Lowe's Companies Inc (LOW)

LOW (NYSE:Retail) EQUITY
$80.99
pos +0.34
+0.42%
Today's Range: 80.43 - 81.18 | LOW Avg Daily Volume: 4,973,200
Last Update: 07/25/16 - 4:02 PM EDT
Volume: 2,845,803
YTD Performance: 6.06%
Open: $80.67
Previous Close: $80.65
52 Week Range: $62.62 - $83.65
Oustanding Shares: 886,104,716
Market Cap: 71,021,292,987
6-Month Chart
TheStreet Ratings Grade for LOW
Buy Hold Sell
A+ A A- B+ B B- C+ C C- D+ D D- E+ E E- F
TheStreet Ratings is the source for accurate ratings that you can rely upon to make sound, informed financial decisions. Click here to find out about our methodology.
Analysts Ratings
Historical Rec Current 1 Mo. Ago 2 Mo. Ago 3 Mo. Ago
Strong Buy 10 11 11 11
Moderate Buy 2 2 2 1
Hold 5 5 4 4
Moderate Sell 0 0 0 0
Strong Sell 0 0 0 0
Mean Rec. 1.68 1.64 1.56 1.53
Latest Dividend: 0.35
Latest Dividend Yield: 1.75%
Dividend Ex-Date: 07/18/16
Price Earnings Ratio: 26.63
Price Earnings Comparisons:
LOW Sector Avg. S&P 500
26.63 26.60 12.90
Price Performance History (%Change):
3 Mo 1 Yr 3 Y
6.05% 19.59% 80.51%
GROWTH 12 Mo 3 Yr CAGR
Revenue 5.10 0.20 0.05
Net Income -5.60 0.30 0.09
EPS 0.70 0.60 0.17
Earnings for LOW:
EBITDA 6.56B
Revenue 59.07B
Average Earnings Estimates
Qtr (07/16) Qtr (10/16) FY (01/17) FY (01/18)
Average Estimate $1.41 $0.95 $4.03 $4.68
Number of Analysts 11 10 11 12
High Estimate $1.44 $1.00 $4.14 $5.02
Low Estimate $1.33 $0.88 $3.80 $4.30
Prior Year $1.20 $0.80 $3.29 $4.03
Growth Rate (Year over Year) 17.20% 19.25% 22.46% 16.16%
Chart Benchmark
Average Frequency Timeframe
Indicator Chart Scale  
Symbol Comparison Bollinger Bands
The $11.3 billion deal between the two paint companies may give them greater power against Home Depot and Lowe's.

My Takeaways and Observations Real Money Pro($)

Inside day for the markets today. Ns over Ss and Rs (Russell was quite weak, down $1.54, probably related to biotech/health care. Note: iShares Russell 2000 (IWM) short is a recent Best Ideas List inclusion as a short.  The U.S. dollar weakened, though multinationals/staples -- including Procter & Gamble (PG), Colgate-Palmolive (CL) and Kimberly-Clark (KMB) -- were mixed.  Crude oil dropped 71 cents to $36.44. Natural gas rose by three cents. Gold fell by $14.70, continuing its recent correction. Silver was down an outsized 25 cents. (Boca Biff called, and he is squirming now. Stay tuned). Agricultural commodities:  wheat, corn and oats down small. Bonds were essentially unchanged, with  yields up a basis point. Municipals were also flattish and closed-end municipal funds sold off. High yield was lower. However, Blackstone/GSO Strategic Credit Fund (BGB) forged ahead by six cents and now stands up about 10% from January lows. I continue to buy. Credit is underpriced. If it isn't, stocks are materially overpriced!  Banks continued an orderly drop, but comparatively small. I would love to see a more meaningful decline because I want to re-up my financial holdings, with an intermediate-term view. Hit me with your best shot!  Life insurance starting to roll over? I am long Hartford Financial Services Group (HIG) and short Lincoln National (LNC) and MetLife (MET). Brokerages, recently sold and taken off the Best Ideas List, appear to be rolling over for another loss. Morgan Stanley (MS) was down 50 cents and Goldman Sachs (GS) down $1.35. Private equity is rolling over, too. Blackstone Group (BX) was down 40 cents. Old tech was unchanged. Media weakness; my shorts Comcast (CMCSA) and Disney (DIS) were lower. Biowreck -- down nearly 4%.  Retail was mixed, with remodeling in the form of Home Depot (HD) and Lowe's (LOW) was a highlight. I am market-neutral in the space. (T)FANG continues to exert some leadership. Tesla (TSLA) and Amazon (AMZN) were strong components. NOSH was tasty, as all four components were better. CRABBY flatlined. Recent sales of Potash (POT), Twitter (TWTR) and Radian Group (RDN) are looking OK for now. I like the short set-up now; a tepid rally from the lows. SPDR S&P 500 ETF (SPY) was down $1.30 at the worst, rallied to be only down 40 cents and was off 60 cents near the close. I added to ProShares UltraShort S&P 500 ETF (SDS) small. A trade, not a long-term lease!  I sold Best Idea long Best Buy (BBY). Yesterday's Trades of the Week -- inverse Nasdaq ETFs ProShares Short QQQ (PSQ), ProShares UltraShort QQQ (QID) and ProShares UltraPro Short QQQ (SQQQ) -- were up marginally. Some good stuff on RealMoneyPro today: 1. Mo' Cross on gold. But Skip Raschke prefers platinum over gold. (It's a no-brainer? Uh ho! I hate that term, as respectfully nothing is a no-brainer, Carl Icahn!)  2. Tim "Not Phil or Judy" Collins sees yellow flags.  3. James Passeri on
Three initiatives at Penney's could kill off long-time rival SHLD.
