Is Lowes Companies Stock a Good Investment?

Lowes Companies Investment Advice

  LOW
To provide specific investment advice or recommendations on Lowes Companies stock, we recommend investors consider the following general factors when evaluating Lowes Companies. This will help you to make an informed decision on whether to include Lowes Companies in one of your diversified portfolios:
  • Examine Lowes Companies' financial health by looking at its balance sheet, income statement, and cash flow statement. Analyze key financial ratios, such as Price-to-Earnings (P/E), Price-to-Sales (P/S), and Price-to-Book (P/B), to determine whether the stock is fairly valued or over/undervalued.
  • Research Lowes Companies' leadership team and their track record. Good management can help Lowes Companies navigate difficult times and make strategic decisions that benefit shareholders and increases its net worth.
  • Consider the overall health of the Home Improvement Retail space and any emerging trends that could impact Lowes Companies' business and its evolving consumer preferences.
  • Compare Lowes Companies' performance and market position to its competitors. Analyze how Lowes Companies is positioned in terms of product offerings, innovation, and market share.
  • Check if Lowes Companies pays a dividend and its dividend yield and payout ratio.
  • Review what financial analysts are saying about Lowes Companies' stock and their price targets. However, remember that analysts' opinions can vary, and their predictions may not always be accurate.
It's important to note that investing in Lowes Companies stock, carries risks, and you should carefully consider your investment goals and risk tolerance before making any investment decisions. Also, remember that it's important for investors to have a long-term perspective and a well-diversified portfolio to manage the impact of stock market volatility on their investments. Below is a detailed guide on how to decide if Lowes Companies is a good investment.
 
Sell
 
Buy
Strong Buy
Macroaxis provides trade recommendations on Lowes Companies to complement and cross-verify current analyst consensus on Lowes Companies. Our advice engine determines the firm's potential to grow exclusively from the perspective of an investor's current risk tolerance and investing horizon. To make sure Lowes Companies is not overpriced, please verify all Lowes Companies fundamentals, including its short ratio, and the relationship between the cash and equivalents and market capitalization . Given that Lowes Companies has a price to book of 321.82 X, we recommend you to check Lowes Companies market performance and probability of bankruptcy to ensure the company can sustain itself in the current economic cycle given your last-minute risk tolerance and investing horizon.

Market Performance

Very WeakDetails

Volatility

Very steadyDetails

Hype Condition

Low keyDetails

Current Valuation

UndervaluedDetails

Odds Of Distress

LowDetails

Economic Sensitivity

Responds to the marketDetails

Investor Sentiment

AlarmedDetails

Analyst Consensus

BuyDetails

Financial Strenth (F Score)

PoorDetails

Financial Leverage

Not RatedDetails

Reporting Quality (M-Score)

Unlikely ManipulatorDetails

Examine Lowes Companies Stock

Researching Lowes Companies' stock involves analyzing various aspects of the company and its industry to make an informed investment decision. The key areas to focus on are fundamentals, business model and competitive advantage. It is also important to analyze trends in revenue, net income, and cash flow, as well as key financial ratios, such as price-to-earnings (P/E), price-to-sales (P/S), and debt-to-equity (D/E). About 77.0% of the company shares are owned by institutional investors. The company recorded earning per share (EPS) of 12.48. Lowes Companies last dividend was issued on the 24th of July 2024. The entity had 2:1 split on the 3rd of July 2006.
To determine if Lowes Companies is a good investment, evaluating the company's potential for future growth is also very important. This may include expanding into new markets, launching new products or services, or improving operational efficiency. Companies with strong growth prospects can be more attractive investments. This aspect of the research should be conducted in the context of the overall market and industry in which the company operates and should include an analysis of growth potential, competitive landscape, and any regulatory or economic factors that could impact the business. Some of the essential points regarding Lowes Companies' research are outlined below:
Lowes Companies generated a negative expected return over the last 90 days
Lowes Companies has a poor financial position based on the latest SEC disclosures
Over 77.0% of the company shares are owned by institutional investors
On 8th of May 2024 Lowes Companies paid $ 1.1 per share dividend to its current shareholders
Latest headline from simplywall.st: Lowes Companies Is Increasing Its Dividend To 1.15

Lowes Companies Quarterly Gross Profit

6.66 Billion

Lowes Companies uses earnings reports to provide investors with an update of all three financial statements, including the income statement, the balance sheet, and the cash flow statement. Therefore, it is also crucial when considering investing in Lowes Companies. Every quarterly earnings report provides investors with an overview of sales, expenses, and net income for the most recent period. It also may provide a comparison to Lowes Companies' previous reporting period. The quarterly earnings reports are usually disseminated to the public via Form 10-Q, which is a legal document filed with the Securities and Exchange Commission every quarter.
6th of March 2024
Upcoming Quarterly Report
View
28th of May 2024
Next Financial Report
View
31st of January 2024
Next Fiscal Quarter End
View
6th of March 2024
Next Fiscal Year End
View
31st of October 2023
Last Quarter Report
View
31st of January 2023
Last Financial Announcement
View
Earnings surprises can significantly impact Lowes Companies' stock price both in the short term and over time. Negative earnings surprises usually result in a price decline. However, it has been seen that positive earnings surprises lead to an immediate rise in a stock's price and a gradual increase over time. This is why we often hear news about some companies beating earning projections. Financial analysts spend a large amount of time predicting earnings per share (EPS) along with other important future indicators. Many analysts use forecasting models, management guidance, and additional fundamental information to derive an EPS estimate. Below are the table of largest EPS Surprises Lowes Companies' investors have experienced.
Reported
Fiscal Date
Estimated EPS
Reported EPS
Surprise
2000-02-18
2000-01-310.090.10.0111 
1999-11-15
1999-10-310.10.110.0110 
1999-05-17
1999-04-300.080.090.0112 
1999-02-22
1999-01-310.070.080.0114 
1998-05-18
1998-04-300.060.070.0116 
1996-05-14
1996-04-300.030.040.0133 
1995-11-13
1995-10-310.040.03-0.0125 
2010-02-22
2010-01-310.120.140.0216 

Lowes Companies Target Price Consensus

We track the performance of the top 100 financial experts across various large and mid-size financial boutiques. Lowes target price is determined by taking all analyst projections and averaging them out. There is no one specific way to measure analysts' performance other than comparing it to past results via a very sophisticated attribution analysis. Lowes Companies' target price projections below should be used in combination with other traditional price prediction techniques such as stock price forecasting, investor sentiment analysis, technical analysis, earnings estimate, and various momentum models.
   36  Buy
Most Lowes analysts issue ratings four times a year, at intervals of three months. Ratings are usually accompanied by a target price to help potential investors understand Lowes stock's fair price compared to its market value. Analysts arrive at stock ratings after researching the public financial statements of Lowes Companies, talking to its executives and customers, or listening to those companies' conference calls.
Macroaxis Advice   Exposure   Valuation

Lowes Companies Target Price Projection

Lowes Companies' current and average target prices are 226.30 and 242.59, respectively. The current price of Lowes Companies is the price at which Lowes Companies is currently trading. On the other hand, Lowes Companies' target price is what analysts think the stock is worth or could sell for in the future. The more significant the discrepancy between the two prices, the more it stimulates investors to act.

Current Price

Lowes Companies Market Quote on 20th of June 2024

Low Price226.3Odds
High Price229.2Odds

226.3

Target Price

Analyst Consensus On Lowes Companies Target Price

Low Estimate220.76Odds
High Estimate269.27Odds

242.59

Historical Lowest Forecast  220.76 Target Price  242.59 Highest Forecast  269.27
Note that most analysts generally publish their price targets in research reports on specific companies, along with recommendations for the company's stock.Although price targets are often quoted in the financial news media, there could be a delay between the publication of the latest analyst outlook on Lowes Companies and the information provided on this page.

Lowes Companies Analyst Ratings

Lowes Companies' analyst stock recommendations are determined by taking an average estimate of all analysts we track and classifying them as Strong Buy, Buy, Hold, Strong Sell, or Sell. Ratings generally communicate what analysts sense about Lowes Companies stock, and they use a lot of effort and time to analyze it and arrive at a rating. That suggests that analyst recommendations are the outcome of an objective and thorough examination of Lowes Companies' financials, market performance, and future outlook by experienced professionals. Lowes Companies' historical ratings below, therefore, can serve as a valuable tool for investors.

