LOW stock: buy or sell?
Updated on:
September 20th, 2019
5
Lowe's Companies, Inc. operates as a home improvement company in the United States, Canada, and Mexico. It offers a line of products for maintenance, repair, remodeling, and decorating.
Should I buy LOW stock?
You can't be a successful trader if you don't follow a methodolgy or system that assist you in choosing companies and the correct market timing. That's why is so important to choose your own trading plan that fits your character as inversor. There are thousands of trading strategies for you to choose, but at Stocks2.com we prefer those that are simple but successful.Currently, Lowe's Companies stock doesn't match any of these trading strategies, so our recommendation is not to buy.
| Buy setup | Elegible |
|---|---|
| New all-time high | No |
| New 52 week high | No |
| Price crossing up 200d MA | No |
| 100d MA crossing up 200d MA | No |
Is Lowe's Companies stock a buy?
Banks and financial institutions publish stock ratings everyday.
At Stocks2.com, we collected 15 ratings published for LOW stock in the last 30 days. The general sentiment of these ratings is bullish for LOW stock, with 10 positive ratings.| Date | Analyst / Broker | Previous rating | Current rating |
| 2019-9-16 | Wedbush | Neutral | Outperform |
| 2019-9-16 | Royal Bank of Canada | n/a | Outperform |
| 2019-9-13 | Citigroup | n/a | Buy |
| 2019-8-22 | Wells Fargo & Co | n/a | Outperform |
| 2019-8-22 | Wedbush | n/a | Neutral |
| 2019-8-22 | UBS Group | n/a | Buy |
| 2019-8-22 | Telsey Advisory Group | n/a | Outperform |
| 2019-8-22 | Morgan Stanley | n/a | Overweight |
| 2019-8-22 | Loop Capital | n/a | Hold |
| 2019-8-22 | KeyCorp | n/a | Overweight |
| 2019-8-22 | Credit Suisse Group | n/a | Neutral |
| 2019-7-11 | Goldman Sachs Group | Buy | Buy |
| 2019-6-24 | Barclays | n/a | Equal Weight |
| 2019-6-14 | Cfra | n/a | Hold |
| 2019-5-24 | SunTrust Banks | Positive | Buy |
LOW stock analysis
Daily outlook
Lowe's Companies depreciated an unpleasant -0.81% and closed at $110.96.
Shares of Lowe's Companies ended today at $110.96 and depreciated an unpleasant -0.81%. In the last 30 days when LOW stock price broke up the SMA200d line, it gained $13.09 (13.37%). From a daily outlook perspective, LOW is drawing an uptrend of rising tops and rising bottoms. Since its last top on Sep 10th at $115.96, price slid and bounced up back from $110.88. Breaking down under $110.88 would cancel the current uptrend and it might slide further to test lower supports. Note that $115.96 might act as a resistance line. If Lowe's Companies breakouts over $115.96 with average or higher volume, this would be a clear signal that the uptrend resumes. In the last 11 days when SMA50d and SMA100d crossed up, LOW price slipped $-3.75 per share (-3.27%).
Weekly outlook
Lowe's Companies shares slightly fell -2.12% this week, ending at $110.96. Late August LOW boosted a phenomenal 5.18% in just one week.
Since mid August when LOW stock price broke up the SMA40w line, it gained $17.04 (18.14%). Since late April when SMA20w and SMA40w crossed up, LOW price slipped $-1.69 per share (-1.50%). Far behind is the all-time high Lowe's Companies hit by mid April but price is just -5.24% below that top.
LOW stock price history
LOW IPO was on July 9th, 1980 at $0.00 per share1. Since then, LOW stock surged a inf%, with a yearly average of inf%. If you had invested $1,000 in LOW stock in 1980, it would worth $inf today.
1: Adjusted price after possible price splits or reverse-splits.
LOW stock historical price chart
LOW stock reached all-time highs on April with a price of $117.10.
