For today’s bulletin, we take a look at Lowe’s Companies Inc. $LOW and provide a link to download a copy of our latest stock report on the banking giant.
VALUATION WATCH: Overvalued stocks now make up 41.36% of our stocks assigned a valuation and 15.98% of those equities are calculated to be overvalued by 20% or more. Seven sectors are calculated to be overvalued.
Lowe’s Companies, Inc. (LOW) operates as a home improvement company in the United States, Canada, and Mexico. It offers a line of products for maintenance, repair, remodeling, and decorating. The company provides home improvement products in various categories, such as lumber and building materials, tools and hardware, appliances, fashion fixtures, rough plumbing and electrical, seasonal living, lawn and garden, paint, millwork, flooring, kitchens, outdoor power equipment, and home fashions. It also offers installation services through independent contractors in various product categories; extended protection plans; and in-warranty and out-of-warranty repair services. The company sells its national brand-name merchandise and private branded products to homeowners, renters, and professional customers; and retail customers comprising individual homeowners and renters.
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We have had a BUY rating on this stock for most of the year, however, investors have reacted negatively to the firm’s lagging behind arch-rival Home Depot with sales. In addition, the firm faces similar pressures to many retailers thanks to the Amazon.com juggernaut.
In an effort to address these concerns, save money, and re-invigorate their business, Lowe’s announced today that they will close non-performing locations. This move, which effects a total of 50 stores, will be joined by an effort to boost online sales and do a better job of keeping the remaining stores’ shelves properly stocked.
Financially, the reduction in brick and mortar locations combined with the costs associated with the moves are projected to reduce Lowe’s expected annual earnings by $0.28-$0.34/share–in August, Lowe’s projected annual eps figures of $4.50-$4.60/share.
VALUENGINE RECOMMENDATION: ValuEngine continues its BUY recommendation on LOWES COS for 2018-11-02. Based on the information we have gathered and our resulting research, we feel that LOWES COS has the probability to OUTPERFORM average market performance for the next year. The company exhibits ATTRACTIVE Company Size and Momentum.
You can download a free copy of our summary report on Lowe’s Companies, Inc. (LOW) from the link below.
| ValuEngine Forecast | ||
| Target Price* |
Expected Return |
|
|---|---|---|
| 1-Month | 97.22 | 0.41% |
| 3-Month | 97.18 | 0.37% |
| 6-Month | 99.09 | 2.34% |
| 1-Year | 101.57 | 4.90% |
| 2-Year | 100.39 | 3.69% |
| 3-Year | 102.89 | 6.27% |
| Valuation & Rankings | |||
| Valuation | 3.24% overvalued | Valuation Rank(?) | 36 |
| 1-M Forecast Return | 0.41% | 1-M Forecast Return Rank | 80 |
| 12-M Return | 26.31% | Momentum Rank(?) | 87 |
| Sharpe Ratio | 0.56 | Sharpe Ratio Rank(?) | 87 |
| 5-Y Avg Annual Return | 12.97% | 5-Y Avg Annual Rtn Rank | 86 |
| Volatility | 23.13% | Volatility Rank(?) | 62 |
| Expected EPS Growth | 16.20% | EPS Growth Rank(?) | 52 |
| Market Cap (billions) | 94.20 | Size Rank | 99 |
| Trailing P/E Ratio | 19.36 | Trailing P/E Rank(?) | 57 |
| Forward P/E Ratio | 16.66 | Forward P/E Ratio Rank | 38 |
| PEG Ratio | 1.20 | PEG Ratio Rank | 35 |
| Price/Sales | 1.34 | Price/Sales Rank(?) | 59 |
| Market/Book | 20.89 | Market/Book Rank(?) | 8 |
| Beta | 1.54 | Beta Rank | 17 |
| Alpha | 0.10 | Alpha Rank | 81 |
DOWNLOAD A FREE SAMPLE OF OUR LOWE’S COM (LOW) REPORT BY CLICKING HERE
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Steve Hach
Senior Editor
ValuEngine.Com