This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
See Cramer's multi-million dollar portfolio for FREE and get his new book Get Rich Carefully! Learn More

Time for Lowe's to Improve

Along similar lines, the post-Hurricane Sandy boom benefited not just Home Depot but also lumber manufacturers Weyerhaeuser (WY) and Louisiana Pacific (LPX) with sustaining momentum. For Lowe's, however, that doesn't appear to have been the case.

Where Lowe's deserve credit is on the profit side. The company posted earnings excluding items of 49 cents per share, which is an 11% year-over-year improvement. Despite the miss on revenue, it was nonetheless encouraging Lowe's was able to advance both gross margin and operating margin by 10 basis points and 25 basis points, respectively -- enough to beat estimates.

All of that said, I don't believe it's time for investors take Lowe's to the proverbial woodshed -- at least not yet. I still like the company's management and I do see opportunities where Lowe's can turn things around.

For instance, it's been no secret that merchandising strategies have impeded the Lowe's progress, adding to Home Depot's advantage.

To that end, earlier this year Lowe's added Michael Jones as chief merchandising officer. With better attention to detail, which should drive in-store traffic and raise customer satisfaction, Lowe's should be able to narrow the gap. But it's not going to happen overnight.


Besides, this is just one part of the many problems the company must repair. Management still has deficits with staffing and operational efficiencies to fix. As bad as things may appear for Lowe's, investors should thank their lucky stars Lowe's is not as bad as JC Penney (JCP).

It's not a glowing endorsement. But I do want to keep my Lowe's analysis in the proper context. Despite these struggles, I still believe this stock should be bought and that Lowe's will overcome its challenges.

It's just a matter of time. But it's just going to require considerably more patience than investors may be willing to spend.

At the time of publication the author had no position in any of the stocks mentioned.

This article was written by an independent contributor, separate from TheStreet's regular news coverage.

Stock quotes in this article: LOW, HD, WMT, WY, LPX 
Richard Saintvilus is a private investor with an information technology and engineering background and the founder and producer of the investor Web site Saint's Sense. He has been investing and trading for over 15 years. He employs conservative strategies in assessing equities and appraising value while minimizing downside risk. His decisions are based in part on management, growth prospects, return on equity and price-to-earnings as well as macroeconomic factors. He is an investor who seeks opportunities whether on the long or short side and believes in changing positions as information changes.

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
DOW 16,408.54 -16.31 -0.10%
S&P 500 1,864.85 +2.54 0.14%
NASDAQ 4,095.5160 +9.2910 0.23%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto
Advertising Partners

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs