Marvin Ellison 5.0 2 ideas

Lowe's is launching a new subscription service (HomeCare+) to build long-term customer relationships, investing $250 million in skilled trades training to address workforce shortages, and has diversified its supply chain (60% produced in the US) to manage tariffs effectively. The company expects positive revenue growth in 2026 by taking market share in a flat home improvement market, driven by an aging housing stock and a resilient customer base with high equity and income. For accelerated growth, they need mortgage rates below 6%, but even without that, they can grow.

Lowe's new HomeCare+ subscription service offers in-home maintenance for $99 per year, performed by trained associates, leveraging human capital to build long-term customer relationships, drive repeat business, and generate profits, with initial response being great and potential for future growth.