The Advantage of Buyback Stocks Amid Market Turbulence
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 1 day ago
0mins
Source: CNBC
- Market Volatility Strategy: Wolfe Research highlights that companies with consistent buybacks can offer investors a relatively safe investment option during turbulent market conditions, particularly as President Trump's threats against Iran escalate, contributing to a bearish market sentiment.
- Investment Potential of Lowe's: Lowe's is included in Wolfe's defensive stock basket, boasting a current dividend yield of approximately 2.1%, and despite a more than 4% decline in 2026, analysts are optimistic about its future, forecasting a 23% upside in its stock price.
- ADP's Competitive Edge: ADP, a payroll services provider, has raised its cash dividend for 51 consecutive years, with a current yield of 3.3%, and while concerns about AI disruption loom, analysts believe its unique advantages in compliance and data will support long-term growth.
- Diversity of Buyback Stocks: Wolfe's list also includes companies like Colgate-Palmolive, Illinois Tool Works, AO Smith, and Mondelez, all of which have consistently repurchased shares over the past decade, demonstrating resilience and attractiveness during economic slowdowns.
Trade with 70% Backtested Accuracy
Stop guessing "Should I Buy LOW?" and start using high-conviction signals backed by rigorous historical data.
Sign up today to access powerful investing tools and make smarter, data-driven decisions.
Analyst Views on LOW
Wall Street analysts forecast LOW stock price to rise
22 Analyst Rating
16 Buy
6 Hold
0 Sell
Moderate Buy
Current: 231.610
Low
250.00
Averages
278.27
High
316.00
Current: 231.610
Low
250.00
Averages
278.27
High
316.00
About LOW
Lowe's Companies, Inc. is a home improvement company. The Company offers a complete line of products for construction, maintenance, repair, remodeling, and decorating. It offers home improvement products in various categories, including appliances, seasonal and outdoor living, lumber, lawn and garden, kitchens and bath, hardware, building materials, millwork, paint, rough plumbing, tools, electrical, flooring, and decor. It is focused on offering a wide selection of national brand-name merchandise complemented by its selection of private brands. Its services include installed sales and Lowe's Protection Plans and Repair Services. The Company offers installation services through independent contractors in many of its product categories. It offers extended protection plans for certain products within the appliances, kitchens and bath, decor, millwork, rough plumbing, electrical, seasonal and outdoor living, tools, and hardware categories. It operates over 1,700 home improvement stores.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Lowe's Foundation to Invest $250 Million in Skilled Trades Training
- Expanded Investment: The Lowe's Foundation has announced a plan to invest $250 million to train and develop 250,000 skilled tradespeople, increasing its workforce commitment five-fold to address the urgent demand for skilled workers in the construction industry.
- Addressing Industry Shortage: With the construction sector requiring hundreds of thousands of additional workers, this new goal builds on the foundation's earlier $50 million commitment made in 2023, demonstrating a strong resolve to tackle the skilled labor shortage.
- Funding Utilization: Nearly $53 million has already been invested across 65 nonprofits and community colleges, with the foundation on track to meet its initial target ahead of schedule, thereby enhancing its impact within the community.
- Career Development Pathways: The initiative will also enhance career pathways through partnerships with the National Center for Construction Education and Research, and promote skilled trades careers through a new three-part television series,
See More
Indian Textile Industry Faces New Challenges Amid Iran War
- Export Decline: India's textile exports from April 2025 to February 2026 totaled $29.5 billion, a slight drop from $29.8 billion the previous year, indicating the fragility of recovery in an industry aiming for $100 billion in exports by 2030.
- Rising Costs: The Iran war has driven raw material and packaging costs up, with polyester prices increasing over 40% since the conflict began, complicating companies' ability to pass costs onto customers and impacting production and profitability.
- Weak Demand: Although tariff relief from the U.S. provided temporary respite, industry leaders warn that a prolonged war could dampen U.S. consumer demand, leading to declining sales and rising inventories, posing significant challenges for retailers.
- Production Cuts: Companies like Filatex have already reduced production by 25% and are awaiting demand recovery, with widespread concerns that failure to pass on costs could lead to larger-scale production cuts, further affecting employment and economic growth.
See More
U.S.-Iran Tensions Ease, Market Rally Follows
- Market Rally: Following President Trump's announcement to suspend attacks on Iran, the Dow Jones Industrial Average surged 2.85%, the S&P 500 rose 2.51%, and the Nasdaq jumped 2.8%, reflecting investor optimism about market stabilization.
- Interest Rate Expectations: With a sharp decline in the 10-year treasury yield, the market anticipates lower interest rates, which are crucial for reviving the housing market, particularly benefiting companies like Home Depot that thrive in low-rate environments.
