4 Reasons to Go Long On Lowe’s Companies Inc. [LOW]

Lowe’s Companies Inc. [LOW] shares are up more than 47.56% this year and recently increased 0.03% or $4.39 to settle at $166.65. Analysts expect LOW to grow earnings at a 21.80% annual rate over the next 5 years. LOW has a short ratio of 1.52. This implies that the market is currently less bullish on the outlook for LOW.

Analyst Birdseye View:

The most recent analyst activity for Lowe’s Companies Inc. [NYSE:LOW] stock was on August 25, 2020, when it was Reiterated with an Overweight rating from Morgan Stanley, which also raised its 12-month price target on the stock from $160 to $190. Before that, on September 18, 2020, Oppenheimer Recapitulated a Perform rating and elevated its amount target to $180. On August 20, 2020, Wedbush Reiterated an Outperform rating and boosted its price target on this stock from $165 to $180. On August 20, 2020, Telsey Advisory Group Reiterated an Outperform rating and increased its price target from $175 to $185. On August 20, 2020, Robert W. Baird Reiterated an Outperform rating and increased its price target to $190. On August 20, 2020, RBC Capital Mkts Reiterated an Outperform rating and boosted its amount target on this stock to $188. On August 20, 2020, KeyBanc Capital Markets Reiterated an Overweight rating and boosted its target amount on this stock from $165 to $180. On August 20, 2020, Goldman Reiterated a Buy rating and improved its amount target to $176.

In the past 52 weeks of trading, this stock has oscillated between a low of $60.00 and a peak of $171.72. Right now, the middling Wall Street analyst 12-month amount mark is $185.00. At the most recent market close, shares of Lowe’s Companies Inc. [NYSE:LOW] were valued at $166.65. According to the average price forecast, investors can expect a potential return of 1.69%.

FUNDAMENTAL ANALYSIS

Lowe’s Companies Inc. [NYSE:LOW] most recently reported quarterly sales of 27.3 billion, which represented growth of 30.10%. This publicly-traded organization’s revenue is $225,463 per employee, while its income is $13,338 per employee. This company’s Gross Margin is currently 32.90%, its Operating Margin is 10.50%, its Pretax Margin is +7.79, and its Net Margin is +5.92. Continuing to look at profitability, this corporation’s Return on Assets, Equity, Whole Principal & invested Principal is sitting at 11.29, 151.99, 28.86 and 20.96 respectively.

If looking now at the Principal structure of this organization, it shows its whole liability to the whole Principal at 92.33 and the whole liability to whole assets at 57.94. It shows enduring liability to the whole principal at 80.52 and enduring liability to assets at 0.51 while looking for an extended time period.

Readers are usually of view to make a close observation to the indicators that support and make resistance before moving to any particular stock. As of now, the company’s stock is sitting at 161.66 points at 1st support level, the second support level is making up to 161.05. But as of 1st resistance point, this stock is sitting at 163.42 and at 164.57 for 2nd resistance point.

Lowe’s Companies Inc. [LOW] reported its earnings at $3.75 per share in the fiscal quarter closing of 7/30/2020. The Analysts for Wall Street were expecting to report its earnings at $2.95/share signifying the difference of 0.8 and 27.10% surprise value. Comparing the previous quarter ending of 4/29/2020, the stated earnings were $1.77 calling estimates for $1.32/share with the difference of 0.45 depicting the surprise of 34.10%.

Important Ratio’s To Watch

Meanwhile, turning our focus to liquidity, the Current Ratio for Lowe’s Companies Inc. [NYSE:LOW] is 1.30. Likewise, the Quick ratio is also the same, showing Cash ratio at 0.06. Now if looking for a valuation of this stock’s amount to sales ratio it’s 1.25, it’s amount to book ratio is 44.98 and showing 21.56 of P/E (TTM) ratio.

Insider Stories

Shifting our attention to insider trading activity, in the last 3 months, Lowe’s Companies Inc. [NYSE:LOW] has had 3 insider purchases representing 54,282 shares 4 insider sales representing 62,838 shares. During the past six months, there have been 13 insider buys representing 148,923 shares and 6 insider sales representing 65,878 shares. The most recent insider trade was by MCCANLESS ROSS W, EVP, GC & Corp. Sec., and it was the sale of 62838.0 shares on Aug 26. Ellison Marvin R, the President and CEO, completed a purchase of 10000.0 shares on Mar 06.

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