Lowe’s Companies Inc. (NYSE:LOW) shares traded lower over the last trading session, losing -0.79% on 06/01/20. The shares fell to a low of $128.30 before closing at $129.32. Intraday shares traded counted 5.11 million, which was 31.3% higher than its 30-day average trading volume of 7.44M. LOW’s previous close was $130.35 while the outstanding shares total 755.00M. The firm has a beta of 1.41, a 12-month trailing P/E ratio of 21.80, and a growth ratio of 1.22. The stock’s Relative Strength Index (RSI) is 82.53, with weekly volatility at 2.72% and ATR at 3.86. The LOW stock’s 52-week price range has touched low of $60.00 and a $131.40 high.
Investors have identified the Home Improvement Retail company Lowe’s Companies Inc. as an interesting stock but before investments are made there, an in-depth look at its trading activities will have to be conducted. The share is trading with a market value of around $97.64 billion, the company now has both obstacles and catalysts that affect them and they came from their mode of operations. With the company affected by events currently, it is a perfect time to analyze the numbers behind the firm in order to come up with a rather realistic picture of what this stock is.
Lowe’s Companies Inc. (LOW) Fundamentals that are to be considered.
When analyzing a stock, the first fundamental thing to take into account is the balance sheet. How healthy the balance sheet of a company is will determine if the company will be able to carry out all its financial and non-financial obligations and also keep the faith of its investors. For LOW, the company has in raw cash 5.96 billion on their books with 2.11 billion currently as liabilities. How the trend is over time is what investors should be concerned about. The company has a healthy balance sheet as their debt profile has been on a decline. In terms of their assets, the company currently has 21926000000 million total, with 18325000000 million as their total liabilities.
LOW were able to record 4.12 billion as free cash flow during the third quarter of the year, this saw their quarterly net cash flow reduce by 5.24 billion. In cash movements, the company had a total of 4.45 billion as operating cash flow.
Potential earnings growth for Lowe’s Companies Inc. (LOW)
In order to determine the future investment potential for this stock, we will have to analyze key trends that affect it. During the third quarter of the year, Lowe’s Companies Inc. recorded a total of 19.68 billion in revenue. This figure implies that they witnessed a quarterly year/year change in their earnings with 9.83% coming in sequential stages and their sales for the third quarter increasing by 18.54%.
What matters though is how it ends. When the core data for the company is broken down, then the stock sounds interesting. The company spent 13.16 billion trying to sell their products during the last quarter, with the result yielding a gross income of 6.51 billion. This allows shareholders to hold on to 755.00M with the revenue now reading 1.76 cents per share. This is a figure that is close to analyst’s prediction for their fourth quarter (1.29 cents a share).
Having a look at the company’s valuation, the company is expected to record 5.72 total earnings per share during the next fiscal year. It is very important though to remember that the importance of trend far outweighs that of outlook. This analysis has been great and getting further updates on LOW sounds very interesting.
Is the stock of LOW attractive?
In related news, President and CEO, Ellison Marvin R bought 10,000 shares of the company’s stock in a transaction that recorded on Mar 06. The purchase was performed at an average price of 103.86, for a total value of 1,038,595. As the purchase deal closes, the SVP Chief Accounting Officer, Hollifield Matthew V now sold 12,136 shares of the company’s stock, valued at 1,363,312. Also, EVP, Human Resources, Weber Jennifer L sold 12,589 shares of the company’s stock in a deal that was recorded on Sep 16. The shares were cost at an average price of 112.62 per share, with a total market value of 1,417,773. Following this completion of disposal, the EVP, Supply Chain, Frieson Donald now holds 2,030 shares of the company’s stock, valued at 200,342. In the last 6 months, insiders have changed their ownership in shares of company stock by 0.17%.
22 out of 30 analysts covering the stock have rated it a Buy, while 5 have maintained a Hold recommendation on Lowe’s Companies Inc.. 0 analysts has assigned a Sell rating on the LOW stock. The 12-month mean consensus price target for the company’s shares has been set at $116.56.