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Lowe's Companies, Inc. (LOW)

LOW stock forecast: buy or sell

Close on Oct 23rd, 2020
$172.14 +0.52%
3 months performance
15.70%
Published: October 24th, 2020 - 5.12pm EDT

LOW stock outlook

  • Lowe's closed yesterday at $172.14 after merely changing a 0.52%.
  • The stock is configuring an uptrend pattern since last March, when it bottomed at $59.22. Up to date, price marked a 190.68% gain since the beginning of this rally
  • KeyCorp posted a buy rating for Lowe's on Wednesday, forecasting $200.00
  • Lowe's Companies, Inc., together with its subsidiaries, operates as a home improvement retailer in the United States, Canada, and Mexico.

Important note:
The thoughts expressed in this post are personal and should not be followed as recommendations for you to buy or sell stocks. The author of this report does not know the specific conditions of the reader, his or her 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 Thoughts are published for learning motives only

LOW stock charts

Should I buy Lowe's stock?

Even if you are a experienced or a novel trader, best trading results come from using an investing strategy that never leaves to random or subjective opinions when is the best moment to buy or sell stocks. 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?

Currently, Lowe's stock doesn't match any of these trading strategies, so our recommendation is not to buy now. This doesn't mean we expect a selloff for $LOW in the next few days, or that it may not rise higher. Simply, it doesn't match our recommended trading systems

Should I sell Lowe's stock?

When you are a novel trader and you own stock shares with some profit, it's really difficult to decide the good moment to sell and get your profits. Trading strategies prevent us from making impulsive decisions based on our personal feelings or the buzz surrounding the market. When selling, as well as buying, our setups are very easy to follow but are only valid for selling shares in your porfolio, not for selling short Lowe's stock

As a rule of thumb, you should not mantain an investment that shows a higher than expected losses upon the buy. The moment to sell shares must always be dictated by the stop-loss (automatic or manual)

Is it time to sell Lowe's stock?

In the current situation of Lowe's there is not any eligible sell setup, so Lowe's stock holders with operations in profit can keep their positions

Analysts' recommendations to buy or sell Lowe's 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, 3 analyst ratings were published for Lowe's

Lowe's ratings

Brokerage firmRating
Oct 5th, 2020
BNP Paribas Neutral
Oct 5th, 2020
Exane BNP Paribas Neutral
Oct 21st, 2020
KeyCorp Buy

Technical analysis

Lowe's shares started an uptrend last March, and grew an amazing 190.68%. During this uptrend, the price offered some entry points on the breakouts. Latest low was in mid-September, when price bounced at $154.67. Currently, it swings in a consolidation between its last top ($180.05) and its last bottom ($154.67)

SMAs overview

A favorite tool of many trading systems are the moving averages, that easily show trend 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

LOW SMAs chart

Supports and resistances

Traders use support and resistance levels as a way to spot price points on a chart that may work as obstacles, containing the price of an asset to move up or down. Supports are levels where the price may find support as it falls. Price is more likely to "bounce off" this level rather than break through it. However, if the price breaks down the support, it is likely to continue descending until finding another support level. On the other hand, a resistance level is where the price may find opposition as it rises. Again, the price is more likely to "bounce off" at this level, and if it finally breaches this level, the price will rally more easily until it meets the next resistance

The current resistance levels are:

  • R1: $180.05 (4.6% above)
  • The current supports are:

  • S1: $171.13 (-0.59% below)
  • S2: $170.73 (-0.82% below)
  • S3: $154.67 (-10.15% below)
  • Bollinger bands

    The so-called Bollinger bands are a widely known technical strategy designed by John Bollinger. Fundamentally, the Bollinger Bands are lines that flow around a moving averagediffering in distance from the bottom to the top depending on market volatility. They are usually plotted by an interval of two standard deviations, above and below, from a moving average line. Bollinger himself recommends the moving average period to be 20

    Since the price surpassed the upper band on October 13, the price sliced by 1.83%

    LOW RSI chart

    Relative strength index

    The RSI (Relative Strength Index) is an oscillator-type indicator that gauges price action to spot when the share or financial asset is overbought or oversold. Like other oscillation indicators, the RSI moves in a range between 0% and 100%. J. Welles Wilder introduced the relative strength indicator in 1978 and since then it has been widely used by traders

    The RSI dropped below the overbought level of 70 in early September after just crossing to the overbough zone for 1 day (weak signal). The RSI reading yesterday was 55.31. Since RSI lost the overbought zone, Lowe's stock inched a 1.31%

    LOW RSI chart

    Earnings and financials

    In mid-August, Lowe's ($LOW) had the shareholders call and presented the fiscal 2nd-quarter report. LOW topped Wall St estimates and reported an EPS of $3.75, that is a 27.12% better than expected compared to the estimates of $2.95.

    Same quarter one year ago, reported EPS was $2.15, so recently posted EPS is an increase of 74.42%.

    LOW ($LOW) is presenting Q3 financial report on mid next November. Analysts forecast earnings per share (EPS) of $1.88, that is a 49.87% less than previous quarter.

    LOW revenues and profits chart