87.39 -1.38 (-1.55%)
After hours: 4:26PM EDT
|Bid||88.82 x 800|
|Ask||88.87 x 800|
|Day's range||84.00 - 89.37|
|52-week range||60.00 - 126.73|
|Beta (5Y monthly)||1.30|
|PE ratio (TTM)||16.17|
|Earnings date||19 May 2020|
|Forward dividend & yield||2.20 (2.68%)|
|Ex-dividend date||20 Apr 2020|
|1y target est||118.42|
Yahoo Finance talks with retired Home Depot Chairman and CEO Frank Blake about how leaders should be leading amidst the coronavirus pandemic.
It's been a pretty great week for Lowe's Companies, Inc. (NYSE:LOW) shareholders, with its shares surging 20% to...
(Bloomberg) -- As central banks around the world reignite quantitative easing programs or adopt them for the first time, Japan’s key focus of controlling bond yields rather than a quota of purchases is being explored.When the Reserve Bank of Australia broke the emergency glass on March 19, it set a target for the yield on three-year Australian government bonds of around 0.25%, in line with its benchmark policy rate that was lowered to this level.The advantage of targeting a yield rather than promising to buy a specific amount of bonds is the greater flexibility it allows monetary authorities. If bond markets behave and yields fall into line with the targets, the program can be easier to manage with fewer purchases needed.The BOJ adopted that approach in late 2016 -- it targets a 10-year yield around zero -- after its earlier QE program appeared on an unsustainable path given the huge volume of bond buying and resulting market distortions that were involved. Federal Reserve Governor Lael Brainard has floated the prospect for yield curve control in the U.S. recently too.“The surprise in the RBA package was that it leapt past the Fed and other central banks to take a leaf out of the Bank of Japan’s book,” said Paul Sheard, a senior fellow at Harvard University’s Kennedy School who had a front row seat during Japan’s multi-decade struggle to battle stagnation and deflation as an economist in Tokyo.The key lesson for Australia is that fiscal policy needs to be a big part of the picture, if not taking the lead, he said.Fiscal-Monetary CoordinationThat’s where lower yields come in, by making it easier for governments to fund their shortfalls -- a factor that has helped Japanese Prime Minister Shinzo Abe cheaply fund years of deficits even while carrying the world’s largest debt-to-GDP ratio.Australia’s government delivered two stimulus packages within 10 days totaling more than A$80 billion ($48 billion). Such fiscal-monetary coordination is designed to cushion the economic blow from the coronavirus.To complement his version of yield curve control, RBA Governor Philip Lowe adopted forward guidance, saying he expects to keep the cash rate at its current level for some years. He also announced a funding facility for the banking system to support lending to small- and medium-sized businesses.What Bloomberg’s Economists Say“The RBA’s approach has shown it has taken time to learn from the Bank of Japan and other central banks’ unconventional policy approaches. While that’s informed the design of Australian QE, the RBA would also be acutely aware that the ability to unwind QE programs and escape the effective lower bound relies on fiscal policy makers choosing economics over politics and stepping up to revive their economies.”James McIntyre, economistThe Fed’s Brainard, in a Feb. 21 speech, noted the advantages of yield curve control when complemented by forward guidance.“One important benefit is that this approach would smoothly move to capping interest rates on the short-to-medium segment of the yield curve once the policy rate moves to the lower bound and avoid the risk of delays or uncertainty that could be associated with asset purchases regarding the scale and timeframe,” she said.Fed BazookaThe Fed on Monday unveiled a sweeping series of measures -- but no YCC. It will buy unlimited amounts of Treasury bonds and mortgage-backed securities to keep borrowing costs at rock-bottom levels and to help ensure markets function properly. It also set up programs to ensure credit flows to firms and state and local governments.Adam Posen, who heads the Peterson Institute for International Economics in Washington and was a crisis-era U.K. policy maker, reckons that while a Fed move to yield curve control isn’t imminent, it is likely to come at some point. He argues the policy enables easy fiscal policy, but the central bank preserves independence because it isn’t judging or responding to a government’s programs.“Monetary policy is going to shift from keeping credit markets open to keeping rates low but positive,” Posen says. “They can all learn from the Bank of Japan’s yield curve control. When governments are doing repeated fiscal expansion, this is the least politically fraught and most transparent way to accommodate fiscal policy.”Australia escaped the financial crisis of 2008 without a recession or the RBA needing to adopt what was then known as “unorthodox” monetary policies. That meant it was able to observe the experience of other central banks including the Fed, BOJ, Bank of England and European Central Bank. Lowe, for instance, has ruled out negative interest rates, all too aware of their adverse side effects on banks and asset managers.Policy makers Down Under expect that they will need to buy bonds to help achieve the target yield level and keep markets functioning smoothly but, the announcement effect and market credibility will assist the bank. Another plus: Australia’s stock of outstanding government debt isn’t nearly as large as some global peers because its budget deficits haven’t been as deep, meaning they can probably manipulate yields with fewer purchases.Such factors may also make it easier for Lowe and his team to eventually exit unconventional policy, once the economy perks up.Lowe’s