Here's Why Lowe's Companies (LOW) Rose in Q3

Madison Investments, an investment advisor, released its “Madison Large Cap Fund” third-quarter 2025 investor letter. A copy of the letter can be downloaded here. The fund decreased 2.2% in the third quarter compared to an 8.1% gain for the S&P 500 Index. The current market focus on short-term profits led the fund to underperform the benchmark considerably in the quarter. In addition, please check the fund’s top five holdings to know its best picks in 2025.

In its third-quarter 2025 investor letter, Madison Large Cap Fund highlighted stocks such as Lowe’s Companies, Inc. (NYSE:LOW). Lowe’s Companies, Inc. (NYSE:LOW) is a home improvement retailer. The one-month return of Lowe’s Companies, Inc. (NYSE:LOW) was -3.21%, and its shares lost 13.66% of their value over the last 52 weeks. On November 10, 2025, Lowe’s Companies, Inc. (NYSE:LOW) stock closed at $233.03 per share, with a market capitalization of $130.689 billion.

Madison Large Cap Fund stated the following regarding Lowe’s Companies, Inc. (NYSE:LOW) in its third quarter 2025 investor letter:

"The top five contributors for the quarter were Alphabet, Lowe’s Companies, Inc. (NYSE:LOW), TJX, Brookfield Corporation, and Parker-Hannifin. Two of our retailers were also good contributors in the quarter. Home improvement retailer Lowe’s results improved as the U.S. housing market appears to be thawing after years of suppressed activity due to high interest rates. The company also announced the acquisition of Foundation Building Materials to serve large, professional customers, which is a large growth opportunity."

Lowe’s Companies, Inc. (NYSE:LOW) is not on our list of 30 Most Popular Stocks Among Hedge Funds. According to our database, 75 hedge fund portfolios held Lowe’s Companies, Inc. (NYSE:LOW) at the end of the second quarter, up from 68 in the previous quarter.  While we acknowledge the potential of Lowe’s Companies, Inc. (NYSE:LOW) as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

In another article, we covered Lowe’s Companies, Inc. (NYSE:LOW) and shared the list of best dividend aristocrat stocks to invest in. In addition, please check out our hedge fund investor letters Q3 2025 page for more investor letters from hedge funds and other leading investors.

READ NEXT: The Best and Worst Dow Stocks for the Next 12 Months and 10 Unstoppable Stocks That Could Double Your Money.

Disclosure: None. This article is originally published at Insider Monkey.