Lowes Companies Inc. (LOW)

Has since sold shares. Waiting for shares to fall before buying again. Concerns over consumer spending a point of worry. If recession occurs, will impact consumers first. Overall, a strong business, so will buy again at another time. 

Reports tomorrow. Shares up only 3% this year. Home Depot's report gives him hope here. Unlike HD, Lowes relies more on DIYers in home renos (the pros use HD more), which is a plus.

The homebuilder sector has been hurt by higher interest rates as the consumer shows some cracks in spending. Employment is holding up for now, so maybe the consumer will hold up after all. Watch the consumer. Prefers Lowes for its better multiple.

Is down 10% in the last 3 months. It's been tough for the homebuilders. They did have a positive quarter. Likes that they are gaining market share in the professionals segment and oeprating margins continue to grow. Happy to hold onto this.

It reports next week. A great value name. Lowes delivers earnings and dividends well. Has owned it a long time.

Excellent company.
Will continue to hold.
Expects demand for building products to increase as economy recovers. 
Strong management team with good long term prospects. 

Trades at a lower multiple than HD. Increased operating margins from 11% to 16%, pro business is expanding. Applying HD playbook very successfully.

He just sold Home Depot and holds a small position in this. The difference is that Lowes is growing its professionals segment, which is up 10% the past quarter.

It reports Wednesday, and the street is bearish. But he likes LOW, because it's already declined from Home Depot's last quarter and he expects the CEO is tell a positive forecast.