So many conference calls, so little time.
The home improvement retailer's chart is increasingly bearish. 
U.S. futures are declining amid increased volatility in oil prices.
Bullish
Feb 16, 2016 | 7:19 AM EST
LOW was placed on the Analyst Focus List, JP Morgan said. $87 price target. Execution is improving and the company is buying back debt....
As I wrote in my opener, "At a Good Turn, You Will Not Want to Buy," I chronicled gems from legendary technical analyst Wally Deemer and expressed the view that bottoms are rarely accompanied by optimism and buying -- though I am sure the storytellers in the business media likely already will have forgotten their Cassandra-like warnings of yesterday. We closed right on my Fair Market Value calculation of 1864! We closed nearly 60 handles from yesterday's lows/test. I consider today a successful test of the 1812 capitulation low of yesterday and 3 ½ weeks ago. Today's bounce showed how many were offsides and essentially immobilized by the recent declines. Many were clearly short equities and/or crude, and today's up move demonstrated how conservatively positioned the longs are. The contrary worked this week. Does that mean we go straight up?  Obviously not. As I posted, I thought it prudent to scale back my large long exposure to between small and medium in size in front of the weekend. Frankly, I want to enjoy myself and not worry about large positions. My long "Trade of the Week," Citigroup (C), at $37.70 provided no profits but it could have been worse; it closed the week down 15 cents after some drama!  My short "Trade of the Week," iShares 20+ Year Treasury Bond ETF (TLT), was a big win of $4 in about 24 hours. I closed it and my long ProShares UltraShort 20+ Year Treasury (TBT) out.  The U.S. dollar strengthened. Crude was the standout asset class, up by $2.94 to $29.15. Gold gave back $8.60 Agricultural commodities flatlined, with wheat, corn, sugar, soybeans and oats unchanged. Lumber was up $2.10. Treasuries were nine to 10 basis points higher at the longer end  and the yield curve began to steepen from its flatness. Municipals got hit and so did closedend municipal bond funds. High yield was quite strong, maybe the largest gains in weeks. iShares iBoxx $ High Yield Corporate Bond ETF (HYG) was up $1.17 and SPDR Barclays High Yield Bond ETF (JNK) was up 47 cents. Blackstone/GSO Strategic Credit Fund (BGB) disappointed and was flat; I added to an already large holding. Jamie Dimon set the positive tone for banks this morning and so did the Deutsche Bank (DB) bond tender as well as the improvement in crude oil, and boy did the sector respond, with gains of 6% to 8%, albeit from depressed levels. Citigroup rose $2.50, JPMorgan Chase (JPM) was up $4.40 for its best day in five years, and Wells Fargo (WFC) and Comerica (CMA) also rose. I purchased depressed and controversial DB to add to my long list of bank longs. Brokerages shined, with 3% to 5% gains; see Dan Loeb on Morgan Stanley (MS) below. Life insurance stocks reversed yesterday's losses. I covered long-time life insurance shorts and purchased calls after 40% gains in only a few months. Lincoln National (LNC) and MetLife (MET) remain on my Best Ideas List because I plan to short strength. They're oversold for now, as was the market. I added to Hartford Financial Services Group (HIG) and Allstate (ALL) longs.  Retail was stronger despite some downgrades for Best Buy (BBY) and Bed, Bath and Beyond (BBBY). The stocks are dirt cheap. I continue to hold Macy's (M) -- my favorite -- BBY and BBBY. Remodelers Home Depot (HD) and Lowe's (LOW) had dead-cat bounces. Media, though higher, disappointed in its bounce-back. I remain short with small positions in Comcast (CMCSA) and Disney (DIS). Autos were higher. I covered General Motors (GM) today, but it is still on my Best Ideas List as I am a short-seller on 10% strength. Biotech was up 3%, with Valeant Pharmaceuticals (VRX) and Allergan (AGN) performing better.  My 12-stock biotech basket did well. Large caps Celgene (CELG) and Gilead Sciences (GILD) were $2 to $3 higher. Speculative Acadia Pharmaceuticals (ACAD), Portola Pharmaceuticals (PTLA) and Sage Therapeutics (SAGE) -- now up 10% from yesterday -- were stronger. (T)FANG was conspicuously weak, with negligible gains. Tesla (TSLA) was down on the day. The words in my opener rang true: "The market's former leaders (biotech, Internet, health care and consumer discretionary stocks) all seem to be in an initial leg down, but look like they're oversold and could have a weak bounce, with a test to come later. That could represent an important intermediate-term leadership change." Remember, leadership changes are typically not market-friendly.  