- Strong Performance from Leaders: Stocks such as Sherwin-Williams, Caterpillar, Home Depot, and Goldman Sachs led the rally, indicating investor confidence in these companies and suggesting expectations for economic recovery.
- Weakness in Oil Stocks: Despite the overall market rebound, oil companies like Chevron and Diamondback faced significant pressure, highlighting investor concerns over Middle Eastern supply disruptions and the ongoing uncertainty in the sector.
See More
US Housing Market Recovery Stalled as Mortgage Rates Surge
- Mortgage Rate Surge: The average 30-year fixed mortgage rate, which had fallen below 6% from over 7% since January 2025, has surged back above 6.5% in the last six weeks, indicating rising inflation concerns that could dampen homebuying demand.
- Significant Inflation Impact: Triggered by soaring oil prices, the yield on the 10-year Treasury has risen from 3.94% to 4.34%, a 40 basis point increase in about a month, directly affecting mortgage rates and adding pressure to an already weak housing market.
- Decline in Builder Stocks: Homebuilders Lennar and PulteGroup have seen their stocks drop 14.3% and 8.9% respectively over the past month, while Home Depot and Lowe's have also fallen 11% and 8.5%, reflecting a pessimistic sentiment regarding the housing market outlook.
- Uncertain Future Outlook: Although the market had anticipated Fed rate cuts for relief, rising inflation concerns have nearly eliminated those expectations, prompting investors to closely watch the upcoming Consumer Price Index data to assess potential opportunities for spring homebuyers.
See More
US Housing Market Faces Pressure from Rising Rates
- Rising Mortgage Rates: Over the past six weeks, the 30-year fixed mortgage rate has surged from below 6% to above 6.5%, primarily due to inflation concerns triggered by rising oil prices, posing a significant challenge to the already troubled U.S. housing market.
- Decline in Builder Stocks: Homebuilder Lennar (NYSE: LEN) has plunged 14.3% in the past month, while PulteGroup (NYSE: PHM) is down 8.9%, reflecting a pessimistic sentiment in the market regarding the potential recovery of the housing sector.
- Home Improvement Stocks Hit Hard: Major home improvement retailers Home Depot (NYSE: HD) and Lowe's (NYSE: LOW) have seen declines of 11% and 8.5%, respectively, indicating investor concerns over rising rates that have negatively impacted their stock performance.
- Future Rate Expectations: The market is pricing in no rate cuts from the Fed through 2026, with some officials suggesting a potential rate hike, further undermining investor confidence in a housing market recovery, especially as upcoming Consumer Price Index data may influence spring homebuyer decisions.
See More
The Advantage of Buyback Stocks Amid Market Turbulence
- Market Volatility Strategy: Wolfe Research highlights that companies with consistent buybacks can offer investors a relatively safe investment option during turbulent market conditions, particularly as President Trump's threats against Iran escalate, contributing to a bearish market sentiment.
- Investment Potential of Lowe's: Lowe's is included in Wolfe's defensive stock basket, boasting a current dividend yield of approximately 2.1%, and despite a more than 4% decline in 2026, analysts are optimistic about its future, forecasting a 23% upside in its stock price.
- ADP's Competitive Edge: ADP, a payroll services provider, has raised its cash dividend for 51 consecutive years, with a current yield of 3.3%, and while concerns about AI disruption loom, analysts believe its unique advantages in compliance and data will support long-term growth.
- Diversity of Buyback Stocks: Wolfe's list also includes companies like Colgate-Palmolive, Illinois Tool Works, AO Smith, and Mondelez, all of which have consistently repurchased shares over the past decade, demonstrating resilience and attractiveness during economic slowdowns.
See More
Lowe's Foundation to Invest $250 Million in Skilled Trades Training
- Expanded Investment: The Lowe's Foundation has announced a plan to invest $250 million to train and develop 250,000 skilled tradespeople, increasing its workforce commitment five-fold to address the urgent demand for skilled workers in the construction industry.
- Addressing Industry Shortage: With the construction sector requiring hundreds of thousands of additional workers, this new goal builds on the foundation's earlier $50 million commitment made in 2023, demonstrating a strong resolve to tackle the skilled labor shortage.
- Funding Utilization: Nearly $53 million has already been invested across 65 nonprofits and community colleges, with the foundation on track to meet its initial target ahead of schedule, thereby enhancing its impact within the community.
- Career Development Pathways: The initiative will also enhance career pathways through partnerships with the National Center for Construction Education and Research, and promote skilled trades careers through a new three-part television series,
See More
Indian Textile Industry Faces New Challenges Amid Iran War
- Export Decline: India's textile exports from April 2025 to February 2026 totaled $29.5 billion, a slight drop from $29.8 billion the previous year, indicating the fragility of recovery in an industry aiming for $100 billion in exports by 2030.