LOW stock price target is $120.60
How much a stock will be priced tomorrow or next week is quite unpredictable However, banks and other financial institutions analysts, with the help of lots of data and algorithms do their best to predict the stock prices movement. We do not recommend to follow these stock price predictions without a critical thinking from your side, as their accuracy is usually low. We found 15 price targets for Lowe's Companies stock released in the last 30 days:| Date | Analyst / Broker | Action | Previous target | Current target | Diff |
| 2019-9-16 | Wedbush | Upgrades | $115.00 | $135.00 | 17.4% |
| 2019-9-16 | Royal Bank of Canada | Raises Target | $123.00 | $129.00 | 4.9% |
| 2019-9-13 | Citigroup | Raises Target | $122.00 | $137.00 | 12.3% |
| 2019-8-22 | Wells Fargo & Co | Reiterates | $110.00 | $125.00 | 13.6% |
| 2019-8-22 | Wedbush | Reiterates | $105.00 | $115.00 | 9.5% |
| 2019-8-22 | UBS Group | Raises Target | $115.00 | $125.00 | 8.7% |
| 2019-8-22 | Telsey Advisory Group | Raises Target | $116.00 | $120.00 | 3.4% |
| 2019-8-22 | Morgan Stanley | Raises Target | $123.00 | $130.00 | 5.7% |
| 2019-8-22 | Loop Capital | Raises Target | $6.67 | $105.00 | 1474.2% |
| 2019-8-22 | KeyCorp | Reiterates | $120.00 | $125.00 | 4.2% |
| 2019-8-22 | Credit Suisse Group | Reiterates | $99.00 | $114.00 | 15.2% |
| 2019-7-11 | Goldman Sachs Group | Initiates | n/a | $119.00 | - |
| 2019-6-24 | Barclays | Raises Target | $95.00 | $105.00 | 10.5% |
| 2019-6-14 | Cfra | Reiterates | n/a | $105.00 | - |
| 2019-5-24 | SunTrust Banks | Reiterates | n/a | $120.00 | - |
| (in average) | $104.10 | $120.60 | 16.0% |
Financials and fundamental analysis
Earnings date and Earnings per Share
On February, Lowe's Companies presented its financial report, close to analysts' consensus and posted a $0.80 Earnings per Share. Unfortunately, reported EPS is not yet available in our database.| Quarter | Reporting date | Estimated EPS | Actual EPS | Surprise |
|---|---|---|---|---|
| 2017-Q2 | - | n/a | 1.05 | n/a |
| 2017-Q3 | - | n/a | 1.68 | n/a |
| 2017-Q4 | 2017-11-21 | 1.03 | 1.05 | 1.9% |
| 2018-Q1 | 2018-02-28 | 0.88 | 0.74 | -15.9% |
| 2018-Q2 | 2018-05-23 | 1.22 | 1.19 | -2.5% |
| 2018-Q3 | 2018-08-22 | 2.02 | 2.07 | 2.5% |
| 2018-Q4 | 2018-11-20 | 0.97 | 1.04 | 7.2% |
| 2019-Q1 | 2019-02-27 | 0.8 | 0.8 | 0.0% |
| 2019-Q2 | - | n/a | n/a | n/a |
| 2019-Q3 | - | n/a | n/a | n/a |
Annual financial results
In 2019, Lowe's Companies annual turnover gained a decent 3.92% to $71,309.00 M dollars from $68,619.00 marked in 2018. In contrast, its income margin (compared to revenues) decreased to 3.25%, that is $2,314.00 million.| Year | Sales | YoY | Income/(margin) | YoY |
|---|---|---|---|---|
| 2014 | $53,420 M | - | $2,270 M4.2% | - |
| 2014 | $56,220 M | 5.24% | $2,680 M4.8% | 18.06% |
| 2015 | $56,223 M | 0.01% | $2,698 M4.8% | 0.67% |
| 2015 | $59,070 M | 5.06% | $2,530 M4.3% | -6.23% |
| 2016 | $59,074 M | 0.01% | $2,546 M4.3% | 0.63% |
| 2016 | $65,020 M | 10.07% | $3,060 M4.7% | 20.19% |
| 2017 | $65,017 M | 0.00% | $3,091 M4.8% | 1.01% |
| 2017 | $68,620 M | 5.54% | $3,440 M5.0% | 11.29% |
| 2018 | $68,619 M | 0.00% | $3,447 M5.0% | 0.20% |
