Lowe’s (LOW, $100.40) identifies three key areas to upgrade business performance
In an ever-changing retail landscape, home improvement giant Lowe’s Companies (LOW) managed to deliver impressive Q4 result that saw its sales grow to $15.6 billion, a 1% y-o-y increase, and adjusted earnings per share (EPS) rising to $0.80, an 8.1% y-o-y increase. However, this is not a definitive success as the company still has to figure out how to stay relevant in the changing demand landscape.
CEO Marvin Ellison has identified three key areas that must be improved for an overall success: taking care of the Pros, taking care of the digital sales, and finally taking care of delivery.
In the retail industry, Pro customers are defined as those in the construction trades or the maintenance, repair, and operations industry. These customers are more important as they make more frequent and expensive visits versus DIY customers working on weekend projects. Capturing a sizeable share of its Pro customer market is key to Lowe’s future performance. For this, the company has planned to dedicate loaders to exclusively serve Pro customers, so any bulky products they purchase can be loaded quickly and efficiently at the store.
Although Lowe’s online sales rose 11% y-o-y in Q4, it is still lower than Home Depot’s (HD) online sales which rose 24% in the same period. To address this problem, Lowe’s plans to make their website more user-friendly, to place associates online and to work more intimately with vendors to enable better product selection.
Finally, Ellison acknowledged the need to upgrade its delivery and logistics infrastructure. The company is currently planning to develop a network of distribution centers and systems that will centrally help to manage bulk deliveries to customers’ homes and job sites more efficiently. The company just opened its first direct fulfillment center and has plans to open a second on the West Coast.
LOW's Stochastic Oscillator stays in oversold zone for 2 days
Be on the lookout for a price bounce soon.
Technical Analysis (Indicators)
Bullish Trend Analysis
The 10-day moving average for LOW crossed bullishly above the 50-day moving average on May 13, 2025. This indicates that the trend has shifted higher and could be considered a buy signal. In of 14 past instances when the 10-day crossed above the 50-day, the stock continued to move higher over the following month. The odds of a continued upward trend are .
Following a 3-day Advance, the price is estimated to grow further. Considering data from situations where LOW advanced for three days, in of 355 cases, the price rose further within the following month. The odds of a continued upward trend are .
LOW may jump back above the lower band and head toward the middle band. Traders may consider buying the stock or exploring call options.
The Aroon Indicator entered an Uptrend today. In of 285 cases where LOW Aroon's Indicator entered an Uptrend, the price rose further within the following month. The odds of a continued Uptrend are .
Bearish Trend Analysis
The Momentum Indicator moved below the 0 level on June 10, 2025. You may want to consider selling the stock, shorting the stock, or exploring put options on LOW as a result. In of 86 cases where the Momentum Indicator fell below 0, the stock fell further within the subsequent month. The odds of a continued downward trend are .
The Moving Average Convergence Divergence Histogram (MACD) for LOW turned negative on May 23, 2025. This could be a sign that the stock is set to turn lower in the coming weeks. Traders may want to sell the stock or buy put options. Tickeron's A.I.dvisor looked at 50 similar instances when the indicator turned negative. In of the 50 cases the stock turned lower in the days that followed. This puts the odds of success at .
LOW moved below its 50-day moving average on June 11, 2025 date and that indicates a change from an upward trend to a downward trend.
Following a 3-day decline, the stock is projected to fall further. Considering past instances where LOW declined for three days, the price rose further in of 62 cases within the following month. The odds of a continued downward trend are .
The Tickeron Valuation Rating of (best 1 - 100 worst) indicates that the company is seriously undervalued in the industry. This rating compares market capitalization estimated by our proprietary formula with the current market capitalization. This rating is based on the following metrics, as compared to industry averages: P/B Ratio (0.000) is normal, around the industry mean (10.858). P/E Ratio (18.885) is within average values for comparable stocks, (34.733). Projected Growth (PEG Ratio) (3.244) is also within normal values, averaging (2.738). Dividend Yield (0.018) settles around the average of (0.034) among similar stocks. P/S Ratio (1.685) is also within normal values, averaging (20.083).
The Tickeron SMR rating for this company is (best 1 - 100 worst), indicating very strong sales and a profitable business model. SMR (Sales, Margin, Return on Equity) rating is based on comparative analysis of weighted Sales, Income Margin and Return on Equity values compared against S&P 500 index constituents. The weighted SMR value is a proprietary formula developed by Tickeron and represents an overall profitability measure for a stock.
The Tickeron Profit vs. Risk Rating rating for this company is (best 1 - 100 worst), indicating low risk on high returns. The average Profit vs. Risk Rating rating for the industry is 74, placing this stock better than average.
The Tickeron PE Growth Rating for this company is (best 1 - 100 worst), pointing to consistent earnings growth. The PE Growth rating is based on a comparative analysis of stock PE ratio increase over the last 12 months compared against S&P 500 index constituents.
The Tickeron Price Growth Rating for this company is (best 1 - 100 worst), indicating fairly steady price growth. LOW’s price grows at a lower rate over the last 12 months as compared to S&P 500 index constituents.
The Tickeron Seasonality Score of (best 1 - 100 worst) indicates that the company is significantly overvalued in the industry. The Tickeron Seasonality score describes the variance of predictable price changes around the same period every calendar year. These changes can be tied to a specific month, quarter, holiday or vacation period, as well as a meteorological or growing season.
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General Information
a company, which engages in the retail sale of home improvement products
Industry SpecialtyStores
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