Lowe's: Buy the Dip — Weak Housing, Strong Cash Flow, Compelling Entry
Lowe's has pulled back with the weak housing backdrop and now trades well below its 52-week high. The business still generates $7B of free cash flow, carries a reasonable EV/EBITDA of 11, and pays a meaningful quarterly dividend. This pullback creates a tactical long opportunity for investors willing to withstand continued housing softness.