view that Australia would be able to stick to conventional rates policy this year was shattered by the spread of coronavirus, which has some economists predicting unemployment will soar to 11% and the economy slump into recession for the first time since 1991.There are some key differences between Australia and Japan’s policies too. The latter came to yield curve control in 2016 after many years of quantitative easing and an entrenched deflationary mindset that Governor Haruhiko Kuroda continues to wrestle with today.Japan also has a short-term policy balance rate of minus 10 basis points, so targeting the 10-year yield of around zero is meant to give a slightly positive slope to the curve. Lowe wants a flat curve over three years.David Plank, head of Australian economics at Australia & New Zealand Banking Group Ltd., says the key similarity is likely to be the “Hotel California” experience that has confronted most central banks that embark on non-conventional monetary policy.“Namely, that once you’ve started you can never leave,” he said.(Updates with comment from Bloomberg economist in 10th paragraph.)For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
(Bloomberg) -- Bill Ackman said he has invested a portion of his personal wealth to help manufacture antibody testing kits produced by Covaxx, a newly formed subsidiary of closely-held United Biomedical Inc., amid the outbreak of the coronavirus.Ackman has repeatedly called for a complete shutdown of the U.S. for 30-days to help combat the spread of the Covid-19 virus. He has also called for antibody testing, like the one Covaxx develops, across the country to determine who has been contracted the virus.“The key to a successful reopening beyond the maintenance of social distancing, hand washing, mask use and other related practices is a broad-based testing regime and tracing program,” Ackman said in a letter on Wednesday to investors in his hedge fund, Pershing Square Capital Management.“This will enable the inevitable viral breakouts to be identified early and minimized with localized quarantines, reducing the impact on the overall U.S. economy and the need for future shutdowns,” he said.HedgesAckman made a roughly 100 times return on hedges he had put in place to protect Pershing Squares’ $6.6 billion portfolio against the impact of the virus, according to the letter.His firm paid roughly $27 million for the hedges, which were made in the form of purchases of credit protection on investment-grade and high-yield credit indices. The hedges generated $2.6 billion in proceeds by the time he exited them on March 23.He said he has since redeployed the capital by investing further in his portfolio companies, including Lowe’s Cos., Agilent Technologies Inc., Hilton Worldwide Holdings Inc., Restaurant Brands International Inc., and Warren Buffett’s Berkshire Hathaway Inc. He also reinvested in Starbucks Corp.“The proceeds of the hedges have enabled us to become a substantially larger shareholder of a number of our portfolio companies, and to add some new investments, all at deeply discounted prices,” he said.Ackman said in an interview on CNBC on March 18 that “hell is coming” if drastic measures were not taken to combat the virus. A week later, he said in an interview with Bloomberg TV he had made a $2.5 billion “recovery bet” on a bounceback, after gaining confidence “that the president and his team are heading in the right direction.”Covaxx has already deployed over 100,000 Covid-19 tests in China, and is currently testing in San Miguel County, Colorado. The company believes it can scale the tests to hundreds of millions in “relative short order,” Ackman said. The billionaire made the investment through the Pershing Square Foundation, which manages his personal wealth. He did not disclose the size of the investment.Health officials in San Miguel County, home of the popular ski-town Telluride, teamed up with United Biomedical earlier this month to collect blood samples to test the kits and provide free screening to people in the area.The tests can determine whether a person has been infected by Covid-19 within hours, rather than the days it takes for the current, drive-thru nasal swab tests.Broader antibody based screen will give an accurate estimate of what percentage of the population is infected, Ackman said. That will allow more accurate data on the virus’s characteristics, such as how many people become critically ill and how many have only limited symptoms.“Imagine how differently and effectively we could have managed this crisis if we actually knew who was infected,” he said.United Biomedical has spent years producing vaccines for animals and working on human treatments for diseases like Alzheimer’s and Parkinson’s. It manufacturers its test kits on Long Island, New York.The company has been around for more than three decades. Its animal vaccines have been used to protect billions of farm animals from foot-and-mouth disease and to chemically castrate pigs. It also has developed blood-screening kits and a test for SARS, or Severe Acute Respiratory Syndrome.“We believe it is inevitable that in order to halt the advance of the virus and preserve the ability of local, city, and state health-care systems to deal with the volume of critical care patients, nearly all states will eventually initiate strong-form, non-essential business closures and stay-at-home regulations,” Ackman said.(Updates with additional details in the final paragraph; An earlier version of this report corrected the return on Ackman’s hedges)For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
To the annoyance of some shareholders, Lowe's Companies (NYSE:LOW) shares are down a considerable 42% in the last...
Lowe's Companies, Inc. (NYSE:LOW) shareholders (or potential shareholders) will be happy to see that the President...
