"When you see interest rates start to go up, if there's a little pressure on home sales the DIY trend comes back. I think at these prices you've got something you should buy," he said. HPM Partners' Jim Lebenthal echoed this point, noting that Lowe's has been unfairly dragged down by broader sector weakness. "I think this thing [Lowe's] is beaten down enough. I think the fears about housing falling off a cliff are over placed...if they [Lowe's] control margins it should be off to the races," he said on the "Halftime Report."
One of McShane's primarily reasons for bumping her rating on Lowe's to a buy is the management team, which she believes has created a turnaround plan that will unlock future value.
"New CEO Marvin Ellison has revamped LOW's management team and refocused the organization on improving the supply chain, inventories, omni-channel initiatives, and in-store products and services," she wrote in her note upgrading the stock.
Like McShane, Pete Najarian, who owns the stock, believes the company's new management team will drive gains going forward. "Here's what I like the most: the management...The leadership really does matter...online and in stores this guy [Marvin Ellison] is the man," he argued.
But not everyone believes the company has a bright future ahead. Stephanie Link, managing director at Nuveen which has $970 billion in assets under management, believes that at 17X forward earnings investors are paying too much for lackluster growth.
"They [Lowe's] have under-invested all these years so I actually think the earnings power isn't what people think it is," she said on Tuesday's "Halftime Report."
Shares of Lowe's are up 5.57% for the year, and the company yields 1.96%.