Know Lowes Companies' Top Institutional Investors

Have you ever been surprised when a price of an equity instrument such as Lowes Companies is soaring high without any particular reason? This is usually happening because many institutional investors are aggressively trading Lowes Companies backward and forwards among themselves. Lowes Companies' institutional investor refers to the entity that pools money to purchase Lowes Companies' securities or originate loans. Institutional investors include commercial and private banks, credit unions, insurance companies, pension funds, hedge funds, endowments, and mutual funds. Operating companies that invest excess capital in these types of assets may also be included in the term and may influence corporate governance by exercising voting rights in their investments.
Shares
Northern Trust Corp2024-03-31
6.5 M
Legal & General Group Plc2024-03-31
5.1 M
Amvescap Plc.2024-03-31
4.9 M
Ubs Asset Mgmt Americas Inc2024-03-31
4.1 M
Goldman Sachs Group Inc2024-03-31
M
Nuveen Asset Management, Llc2024-03-31
M
Bank Of New York Mellon Corp2024-03-31
M
Aristotle Capital Management Llc2024-03-31
3.9 M
Franklin Resources Inc2024-03-31
3.5 M
Vanguard Group Inc2024-03-31
53.7 M
Blackrock Inc2024-03-31
39.8 M
Note, although Lowes Companies' institutional investors appear to be way more sophisticated than retail investors, it remains unclear if professional active investment managers can reliably enhance risk-adjusted returns by an amount that exceeds fees and expenses.

Lowes Companies' market capitalization trends

The company currently falls under 'Mega-Cap' category with a total capitalization of 129.79 B.

Market Cap

16.95 Billion

Lowes Companies' profitablity analysis

Last ReportedProjected for Next Year
Return On Tangible Assets 0.18  0.11 
Return On Capital Employed 0.42  0.26 
Return On Assets 0.18  0.11 
Return On Equity(0.51) 2.17 
The company has Net Profit Margin of 0.08 %, which implies that it may need a different competitive strategy as even a very small decline in it revenue may erase profits and result in a net loss. This is way below average. In the same way, it shows Net Operating Margin of 0.12 %, which entails that for every 100 dollars of revenue, it generated $0.12 of operating income.
Determining Lowes Companies' profitability involves analyzing its financial statements and using various financial metrics to determine if Lowes Companies is a good buy. For example, gross profit margin measures Lowes Companies' profitability after accounting for the cost of goods sold, while net profit margin measures profitability after accounting for all expenses. Other important metrics include return on assets, return on equity, and free cash flow. By reviewing multiple sources and metrics, you can gain a complete picture of Lowes Companies' profitability and make more informed investment decisions.
The data published in Lowes Companies' official financial statements typically reflect Lowes Companies' business processes, product offerings, services, and other fundamental events. However, there are additional fundamental indicators that are easier to understand and visualize along the underlying realities that are driving Lowes Companies' quantitative information. For example, before you start analyzing numbers published by Lowes accountants, it's essential to understand Lowes Companies' liquidity, profitability, and earnings quality within the context of the Specialty Retail space in which it operates.
Please note, the imprecision that can be found in Lowes Companies' accounting process means that the reasonable investor should take a skeptical approach toward the financial statement analysis of Lowes Companies. Check Lowes Companies' Beneish M Score to see the likelihood of Lowes Companies' management manipulating its earnings.

