Lowe's Companies (LOW) Soared Following Strong Results

Cullen Capital Management, LLC, operating under the name Schafer Cullen Capital Management, Inc. (SCCM), has released its “SCCM Value Equity Strategy” third-quarter investor letter. A copy of the letter can be downloaded here. The US equity market continued the rally in the third quarter, with the S&P 500 returning 8.1% and the Russell 1000 Value surging 5.3%. The value equity strategy returned 6.9% (gross of fees) and 6.8% (net of fees) in the quarter, while the Russell 1000 Value and S&P 500 returned 5.3% and 8.1%, respectively, during the same period. The strategy returned 13.0% (gross), YTD, compared to the Russell 1000 Value’s +11.7% return and the S&P 500’s +14.8% return. In addition, you can check the fund’s top 5 holdings to determine its best picks for 2025.

In its third-quarter 2025 investor letter, SCCM Value Equity Strategy 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 -9.84%, and its shares lost 16.52% of their value over the last 52 weeks. On November 18, 2025, Lowe’s Companies, Inc. (NYSE:LOW) stock closed at $219.57 per share, with a market capitalization of $123.14 billion.

SCCM Value Equity Strategy stated the following regarding Lowe’s Companies, Inc. (NYSE:LOW) in its third quarter 2025 investor letter:

"Our strong stock selection within the Consumer Discretionary sector benefitted relative performance. Lowe’s Companies, Inc. (NYSE:LOW) (+13.9%) also reported strong second quarter earnings, with comparable sales up 1.1%, its strongest result since 2022, driven by growth in both Pro and DIY segments. Gross margins expanded roughly 40 basis points, aided by improved product mix and cost control, while July comps rose 4.7%. The company also announced the $8.8 billion acquisition of Foundation Building Materials, broadening its Pro customer base and advancing its Total Home strategy. Solid execution, margin improvement, and portfolio expansion supported positive investor sentiment."

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 Madison Large Cap Fund's views on the company. In addition, please check out our hedge fund investor letters Q3 2025 page for more investor letters from hedge funds and other leading investors.

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