There's been a notable change in appetite for Lowe's Companies, Inc. (NYSE:LOW) shares in the week since its yearly...
Lowe's (LOW) delivered earnings and revenue surprises of 3.30% and -0.74%, respectively, for the quarter ended January 2020. Do the numbers hold clues to what lies ahead for the stock?
(Bloomberg Opinion) -- Who would have thought power tools and patio sets would be big holiday-season winners?After big-box retailers such as Walmart Inc. and even superstar Target Corp. came up short during the 2019 holiday shopping sprint, Home Depot Inc. rebounded with a better-than-expected fourth quarter. Same-store sales rose 5.2%, ahead of consensus expectations of a 4.7% gain.The gains indicate the home-improvement chain is back on track after a third-quarter stumble. Then, same store sales were below estimates, and growth was slow enough to prompt the company to cut its full-year guidance on this measure. A strong housing market helped in the latest quarter. Consumers are more likely to renovate when prices are rising; moving to a new home also is a catalyst for spending. Meanwhile, warm weather prompted some projects to be brought forward, although this was offset by fewer winter storms, which typically drive repairs. Lumber deflation also eased. The upbeat results are also a sign that an $11 billion effort it announced in 2017 to modernize the company’s stores, upgrade digital options and enhance offerings for its key trade customers is starting to bear fruit.Home Depot is right to invest. Do-it-yourself stores can be soulless sheds if not updated regularly and managed properly. What’s more, the focus on the trade market is sensible. Many consumers, particularly young people, are shunning DIY in favor of “do-it-for-me” – hiring a tradesman to carry out a job. But the group needs to ensure the benefits of its spending continue to filter through to its results.And there are risks. The first is from the deadly coronavirus. About 70% of the company’s products are sourced from the U.S.; the rest come from elsewhere, much from China, where supply chains are being affected by the spread of the disease. A large amount of first-quarter merchandise is already in stores, and the company is working with suppliers to ensure a continued flow of stocks.The bigger danger, however, is that the epidemic has a broader effect on global economic growth and consumer confidence. Monday’s stock market plunge will do little to make Americans feel good about their wealth, something that is essential for purchasing expensive items such as new kitchen. Meanwhile, Lowe’s Cos. — which is working on its own renovation project under new chief executive Marvin Ellison —could become a more muscular rival.Investors seem to be shrugging off these concerns right now. The shares rose almost 2 percent on Tuesday morning, and now trade on a forward price earnings ratio of about 23 times, a premium to about 18 times for Lowe’s.Home Depot may have put its rough patch behind it. But at its current valuation, the risks can’t be swept entirely under a graphic print rug.To contact the author of this story: Andrea Felsted at firstname.lastname@example.orgTo contact the editor responsible for this story: Beth Williams at email@example.comThis column does not necessarily reflect the opinion of Bloomberg LP and its owners.Andrea Felsted is a Bloomberg Opinion columnist covering the consumer and retail industries. She previously worked at the Financial Times.For more articles like this, please visit us at bloomberg.com/opinionSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
Lowe's (LOW) doesn't possess the right combination of the two key ingredients for a likely earnings beat in its upcoming report. Get prepared with the key expectations.
(Bloomberg) -- Welcome to Wednesday, Asia. Here’s the latest news and analysis from Bloomberg Economics to help get your day started:Hong Kong is heading for its first back-to-back annual recessions on record, as the coronavirus shutdown cripples an economy already battered by months of political unrestAustralia’s central bank chief Philip Lowe and his U.S. counterpart Jerome Powell have both witnessed multi-year hiring surges. Yet Powell’s jobless rate has a 3 in front of it and Lowe’s a 5Singapore will post its biggest budget deficit since at least 1997, pledging S$6.4 billion ($4.6 billion) in dedicated support for an economy being slammed by the coronavirus outbreakThe biggest question for the global economy right now is how quickly China can get back to anything like normal operations while it’s battling the coronavirus outbreakDallas Fed President Robert Kaplan says monetary policy is “roughly appropriate,” and he expects rates to remain on hold through 2020President Donald Trump cast doubts over the likelihood of an anticipated trade deal with India just days before a scheduled visitEuro-area finance ministers were presented with a fiscal policy document highlighting a lack of coordination, and the risk of a protracted economic malaise reminiscent of the one that befell Japan. Their response: silenceJapanese banks must accelerate their preparation for the end of Libor to avoid possible damage to the financial sector and the wider economy, according to a senior Bank of Japan official who has seen the initial results of a key nationwide surveyBrazil central bank President Roberto Campos Neto met with one of the country’s largest legislative caucuses to hammer home that it’s time to pass a long-awaited autonomy billBoris Johnson’s “deep and abiding love for Australia,” born in the gap year he spent there, is inspiring the U.K. prime minister anewTo contact the reporter on this story: Michael Heath in Sydney at firstname.lastname@example.orgTo contact the editors responsible for this story: Paul Jackson at email@example.com, Alexandra VeroudeFor more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.