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LOW

CONSUMER CYCLICAL

Lowe's Companies Inc

AI Stock Analysis· Bearish
Jun 22 · 7:53 PM ET

Lowe's Companies Inc (LOW) is currently trading at $214.40, down 3.51% today, reflecting a bearish sentiment in the market. The stock's technical indicators suggest a cautious stance, with a SELL signal at a confidence level of only 32%. The Relative Strength Index (RSI) stands at 45.1, indicating that the stock is neither overbought nor oversold, while the 20-day simple moving average (SMA) is slightly below the current price at $214.90. The 50-day SMA at $226.71 and the 200-day SMA at $245.31 point to a declining trend, reinforcing the negative momentum in the short to medium term. The MACD reading of -1.38, with a signal line at -2.77, further supports the downward pressure, as the histogram shows a positive divergence of 1.39, suggesting potential for a reversal but lacking confirmation.

From a fundamental perspective, Lowe's exhibits some impressive metrics, with a market capitalization of $124.59 billion and a price-to-earnings (P/E) ratio of 18.8, which is reasonable in comparison to its forward P/E of 17.7. The company boasts a robust revenue growth of 10.3% quarter-over-quarter and an astonishing 312.2% year-over-year, though the earnings per share (EPS) growth has shown a slight decline of 0.7%. The gross margin at 3347.6% and operating margin at 1176.7% highlight strong profitability; however, the return on equity (ROE) is notably at 0.0%, indicating potential inefficiencies in generating returns for shareholders. Analysts remain optimistic, with a consensus rating of BUY based on 5 strong buy, 19 buy, and 10 hold ratings, and a target price of $263.73, suggesting significant upside potential from current levels.

Lowe's next earnings report is not scheduled within the next 30 days, which limits immediate catalysts for the stock. However, investors should closely monitor the trend in EPS growth, as the recent decline could point to broader issues in profitability. Additionally, the recent insider selling, including an EVP's sale of $559,575 worth of stock, raises questions about the management's confidence in the company's near-term outlook. A specific point of interest will be how Lowe's manages its margins and whether revenue growth can be sustained in the coming quarters, as these factors will be critical in shaping investor sentiment going forward.

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52-Week Range

$203.40$291.66

$215.85

Fundamentals

Market Cap$124.6B
P/E Ratio18.8
EPS$11.82
Dividend Yield2.21%
Dividend / Share$4.80
ROE
Profit Margin7.5%
Debt / Equity

Trading

Volume469K
Avg Volume (10D)
Shares Outstanding560.7M

LOW News

205 articles

Price Data

Open$213.85
Previous Close$214.40
Day High$216.50
Day Low$212.14
52 Week High$291.66
52 Week Low$203.40

About Lowe's Companies Inc

Lowe's Companies, Inc. is an American retail company specializing in home improvement. Headquartered in Mooresville, North Carolina, the company operates a chain of retail stores in the United States and Canada.

276.0K employees
Listed June 1, 1972
CONSUMER CYCLICALHOME IMPROVEMENT RETAIL

Company Details

Security TypeCommon Stock
ExchangeNYSE
CurrencyUSD
Round Lot
SICHOME IMPROVEMENT RETAIL
CIK
Composite FIGI
Share Class FIGI