Investor or Trader? Know the Tax Rules Before You Buy or Sell!
Welcome to the 89th edition! This week focuses on the money moves that matter most—figuring out if you're a trader or investor for tax, pro strategies for day trading crypto, building elite-level trading routines, and the science shaping tomorrow's trading algorithms.
Insider Edge: Latest Trading Buzz
Investor or Trader? Know the Tax Rules Before You Buy or Sell!
🏦 Learn how Australia's tax office draws the line (and the different tax treatments) for trading vs investing in shares: Share Investing versus Share Trading | ATO 📑
Day Trading Crypto—High-Risk, High-Reward, 24/7
💸 See why crypto is the hottest and wildest day trading asset—and what rules, tools, and risks you need to know first: Day Trading Crypto 🚀
How to Build a Professional Trading Plan (From a Real Pro)
📝 Get the step-by-step method to structure your trades, lock in good habits, and avoid rookie mistakes: How to Build a Professional Trading Plan 📋
Next-Gen Trading Algorithms: Research Turning Science into Profit
🔬 Dive into the latest academic breakthroughs and how they translate into smarter, data-driven trading: arXiv: Modern Algorithmic Trading Research 🧠
Spotlight on Lowe's Companies, Inc. (LOW)
Current Price: ~$244 (Dec 2025)
Market Cap: ~$137 billion
Dividend Yield: ~2.0%
Sector: Consumer Discretionary – Home Improvement Retail
Why Lowe's Stands Out
Lowe's Companies, Inc. is the world's second‑largest home improvement retailer, operating over 1,700 stores primarily in North America and serving both DIY consumers and professional contractors ("Pro" customers). The company benefits from a fragmented market, strong brand loyalty, and a shift toward digital and services growth, positioning it well for long‑term housing tailwinds despite cyclical pressures.
025 Financial Snapshot
- Q3 2025 Sales: $20.8 billion, up ~3% year over year, with comparable sales +0.4% driven by online sales growth of 11.4%, double‑digit home services expansion, and Pro segment gains.
- Q3 2025 Net Earnings: $1.6 billion, diluted EPS $2.88 (down slightly from $2.99 YoY due to hurricane impacts and investments); adjusted diluted EPS $3.06, up 6% and beating consensus ~$2.97.
- Full‑Year 2025 Guidance: Adjusted EPS ~$12.25 (midpoint lowered slightly from prior $12.33 due to economic uncertainty).
- Inventory & Efficiency: Ended Q3 with $17.2 billion in inventory (down ~$400 million YoY); adjusted SG&A 19.6% of sales; adjusted operating margin 12.4% (up 10 bps YoY).
- Balance Sheet: Strong cash position supports dividends ($4.80 annualized, 53 years of increases) and share repurchases.
Lowe's closed its Foundation Building Materials (FBM) acquisition, investing $8.8 billion to bolster Pro offerings.
Growth Drivers
- Pro & Services Expansion: Double‑digit growth in Pro sales and home services, enhanced by the FBM deal and SKU rationalization for better inventory turnover.
- Digital & Omnichannel: Online sales +11.4% reflect strong e‑commerce penetration and buy‑online‑pickup‑in‑store execution.
- Housing Tailwinds: Long‑term undersupply and aging housing stock support demand for repairs, remodels, and appliances once macro conditions improve.
Risks to Consider
- Macroeconomic Headwinds: High interest rates, affordability challenges, and hurricane disruptions (e.g., Helene/Milton) pressure DIY spending and comps.
- Competitive Intensity: Rivalry with Home Depot, online disruptors, and big‑box peers squeezes margins in a consolidating retail landscape.
- Guidance Cuts: Recent EPS midpoint trim signals caution on consumer spending into 2026.
Analyst Sentiment & Valuation
Analysts lean positive on Lowe's resilience, Pro/digital momentum, and valuation (trading below historical averages), with 16 "Buy" ratings among 26 covering firms.
Bottom Line
Lowe's Companies, Inc. combines defensive retail scale, accelerating Pro/services growth, and reliable dividends, making it a steady compounder despite near‑term macro caution. For investors eyeing housing recovery plays with income, LOW offers balanced exposure at reasonable multiples.
Managing investment decisions among family or business partners
Navigating investment choices with others can lead to conflict or confusion. Our newsletter offers proven communication strategies and shared decision frameworks, helping you align goals and manage investments harmoniously.
Struggling to invest together? Join the newsletter and learn how to collaborate for success!
Final Key Takeaway
Success in modern trading depends on working smarter—from optimizing your tax strategy to mastering crypto volatility, professional planning, and the best science-backed tools!