marina Del Rey, California


CHRIS DELMAS/AFP/Getty Images


Home Depot

and

Lowe’s

both fell around 2% on Friday, following downgrades from

Oppenheimer,

which worries that the stocks’ rallies have largely run their courses.

Analyst Brian Nagel cut his rating on Home Depot (ticker: HD) and Lowe’s (LOW) to Perform from Outperform, and lowered his price targets to $305 from $320, and to $180 from $185, respectively. While he still likes the long-term outlook for the stocks, he worries that the recent gains have made them pricey, while comparable sales will enviably slow from their pandemic highs.

Nagel is concerned that the “market is becoming too lax toward chances of a post-Covid-19 sales growth downshift at Home Depot/Lowe’s and potential impact on shares,” especially as the stocks, up about 26% and 34% year to date, are trading above their pre-pandemic peaks.

Of course, no one

Read More
Continue Reading Can Home Depot and Lowe’s Stock Continue Rallying?
Posted in home improvement loans

Buy Zillow Stock, Analysts Say, Because the Home-Flipping Market Might Be Undervalued

Text size

Jefferies analyst Brent Thill advised investors to be “opportunistic on a pullback in the shares” of Zillow.


Chris Goodney/Bloomberg


Zillow

shares hit a record high Thursday morning as a trio of analysts lifted their price targets for the online real-estate firm, amid a booming housing market in many parts of the country. In particular, they are bullish on the company’s increasing focus on buying, repairing and reselling houses—the so-called iBuyer market.

That market has attracted new attention after Zillow rival Opendoor announced plans to go public via a reverse merger into a SPAC, or special purpose acquisition company. The terms of the deal have spurred analysts and investors to reassess their views on Zillow’s growing role in that market—and they see an expanding business that might be undervalued.

Truist analyst Naved Khan repeated his Buy rating on Zillow shares (ticker: Z), upping his price target on the stock

Read More
Continue Reading Buy Zillow Stock, Analysts Say, Because the Home-Flipping Market Might Be Undervalued
Posted in lowe's home improvement

Will a Housing Market Crash Affect Home Depot Stock?

Will the housing market crash again? Maybe. Many aspects of the economy are cyclical, and housing prices do occasionally fall. Is a housing crash imminent? That’s harder to answer.

Some have sounded the alarm on housing for good reason. Consider the famous Case-Shiller Home Price Index, an inflation-adjusted metric created by Standard & Poor’s tracking housing prices. The index’s value was 100 back in the year 2000 and had been close to 100 when applying the index’s criteria backward to the 20th century. But since 2000, it has risen above 180 on two occasions. The first time preceded the housing crash of the Great Recession.

The second time the Case-Shiller index exceeded 180 is right now. In reality, it passed the mark way back in 2016, and it’s currently around 215. So no need to panic: Crossing 180 doesn’t immediately flip a housing-crash switch. It just shows housing prices have

Read More
Continue Reading Will a Housing Market Crash Affect Home Depot Stock?
Posted in lowe's home improvement

Forget Coca-Cola, Home Depot Is a Better Dividend Stock

Finding a good dividend involves more than just screening for high yields and long track records of annual payout raises. Many blue chip businesses would show up in that search, but only a few of these stocks will end up generating the type of market-thumping returns that income investors are reaching for.

That fact shines through when stacking up two Dow giants, Coca-Cola (NYSE:KO) and Home Depot (NYSE:HD). While the beverage titan has plenty of attractive investment qualities, Home Depot looks like the better dividend stock right now.

A couple shopping for appliances.

Image source: Getty Images.

More ammunition

Sure, Coca-Cola pays a higher yield today, at over 3% compared with Home Depot’s 2%. But that gap is mainly due to investors’ judgments about the two companies diverging growth outlooks. Consumers are more focused on home improvements thanks to pandemic-related changes to shopping and work habits. These shifts have moved against Coke by severely

Read More
Continue Reading Forget Coca-Cola, Home Depot Is a Better Dividend Stock
Posted in home improvement loans

More PPP loan questions after companies paid dividends, bought their own stock

Under the Small Business Administration rules, a PPP loan could be used only to meet payroll and pay mortgage interest, leases or utility bills. PPP loan recipients weren’t prohibited from paying investors with other funds, as long as the PPP funds were kept separate.

Still, some advocacy groups believe companies that had enough cash on hand to pay millions in dividends and stock purchases were unlikely to qualify for the PPP program, which was designed to assist troubled companies in keeping employees on the payroll during weeks when they were unable to do business because of pandemic-related lockdowns.

“The Trump administration wrote the PPP rules and sent billions of dollars to the well-resourced and well-connected rather than actual small businesses struggling during this public health and economic crisis,” said Kyle Herrig, president of an advocacy group called Accountable.US. “The fact that there was little transparency or accountability under this program

Read More
Continue Reading More PPP loan questions after companies paid dividends, bought their own stock
Posted in home repair

Lowe’s Stock Can Keep Rallying Because People Will Be Spending More Time at Home for Longer

Text size

Lowe’s shares have rallied as the pandemic has spurred people to spend more money fixing up their homes.


Justin Sullivan/Getty Images


Lowe’s

stock has jumped some 35% in 2020, as demand booms amid the Covid-19 pandemic. Loop Capital argues the shares could see another 20% gain, as consumers continue to pour money into their homes.

Analyst Laura Champine reiterated a Buy rating on Lowe’s (ticker: LOW) shares Wednesday, while raising her price target to $195 from $180.

She is increasingly confident that the company will continue to see sales boosted by the crisis, as people realize that they’ll likely be spending more time at home for longer, and need that space to serve more needs than it used to.

Indeed, as Barron’s has reported, the majority of the nation’s public school students were set to start the academic year remotely, while employers warm up to the idea of

Read More
Continue Reading Lowe’s Stock Can Keep Rallying Because People Will Be Spending More Time at Home for Longer
Posted in home improvement loans

KB Home (KBH) Q3 Earnings Beat, Margins Rise, Stock Slides

KB Home’s KBH stock slips 1.5% in the after-hours trading session on Sep 22, after it reported third-quarter fiscal 2020 (ended Aug 31, 2020) results. Although both earnings and revenues topped the respective Zacks Consensus Estimate on solid housing gross margin, the company expects its ending community count to remain relatively flat sequentially for the next two quarters.

Earnings & Revenue Discussion

The company reported quarterly earnings of 83 cents per share, which surpassed the consensus estimate of 50 cents by 66%. Also, the metric grew 13.7% from the year-ago figure of 73 cents per share owing to improvement in housing gross margin.

KB Home Price, Consensus and EPS Surprise

KB Home Price, Consensus and EPS Surprise

KB Home price-consensus-eps-surprise-chart | KB Home Quote

Total revenues of $999 million topped the consensus mark of $896 million by 11.6% but fell 13.9% on year-over-year basis due to COVID-19 impacts.

Segment Details

Homebuilding: For the quarter under

Read More
Continue Reading KB Home (KBH) Q3 Earnings Beat, Margins Rise, Stock Slides
Posted in improvements

Business News | Stock and Share Market News


By

Read More
Continue Reading Business News | Stock and Share Market News
Posted in home

Why Albertsons Is a Buy: More Meals at Home and the Stock Is Cheap

With Americans eating more meals at home, supermarkets are among the few traditional retailers to thrive, and

Albertsons

Cos., the nation’s fourth-largest grocer, is no exception.

Since the pandemic began in March, the owner of the Safeway and Acme supermarket chains has had sales growth of more than 20% and ample profits. Its stock is a different matter. The company went public in late June at $16 a share, and the stock has since fallen to around $13.

Now is the time to bag these marked-down shares. Albertsons (ticker: ACI) trades at a discount to virtually every company in the grocery business, including dollar stores like

Dollar General

(DG) and the largest food vendor,

Walmart

(WMT).

Albertsons also has an improving outlook and a dynamic CEO in Vivek Sankaran, who joined in 2019 from

PepsiCo

(PEP), where he headed the North American food business.

“We’re undervalued relative to our cash

Read More
Continue Reading Why Albertsons Is a Buy: More Meals at Home and the Stock Is Cheap