Lowe’s Companies, Inc. (NYSE:LOW) took a hit after posting lower than expected second quarter results, but analysts think that the stock could gain value on the back of Hurricane Irma, as millions of people in Florida will buy home improvement items to fix their damaged homes. Lowe’s Companies has 8% of its total stories in Florida.
The company is also expected to see a boost in its sales in Texas, where Hurricane Harvey resulted in massive flooding in the Houston area. Lowe’s has 7% exposure in Texas. Deutsche Bank’s analysts Adam Sindler recently said in a report that Lowe’s Companies will benefit from the storms.
Based on the analysts' estimates both the revenue and the net result would be the highest in years. For this year Lowe's 's revenue will be around 68,34 billion USD. This is according to the average of the analysts' estimates. The expected revenue would be the highest in her history. This is slightly more than 2016's revenue of 65,02 billion USD.
The analysts anticipate for 2017 a record net profit a 3,78 billion USD. According to most of the analysts the company will have a profit per share for this book year of 4,5 USD. So the price/earnings-ratio equals 17,33.
Per share the analysts expect a dividend of 1,48 USD per share. The dividend yield is then 1,9 percent. The average dividend yield of the construction/infrastructure companies equals a limited 1,14 percent.Based on the current number of shares Lowe's 's market capitalization equals 70,97 billion USD. On Friday the stock closed at 77,99 USD.
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