| 2019 | $71,309 M | 3.92% | $2,314 M3.2% | -32.87% |
Quarterly financial results
Lowe's Companies reported $15,647.00 M in sales for 2019-Q1, a -10.15% decline compared to previous quarter. Reported quarter income marked $-824.00 million with a profit margin of -5.27%. Profit margin slipped a -8.88% compared to previous quarter when profit margin was 3.61%. When comparing turnover to same quarter last year, Lowe's Companies sales marked a tiny move and stayed constant a 0.99%. Looking back to recent quarterly results, Lowe's Companies posted 2 positive quarters in a row.| Quarter | Sales1 | QoQ2 | Income1/(margin) | QoQ2 |
|---|---|---|---|---|
| 2017-Q2 | $16,860 M | - | $600 M3.6% | - |
| 2017-Q3 | $19,500 M | 15.66% | $1,410 M7.2% | 135.00% |
| 2017-Q4 | $16,770 M | -14.00% | $872 M5.2% | -38.16% |
| 2018-Q1 | $15,494 M | -7.61% | $554 M3.6% | -36.47% |
| 2018-Q2 | $17,360 M | 12.04% | $988 M5.7% | 78.34% |
| 2018-Q3 | $20,888 M | 20.32% | $1,520 M7.3% | 53.85% |
| 2018-Q4 | $17,415 M | -16.63% | $629 M3.6% | -58.62% |
| 2019-Q1 | $15,647 M | -10.15% | $-824 M-5.3% | -231.00% |
Lowe's Companies ownership
When you are planning to invest in shares of a company, it's always worth to overview its ownership structure.Management staff in all public traded companies that hold equity is required to report every transaction to the SEC. For Lowe's Companies, 0.17% of all outstanding shares are owned by its staff.
In case of Lowe's Companies stock, 77.23% of its shares are held by institutions (mutual funds, pension funds, big banks and other large financial institutions). Bearish positions for LOW stock account 0.00%, no big difference from last month.
For a better understanding, the following table shows ownership data compared to other related stocks:
| LOW | BLDR | HD | LL | SHOS | |
|---|---|---|---|---|---|
| Market cap | $86.1 B | $2.4 B | $250.9 B | $254.6 M | $86.0 M |
| Total shares | 776.0 M | 115.5 M | 1,100.0 M | 28.7 M | 22.7 M |
| Float shares | 769.9 M | 113.7 M | 1,090.0 M | 26.3 M | 7.9 M |
| - Institutional holdings (%) | 77.2% | 93.6% | 72.2% | 0.0% | 45.6% |
| - Insider holdings (%) | 0.2% | 2.1% | 0.1% | 10.5% | 38.6% |
| Shares in short selling | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% |
LOW summary
| Friday, September 20th, 2019 | |
|---|---|
| Open | $112.93 |
| Close | $110.96 |
| Day range | $110.95 - $113.19 |
| Previous close | $111.87 |
| Session gain | -0.81% |
| Average true range | $2.03 |
| 50d mov avg | $105.22 |
| 100d mov avg | $103.17 |
| 200d mov avg | $101.59 |
| Daily pattern | lb03a |
| Weekly pattern | |
Lowe's Companies performance
Performance as an absolute value is never valid if it's not benchmarked against competitors or related stocks in the industry. In the following table, we compare Lowe's Companies to Builders FirstSource, Home Depot, Lumber Liquidators and Sears Hometown and Outlet Stores:| Stock | 3m | 6m | 12m |
|---|---|---|---|
| LOWLowe's Compan... | 10.63% | 6.74% | -3.16% |
| BLDRBuilders FirstSou... | 34.82% | 63.82% | 31.12% |
| HDHome Depot | 9.61% | 22.45% | 10.29% |
| LLLumber Liquidator... | -20.66% | -14.71% | -50.00% |
| SHOSSears Hometown an... | 48.05% | 87.62% | 13.13% |