Lowe's Companies, Inc. (LOW)

LOW stock forecast: buy or sell

LOW stock outlook

  • Lowe's Companies inched a 1.05% after marking new all-time highs on Friday
  • Jefferies Financial Group posted a neutral rating for Lowe's Companies on Friday, forecasting $187.00
  • Lowe's Companies, Inc., together with its subsidiaries, operates as a home improvement retailer in the United States, Canada, and Mexico.
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Important:
The comments contained in this post are personal and not recommendations for you to buy or sell stocks. The author of this text does not have any knowledge of the individual scenarios of the reader, his or her own financial statements or his or her own best interests at any given time. All users should speak with their financial advisor before buying or selling any securities Comments are provided for informational motives only

LOW stock chart overview

Should I buy Lowe's Companies stock?

All successful traders recommend adhering to a trading strategy and not make decisions based on subjective opinions, rumors or feelings. Trading strategies are meant for helping you in the decision process of what stocks to pick and when is the best moment to buy them. At Stocks2.com, we like to use very simple but trusted and powerful trend following trading strategies. Simple things usually work the best

Is LOW stock a buy?

In the current situation of Lowe's Companies there is not any eligible buy setup. This doesn't mean we expect a selloff for LOW in coming sessions, or that it may not climb higher. Simply, it doesn't match our recommended trading systems

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Should I sell Lowe's Companies stock?

Knowing when to sell a stock is even more difficult than knowing when to buy it. Trading strategies prevent us from making rash decisions based on our personal moods or the noise surrounding the market. When selling, as well as buying, our setups are very easy to follow and are only valid for selling stocks in your porfolio, not for shorting Lowe's Companies stock

As a rule of thumb, you should never keep a trading operation that results in losses greater than those expected at the time of the buy. When to sell your stock must always be determined by the stop-loss (automatic or manual)

Is it time to sell Lowe's Companies stock?

Currently, Lowe's Companies stock doesn't match any of our preferred sell setups, so if you own Lowe's Companies shares and your operation is in profit probably is not time to sell now

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Analysts' recommendations to buy or sell Lowe's Companies stock

Brokerage firms and financial institutions post stock ratings based on their views of the market and the fundamental and technical situation of the analyzed stock. Unfortunately, the accuracy of these predictions is not very high, and certainly not a direct buy or sell signal

In the last month, 4 analyst ratings were published for Lowe's Companies

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Lowe's Companies ratings

Brokerage firmRating
Jul 24th, 2020
KeyCorp Buy
Jul 24th, 2020
Royal Bank of Canada Neutral
Jul 28th, 2020
Wells Fargo & Co Strong buy
Aug 7th, 2020
Jefferies Financial Group Neutral

Technical analysis

Since in mid-March, Lowe's Companies has been printing an uptrend that so far marked an amazing 157.08%. The price action shows higher highs and lows, and along the way provided very few entry points for those who wanted to invest. Latest low was in mid-June, when price bounced at $122.62. Lowe's Companies broke out above $132.88 (its last top) in late June. That breakout was a good buy point that resulted in a 14.98% profit

LOW at All-time Highs

Lowe's Companies did it again, and hit all-time highs (ATH) on Friday at $154.12. It's the 6th time in the last 10 sessions, marking an important rally

SMAs overview

Moving averages are simple indicators for investors to gauge stock direction. A moving average is the average price of a stock over a set period of time. Moving averages are usually calculated on different periods depending on the trading timeframe 21, 50, 100 and 200 days are the most usual moving averages

Supports and resistances

Investors use supports and resistances as a way to find price points on a chart that may behave as glass ceiling, containing the price of shares to move in certain direction. A support level is a level where the price may find support as it falls. Price is more likely to "bounce off" this level rather than break through it. Nevertheless, if the price breaks down the support, it will probably continue declining until meeting another support level. On the other side, resistance levels are where the price tends to find opposition as it rises. In the same way, the price is more likely to "rebound" at this level, and if it finally crosses this level, it will climb more easily until it meets the next resistance

Price is at all-time highs and there are not upper resistances.

The current supports are:

  • S1: $132.88 (-13.03% below)
  • S2: $125.52 (-17.84% below)
  • S3: $122.62 (-19.74% below)
  • Bollinger bands

    This is an indicator that was introduced in the 1980s by John Bollinger. It comprises 3 bands that are outlined superimposed on the price evolution chart:

    • The central band is a moving average, usually a simple moving average calculated with 20 periods
    • The upper band is calculated by adding to the value of the simple moving average 2 times the standard deviation of the moving average
    • The lower band is calculated by subtracting from the simple moving average 2 times the standard deviation of the moving average

    The price is moving very close to the upper Bollinger band, indicating some level of overbought in recent sessions. This is not a bearish indicator, as price can move in these levels for many days and weeks

    Relative strength index

    The RSI (Relative Strength Index) is an oscillator-type indicator that gauges price changes to spot when the price of a share or financial asset is oversold or overbought. Oscillator indicators, such as relative strength, are designed to indicate values in the range of 0-100. J. Welles Wilder introduced the relative strength indicator in 1978 and since then it has been widely used by stock traders

    Relative strength (RSI) broke through the 70 level Friday, marking a value of 76.07. Breaking through above the level of 70 is not a sell signal, as stock price can rise during several weeks being in the overvalued zone

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    Earnings and financials

    Lowe's Companies, Inc. (LOW) posted Q1 earnings of $1.77 per share, strongly beating the analysts consensus estimate of $1.32 per share. This Q1 report means an earnings surprise of 34.09%. On the contrary, reported sales were $16.0 billion, consistent with the market forecasts.

    In comparing, the EPS for the same quarter last year was $1.22, so current EPS means a improvement of 45.08%. Sales scarcely changed on an annualized basis in the 1st-quarter, from $15.6B to $16.0B last quarter.

    LOW will host the quarterly earnings call on Wednesday next week. Market forecasts a per-share earnings of %s of $2.66, compared to Q1 that made $1.77. Earnings reporting day has an additional risk for traders as the results posted can jump up or down the shares price with lower volume and not honouring your buy/stop-loss orders. You can probably uncover more details about the earnings call and the financial reports on the Investor Relations section of its website: http://www.lowes.com.

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