Evaluate Lowes Companies' management efficiency

Lowes Companies has Return on Asset of 0.1482 % which means that on every $100 spent on assets, it made $0.1482 of profit. This is way below average. Lowes Companies' management efficiency ratios could be used to measure how well Lowes Companies manages its routine affairs as well as how well it operates its assets and liabilities. Return On Equity is likely to climb to 2.17 in 2024, whereas Return On Tangible Assets are likely to drop 0.11 in 2024. At this time, Lowes Companies' Non Currrent Assets Other are fairly stable compared to the past year. Other Current Assets is likely to climb to about 996.5 M in 2024, whereas Non Current Assets Total are likely to drop slightly above 14.2 B in 2024.
Last ReportedProjected for Next Year
Book Value Per Share(25.86) 2.54 
Tangible Book Value Per Share(25.86) 1.42 
Enterprise Value Over EBITDA 12.41  14.68 
Price Book Value Ratio(8.49) 45.80 
Enterprise Value Multiple 12.41  14.68 
Price Fair Value(8.49) 45.80 
Enterprise Value26.8 B28.1 B
The analysis of Lowes Companies' management efficiency is an essential part of evaluating and assessing the financial and operational performance of the entity. It is also vital to analyze Lowes Companies' future growth prospects and the overall market conditions to determine the value and potential of its stock. The analysis involves studying a range of financial metrics such as revenue, earnings, profit margins, cash flow, debt, market share, and external factors such as economic trends, industry outlook, competition, and government regulations. The goal of Lowes Stock analysis is to determine whether it is undervalued, fairly valued, or overvalued and to make informed investment decisions.
Dividend Yield
0.0202
Forward Dividend Yield
0.0202
Forward Dividend Rate
4.6
Beta
1.074

Basic technical analysis of Lowes Stock

As of the 20th of June, Lowes Companies secures the Standard Deviation of 1.32, mean deviation of 1.04, and Risk Adjusted Performance of (0.04). In connection with fundamental indicators, the technical analysis model lets you check existing technical drivers of Lowes Companies, as well as the relationship between them. Please verify Lowes Companies market risk adjusted performance and treynor ratio to decide if Lowes Companies is priced some-what accurately, providing market reflects its recent price of 226.3 per share. Given that Lowes Companies has information ratio of (0.08), we recommend you to check Lowes Companies's last-minute market performance to make sure the company can sustain itself at a future point.

Lowes Companies' insider trading activities

Some recent studies suggest that insider trading raises the cost of capital for securities issuers and decreases overall economic growth. Trading by specific Lowes Companies insiders, such as employees or executives, is commonly permitted as long as it does not rely on Lowes Companies' material information that is not in the public domain. Local jurisdictions usually require such trading to be reported in order to monitor insider transactions. In many U.S. states, trading conducted by corporate officers, key employees, directors, or significant shareholders must be reported to the regulator or publicly disclosed, usually within a few business days of the trade. In these cases Lowes Companies insiders are required to file a Form 4 with the U.S. Securities and Exchange Commission (SEC) when buying or selling shares of their own companies.

Lowes Companies' Outstanding Corporate Bonds

Lowes Companies issues bonds to finance its operations. Corporate bonds make up one of the largest components of the U.S. bond market, which is considered the world's largest securities market. Lowes Companies uses the proceeds from bond sales for a wide variety of purposes, including financing ongoing mergers and acquisitions, buying new equipment, investing in research and development, buying back their own stock, paying dividends to shareholders, and even refinancing existing debt. Most Lowes bonds can be classified according to their maturity, which is the date when Lowes Companies has to pay back the principal to investors. Maturities can be short-term, medium-term, or long-term (more than ten years). Longer-term bonds usually offer higher interest rates but may entail additional risks.

Understand Lowes Companies' technical and predictive indicators

Using predictive indicators to make investment decisions involves analyzing Lowes Companies' various financial and market-based factors to help forecast future trends and identify investment opportunities. Select the indicators that are most relevant to your investment strategy. Each indicator has its own strengths and weaknesses, so it's essential to combine multiple indicators to get a more comprehensive view of the market and reduce the risk of making poor decisions based on limited data.

Consider Lowes Companies' intraday indicators

Lowes Companies intraday indicators are useful technical analysis tools used by many experienced traders. Just like the conventional technical analysis, daily indicators help intraday investors to analyze the price movement with the timing of Lowes Companies stock daily movement. By combining multiple daily indicators into a single trading strategy, you can limit your risk while still earning strong returns on your managed positions.

Lowes Companies Corporate Filings

F4
18th of June 2024
The report filed by a party regarding the acquisition or disposition of a company's common stock, as well as derivative securities such as options, warrants, and convertible securities
ViewVerify
17th of June 2024
Other Reports
ViewVerify
8K
5th of June 2024
Report filed with the SEC to announce major events that shareholders should know about
ViewVerify
F3
3rd of June 2024
The report used by insiders such as officers, directors, and major shareholders (beneficial owners holding more than 10% of any class of the company's equity securities) to declare their ownership of a company's stock
ViewVerify
Lowes Companies time-series forecasting models is one of many Lowes Companies' stock analysis techniques aimed to predict future share value based on previously observed values. Time-series forecasting models ae widely used for non-stationary data. Non-stationary data are called the data whose statistical properties e.g. the mean and standard deviation are not constant over time but instead, these metrics vary over time. These non-stationary Lowes Companies' historical data is usually called time-series. Some empirical experimentation suggests that the statistical forecasting models outperform the models based exclusively on fundamental analysis to predict the direction of the market movement and maximize returns from investment trading.