Let's watch (T)FANG closely in the days ahead. NOSH members were all higher, but not materially so. CRABBY was happy with C, Radian Group (RDN), ALL and Alleghany (Y) faring well. Dan Loeb's Third Point just filed with 3 million shares of MS. He also increased his position in Dow Chemical (DOW). I sold two-thirds of my SPDR S&P 500 ETF (SPY) long rental and half of my iShares Russell 2000 (IWM) at good prices and for profits. This, coupled with some short covers and additional buys (including ALL, BGB and HIG), moved me from a large to between small and medium in
As days go these days, stocks were on the quiet side. Up down up down up, thus far. The U.S. dollar's weakness has accelerated. Oil vey, more crude weakness -- dropping by $1.46 to $28.23. Gold fell $3.70 for a change, but the strong uptrend remains intact. As I mentioned yesterday, I had reams of analysis but I just couldn't process it in time for the ramp, which is disappointing as I was leaning to go long. In agricultural commodities, wheat, corn and soybeans were flattish. Lumber fell by 0.5%. Government bonds show limited movement, with yields down one or two basis points. Municipal bond prices and yields showed little change, though closed-end municipal bond funds showed some life, with several rising by almost 1%!. High yield was junky, with iShares iBoxx $ High Yield Corporate Bond ETF (HYG) down 45 cents and SPDR Barclays High Yield Bond ETF (JNK) down 21 cents. Blackstone/GSO Strategic Credit Fund (BGB) continued to get hit mildly. Banks exhibited little movement. I added to Citigroup (C), Morgan Stanley (MS) and Bank of America (BAC) today. New Best Ideas List entrants, banks BB&T (BBT) and Regions Financial (RF), traded in the green.  Life insurance stocks were flat; Berkshire Hathaway (BRK.B) was up a beaner. Retail was mixed. Home Depot (HD) and Lowe's (LOW) bounced back after several days of  schmeissing. Wal-Mart (WMT) saw some profit taking and apparel still is weak. Macy's (M) and Bed, Bath and Beyond (BBBY) were slightly higher, but Best Buy (BBY) was a bit lower. The continued fall from grace of Sears Holdings (SHLD) on disappointing results -- it's down around 7% today -- should be a concern to real estate and mall owners. Biotech was uninspiring after recent declines. Valeant Pharmaceuticals (VRX) continues under distribution. Speculative Intrexon (XON) got hit. Allergan (AGN) rallied after yesterday's fall. Regarding autos: I covered my Ford (F) short, but still am short General Motors (GM), which is on my Best Ideas List as a short. Old tech was mixed, with IBM (IBM) a standout loser, down more than $2. Microsoft (MSFT) and Intel (INTC) managed small gains. Media was awful, with Comcast (CMCSA) and Disney (DIS) lower; the latter's earnings are today. Energy stocks got hit with the commodity. Though I covered Schlumberger (SLB) and Exxon Mobil (XOM) shorts for great gains, I should have held those shorts. But who knew $28 oil? Brokerages reversed after being much lower. They're now up on the day. In  "A Few of My Favorite Things," I again highlighted DuPont (DD), which is up another $1, and Procter & Gamble (PG), which is flat. (T)FANG, the object of my scorn in yesterday's opener, had a dead-cat bounce that was unimpressive by any standard. Amazon (AMZN) is still down on the day, and Tesla (TSLA) is barely higher. Alphabet (GOOGL) is unchanged.  NOSH had all four components higher, led by HD (mentioned previously). CRABBY was as flat as the desert. Radian Group (RDN) traded a tad higher, and other stocks made modest moves. Twitter (TWTR) moved ever lower, and the masochist in me purchased it in my pension plan, as I did C, BAC and MS at reasonably good prices. As mentioned, I added to a number of existing longs and re-established a SPY long rental and added a new iShares Russell 2000 (IWM) long. I likely will end the day between small and medium net long. It's lonely being long -- hopefully, my buys become green.

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