Friday, June 4, 2010

High on Lowe's

Barron’s

Lowe's is also buying back shares at a rapid pace, purchasing $420 million worth of stock in the first quarter. Given that the company's debt-to-equity ratio is under 30%, its share repurchase program should continue.

"There's more willingness by management to return money to shareholders," Sozzi says. "I think they can continue to purchase shares aggressively."

To be sure, the company's fortunes depend heavily on the housing market, and the second half of the year could see more weakness there. But a wholesale housing collapse is unlikely, giving how far prices have already come down.

Link to full article: http://online.barrons.com/article/SB127409767412092821.html?mod=BOL_hpp_highlight