Today I am recommending purchase of home improvement giant Lowe’s (LOW). The company has shown its resilience in the current difficult retail environment by selling to  professional contractors and improving labor management in the stores.

After falling from its 52-week high of $263 last December, the stock is a good value at less than 15X my conservative EPS estimate of $14 for the January 2024 fiscal year, which reflects significant improvement from management’s guidance of $13.10 to $13.60 for the current year as the contractor market and aggressive buybacks drive per-share progress.

A 2% yield helps in the meantime. I will have more on LOW in tomorrow’s monthly issue of Value Authority.

LOW is a buy below $215. My target is $260. If you are an Inner Circle subscriber following the Model Portfolio, roll 5% out of cash and establish a new Value position.