Should You Invest in Lowe’s Companies (LOW)?
Lowe #Lowe
Baron Funds, an asset management company, released its “Baron Real Estate Fund” second quarter 2022 investor letter. A copy of the same can be downloaded here. Baron Real Estate Fund (the “Fund”) declined 20.62% (Institutional Shares) in the second quarter of 2022, underperforming its primary benchmark, the MSCI USA IMI Extended Real Estate Index (the “MSCI Real Estate Index”), which declined 17.12%. The Fund underperformed the MSCI US REIT Index (the “REIT Index”), which declined 17.16%. In addition, you can check the top 5 holdings of the fund to know its best picks in 2022.
In its Q2 2022 investor letter, Baron Real Estate Fund mentioned Lowe’s Companies, Inc.(NYSE:LOW) and explained its insights for the company. Founded in 1946, Lowe’s Companies, Inc.(NYSE:LOW) is a Mooresville, North Carolina-based retail company with a $119.4 billion market capitalization. Lowe’s Companies, Inc.(NYSE:LOW) delivered a -25.57% return since the beginning of the year, while its 12-month returns are down by -6.43%. The stock closed at $192.39 per share on September 14, 2022.
Here is what Baron Real Estate Fund has to say about Lowe’s Companies, Inc.(NYSE:LOW) in its Q2 2022 investor letter:
“Lowe’s Companies, Inc. is the second largest home improvement center in the U.S. Its shares declined 33% in the first six months of 2022 and are currently valued at only 13.5 times estimated earnings per share versus a long-term average P/E multiple of approximately 18 times estimated earnings per share.”
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Our calculations show that Lowe’s Companies, Inc.(NYSE:LOW) fell short and didn’t make it on our list of the 30 Most Popular Stocks Among Hedge Funds. Lowe’s Companies, Inc.(NYSE:LOW) was in 53 hedge fund portfolios at the end of the second quarter of 2022, compared to 65 funds in the previous quarter. Lowe’s Companies, Inc.(NYSE:LOW) delivered a 7.47% return in the past 3 months.
In February 2022, we also shared another hedge fund’s views on Lowe’s Companies, Inc.(NYSE:LOW) in another article. You can find other investor letters from hedge funds and prominent investors on our hedge fund investor letters 2022 Q2 page.
Disclosure: None. This article is originally published at Insider Monkey.