Lowes Stock media impact

Far too much social signal, news, headlines, and media speculation about Lowes Companies that are available to investors today. That information is available publicly through Lowes media outlets and privately through word of mouth or via Lowes internal channels. However, regardless of the origin, that massive amount of Lowes data is challenging to quantify into actionable patterns, especially for investors that are not very sophisticated with ever-evolving tools and techniques used in the investment management field.
A primary focus of Lowes Companies news analysis is to determine if its current price reflects all relevant headlines and social signals impacting the current market conditions. A news analyst typically looks at the history of Lowes Companies relative headlines and hype rather than examining external drivers such as technical or fundamental data. It is believed that price action tends to repeat itself due to investors' collective, patterned thinking related to Lowes Companies' headlines and news coverage data. This data is often completely overlooked or insufficiently analyzed for actionable insights to drive Lowes Companies alpha.

Lowes Companies Sentiment by Major News Outlets

Investor sentiment, mood or attitude towards Lowes Companies can have a significant impact on its stock price or the market as a whole. This sentiment can be positive or negative, and various factors, such as economic indicators, news events, or market trends, can influence it. When investor sentiment is positive, investors are more likely to buy stocks, increasing demand and increasing the stock price. Positive investor sentiment can be driven by good news about the company or the broader market, such as solid earnings reports or positive economic data.
Note that negative investor sentiment can cause investors to sell stocks, leading to a decrease in demand and a drop in the stock price. Negative sentiment can be driven by factors such as poor earnings reports, negative news about the company or industry, or broader economic concerns. It's important to note that investor sentiment is just one of many factors that can affect stock prices. Other factors, such as company performance, industry trends, and global economic conditions, can also play a significant role in determining the value of a stock.

Lowes Companies Historical Investor Sentiment

Investor biases related to Lowes Companies' public news can be used to forecast risks associated with an investment in Lowes. The trend in average sentiment can be used to explain how an investor holding Lowes can time the market purely based on public headlines and social activities around Lowes Companies. Please note that most equities that are difficult to arbitrage are affected by market sentiment the most.
Lowes Companies' market sentiment shows the aggregated news analyzed to detect positive and negative mentions from the text and comments. The data is normalized to provide daily scores for Lowes Companies and other traded tickers. The bigger the bubble, the more accurate the estimated score. Higher bars for a given day show more participation in the average Lowes Companies news discussions. The higher the estimate score, the more favorable the investor's outlook on Lowes Companies.

Lowes Companies Maximum Pain Price across 2024-06-21 Option Contracts

Lowes Companies' options can also be used to analyze investors' bias and current market sentiment in the context of behavioral finance. For example, Max pain usually refers to a trading concept that asserts that market manipulation can cause the market price of Lowes Companies close to the expiration of its current option contract to expire worthlessly. According to most research, about 35% of options are not executed, with roughly 50% traded out before expiration. So, Max pain occurs when market makers reach a net favorable position across all options at a strike price where option holders stand to lose the most money. By contrast, option sellers may reap the most after selling more options than buying, causing them to expire worthlessly. Please continue to view the detailed analysis of Lowes Companies' options.

Lowes Companies Corporate Directors

Lisa WardellIndependent DirectorProfile
David BatchelderIndependent DirectorProfile
Brian RogersIndependent DirectorProfile
Sandra CochranIndependent DirectorProfile

Additional Tools for Lowes Stock Analysis

When running Lowes Companies' price analysis, check to measure Lowes Companies' market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy Lowes Companies is operating at the current time. Most of Lowes Companies' value examination focuses on studying past and present price action to predict the probability of Lowes Companies' future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Lowes Companies' price. Additionally, you may evaluate how the addition of Lowes Companies to your portfolios can decrease your overall portfolio volatility.