LOW stock: buy or sell
Updated on:
May 17th, 2021
2
LOW stock brief
- Lowe's closed last Friday at $198.91 after slightly moving a -0.71%.
- Lowe's is presenting its earnings report on Wednesday
- The stock is configuring an uptrend pattern since last March, when it bottomed at $150.40. This rally marked a 32.25% gain
- Jefferies Financial Group posted a strong bullish rating for Lowe's last Friday, with a forecast of $247.00
- Lowe's Companies, Inc., together with its subsidiaries, operates as a home improvement retailer in the United States and internationally.
Should I buy Lowe's 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?
Currently, Lowe's stock doesn't match any of these trading strategies, so our recommendation is not to buy now. This doesn't mean $LOW will slide in coming sessions, or it will not rise higher. Simply, it doesn't match our recommended trading systems
Should I sell Lowe's stock?
"To sell or not to sell", if you are holding Lowe's shares?. Trading strategies allow us to avoid rash decisions based on our emotions or the buzz that surrounds the market. Our trading system selects very simple strategies to guide us on when is a good time to sell our shares. Be aware that these strategies should not be used for shorting $LOW stock
A guiding principle is that you should not hold an operation that leads to higher than expected losses at the time of purchase. When to sell shares should always be determined by the stop-loss (automatic or manual)
Is it time to sell Lowe's stock?
Currently, Lowe's stock doesn't match any of our preferred sell setups, so if you own Lowe's stock and your operation is in profit probably is not time to sell now
Lowe's ratings
In the last 30 days, 10 analyst ratings were published for Lowe's
| Brokerage firm | Rating |
|---|---|
| Apr 19th, 2021 | |
| JPMorgan Chase & Co. | Neutral |
| Loop Capital | |
| Apr 20th, 2021 | |
| Atlantic Securities | Neutral → Buy |
| Apr 21st, 2021 | |
| Zelman & Associates | |
| Apr 26th, 2021 | |
| JPMorgan Chase & Co. | Neutral |
| May 4th, 2021 | |
| Citigroup | Neutral |
| May 5th, 2021 | |
| Wells Fargo & Company | Buy |
| May 12th, 2021 | |
| Morgan Stanley | Buy |
| May 13th, 2021 | |
| Oppenheimer | |
| May 14th, 2021 | |
| Jefferies Financial Group | |
Lowe's stock analysis
Since last March, Lowe's has been printing an uptrend that so far marked an amazing 32.25%. Rising peaks and troughs can be seen easily on a chart and how price offered very few buy points on the breakouts. Latest pullback was in late April, when price bounced at $195.27. Now, the price trades in a consolidation between its last top ($215.22) and its last bottom ($195.27)
SMAs overview
Supports and resistances
The current resistances are:
The current support levels are:
Bollinger bands
Since the price surpassed the upper band on May 10, the price dropped by 7.58%. The price is trading very close to the lower Bollinger band, signaling some level of oversold in recent sessions. This is not a buy point, as price can trade in these levels for many days and weeks
Relative strength index
The RSI dropped below the overbought level of 70 last Tuesday after just crossing to the overbough zone for a single day (weak signal). The RSI reading last Friday was 50.32. Lowe's shares collapsed a 5.87% since RSI lost the overbought zone
Lowe's stock price history
Lowe's started trading on Mar 17th, 1980 priced at $0.00 per share1. Since then, LOW stock surged by -, with an average of 0.00% per year. If you had invested thousand dollars in Lowe's stock on the IPO, it would be valued $inf today.
1: Adjusted price after possible price splits or reverse-splits
Price target for Lowe's stock
Nobody knows how much a share will be priced tomorrow. Banks and financial organisations publish their analysis predicting how a stock will performance in the future.
Along with buy or sell recommendations, brokerage institutions post their price forecasts based on the stock price action and the company fundamental data. Most of these estimates follow the publication of new fundamental information by the company, and usually. If you are a small investor you shouldn't trade based on these predictions.
The average price target for Lowe's stock calculated from the table below is $226.22. Lowe's closed at $198.91 last Friday, that is a 12.07% than the forecasted price.
| Brokerage firm | Price target |
|---|---|
| Apr 19th, 2021 | |
| JPMorgan Chase & Co. | $177.00 → $204.00 |
| Loop Capital | $195.00 → $220.00 |
| Apr 20th, 2021 | |
| Atlantic Securities | $240.00 |
| Apr 21st, 2021 | |
| Zelman & Associates | Not available |
| Apr 26th, 2021 | |
| JPMorgan Chase & Co. | $177.00 → $204.00 |
| May 4th, 2021 | |
| Citigroup | $195.00 → $239.00 |
| May 5th, 2021 | |
| Wells Fargo & Company | $210.00 → $225.00 |
| May 12th, 2021 | |
| Morgan Stanley | $210.00 → $222.00 |
| May 13th, 2021 | |
| Oppenheimer | $235.00 |
| May 14th, 2021 | |
| Jefferies Financial Group | $200.00 → $247.00 |
Earnings and financials
LOW ($LOW) is hosting the quarterly earnings call on Wednesday. Analysts forecast of $2.54, that is a 90.98% higher than previous quarter. Revenue estimates are $23.4 billion.
In case you are a shareholder of Lowe's stock, you should review your stop-loss, as financial report release date has higher than usual volatility. You can find more details about the earnings call and the financial reports on the Investor Relations section of its website: http://www.lowes.com.
Last February, Lowe's ($LOW) had the investors event and posted the report. LOW topped Wall St estimates and reported of $1.33, that is a 11.76% better than expected versus the previous predictions of $1.19. Aligned to this, reported revenues were $20.3 billion versus estimates of $19.2 billion.
Same quarter one year ago, reported EPS was $0.94, so recently posted EPS is an improvement of 41.49%. Turnover skyrocketed a 26.73% on an annualized basis in the , from $160.3B to $203.1B last quarter.Lowe's competitors
Lowe's belongs to the Home Improvement Retail industry, where it has industry peers.
Lowe's most relevant competitors are:
| Company | Market cap | Rating | Bullish ratings1 |
|---|---|---|---|
| Lowe's ($LOW) | $131.2B | Buy | 5 |
| Home Depot ($HD) | $303.7B | Buy | 7 |
| Builders FirstSource (BLDR) | $8.7B | Buy | 6 |
| Lumber Liquidators (LL) | $730.3M | Neutral | 0 |
1 In the last 30 days.
Lowe's performance
To better understand Lowe's performance you must compare its gains with other related stocks in same sector or industry.. For Lowe's, the benchmark is made against Home Depot, Builders FirstSource and Lumber Liquidators.
| Company | 1m | 3m | 6m |
|---|---|---|---|
| Lowe's ($LOW) | -3.40% | 13.20% | 25.70% |
| Home Depot ($HD) | -0.40% | 17.60% | 15.70% |
| Builders FirstSource (BLDR) | -2.60% | 9.00% | 40.30% |
| Lumber Liquidators (LL) | -11.10% | -16.90% | -7.20% |
Important:
The viewpoints given in this article are personal and should not be followed as recommendations for you to buy or sell stocks. The author of this document does not know the particular 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 Viewpoints are published for learning purposes onlyLOW summary
| Friday, May 14th, 2021 | |
|---|---|
| Open | $201.71 |
| Close | $198.91 |
| Day range | $197.22 - $202.22 |
| Previous close | $200.34 |
| Session gain | -0.71% |
| Average true range | $6.00 |
| 50d mov avg | $190.96 |
| 100d mov avg | $179.01 |
| 200d mov avg | $169.38 |
| Earnings date | May 19th, 2021 |