- Rising Costs: The Iran war has driven raw material and packaging costs up, with polyester prices increasing over 40% since the conflict began, complicating companies' ability to pass costs onto customers and impacting production and profitability.
- Weak Demand: Although tariff relief from the U.S. provided temporary respite, industry leaders warn that a prolonged war could dampen U.S. consumer demand, leading to declining sales and rising inventories, posing significant challenges for retailers.
- Production Cuts: Companies like Filatex have already reduced production by 25% and are awaiting demand recovery, with widespread concerns that failure to pass on costs could lead to larger-scale production cuts, further affecting employment and economic growth.
See More
U.S.-Iran Tensions Ease, Market Rally Follows
- Market Rally: Following President Trump's announcement to suspend attacks on Iran, the Dow Jones Industrial Average surged 2.85%, the S&P 500 rose 2.51%, and the Nasdaq jumped 2.8%, reflecting investor optimism about market stabilization.
- Interest Rate Expectations: With a sharp decline in the 10-year treasury yield, the market anticipates lower interest rates, which are crucial for reviving the housing market, particularly benefiting companies like Home Depot that thrive in low-rate environments.
- Strong Performance from Leaders: Stocks such as Sherwin-Williams, Caterpillar, Home Depot, and Goldman Sachs led the rally, indicating investor confidence in these companies and suggesting expectations for economic recovery.
- Weakness in Oil Stocks: Despite the overall market rebound, oil companies like Chevron and Diamondback faced significant pressure, highlighting investor concerns over Middle Eastern supply disruptions and the ongoing uncertainty in the sector.
See More
US Housing Market Recovery Stalled as Mortgage Rates Surge
- Mortgage Rate Surge: The average 30-year fixed mortgage rate, which had fallen below 6% from over 7% since January 2025, has surged back above 6.5% in the last six weeks, indicating rising inflation concerns that could dampen homebuying demand.
- Significant Inflation Impact: Triggered by soaring oil prices, the yield on the 10-year Treasury has risen from 3.94% to 4.34%, a 40 basis point increase in about a month, directly affecting mortgage rates and adding pressure to an already weak housing market.
- Decline in Builder Stocks: Homebuilders Lennar and PulteGroup have seen their stocks drop 14.3% and 8.9% respectively over the past month, while Home Depot and Lowe's have also fallen 11% and 8.5%, reflecting a pessimistic sentiment regarding the housing market outlook.
- Uncertain Future Outlook: Although the market had anticipated Fed rate cuts for relief, rising inflation concerns have nearly eliminated those expectations, prompting investors to closely watch the upcoming Consumer Price Index data to assess potential opportunities for spring homebuyers.
See More
US Housing Market Faces Pressure from Rising Rates
- Rising Mortgage Rates: Over the past six weeks, the 30-year fixed mortgage rate has surged from below 6% to above 6.5%, primarily due to inflation concerns triggered by rising oil prices, posing a significant challenge to the already troubled U.S. housing market.
- Decline in Builder Stocks: Homebuilder Lennar (NYSE: LEN) has plunged 14.3% in the past month, while PulteGroup (NYSE: PHM) is down 8.9%, reflecting a pessimistic sentiment in the market regarding the potential recovery of the housing sector.
- Home Improvement Stocks Hit Hard: Major home improvement retailers Home Depot (NYSE: HD) and Lowe's (NYSE: LOW) have seen declines of 11% and 8.5%, respectively, indicating investor concerns over rising rates that have negatively impacted their stock performance.
- Future Rate Expectations: The market is pricing in no rate cuts from the Fed through 2026, with some officials suggesting a potential rate hike, further undermining investor confidence in a housing market recovery, especially as upcoming Consumer Price Index data may influence spring homebuyer decisions.
See More
The Advantage of Buyback Stocks Amid Market Turbulence
- Market Volatility Strategy: Wolfe Research highlights that companies with consistent buybacks can offer investors a relatively safe investment option during turbulent market conditions, particularly as President Trump's threats against Iran escalate, contributing to a bearish market sentiment.
- Investment Potential of Lowe's: Lowe's is included in Wolfe's defensive stock basket, boasting a current dividend yield of approximately 2.1%, and despite a more than 4% decline in 2026, analysts are optimistic about its future, forecasting a 23% upside in its stock price.
- ADP's Competitive Edge: ADP, a payroll services provider, has raised its cash dividend for 51 consecutive years, with a current yield of 3.3%, and while concerns about AI disruption loom, analysts believe its unique advantages in compliance and data will support long-term growth.
- Diversity of Buyback Stocks: Wolfe's list also includes companies like Colgate-Palmolive, Illinois Tool Works, AO Smith, and Mondelez, all of which have consistently repurchased shares over the past decade, demonstrating resilience and attractiveness during economic slowdowns.
See More
