Lowe's (LOW, $217.75) beats Q4 expectations
Lowe's Companies posted fourth quarter earnings that surpassed expectations. The home improvement company also raised its 2022 outlook, on gaining market shares from its larger rival.
Lowe's adjusted earnings for the three months ending on January 28 came in at $1.78 per share, +33.8% higher from the year-ago quarter well ahead of the Street expectations of $1.71 per share.
Revenues increased +4.9% year-over-year to $21.3 billion, exceeding analysts' estimates of a $20.31 billion. U.S. same-store sales climbed +5%, vs. Refinitiv forecast of a -3.1% decline.
Looking ahead, Lowe's projects 2022 financial year earnings in the range of $13.10 to $13.60 per share, up from its mid-December forecast of $12.25 to $13 per share.
The company expects revenues in the range of $97 billion and $99 billion, a $2 billion improvement from the higher end of its prior forecast. It predicts same-store sales either falling or rising by 1% from 2021 levels.
LOW in upward trend: price expected to rise as it breaks its lower Bollinger Band on May 11, 2022
LOW may jump back above the lower band and head toward the middle band. Traders may consider buying the stock or exploring call options. In 27 of 39 cases where LOW's price broke its lower Bollinger Band, its price rose further in the following month. The odds of a continued upward trend are 69%.
Current price $194.73 crossed the support line at $192.67 and is trading between $206.51 resistance and $192.67 support lines. Throughout the month of 04/13/22 - 05/16/22, the price experienced a -5% Downtrend. During the week of 05/09/22 - 05/16/22, the stock fell -0.68%.
The RSI Indicator points to a transition from a downward trend to an upward trend -- in cases where LOW's RSI Oscillator exited the oversold zone, 16 of 26 resulted in an increase in price. Tickeron's analysis proposes that the odds of a continued upward trend are 62%.
The Stochastic Indicator suggests the stock price trend may be in a reversal from a downward trend to an upward trend. 37 of 57 cases where LOW's Stochastic Oscillator exited the oversold zone resulted in an increase in price. Tickeron's analysis proposes that the odds of a continued upward trend are 65%.
Following a +1.58% 3-day Advance, the price is estimated to grow further. Considering data from situations where LOW advanced for three days, in 243 of 372 cases, the price rose further within the following month. The odds of a continued upward trend are 65%.
The Momentum Indicator moved below the 0 level on May 03, 2022. You may want to consider selling the stock, shorting the stock, or exploring put options on LOW as a result. In 46 of 84 cases where the Momentum Indicator fell below 0, the stock fell further within the subsequent month. The odds of a continued downward trend are 55%.
The Moving Average Convergence Divergence Histogram (MACD) for LOW turned negative on May 10, 2022. 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 44 similar instances when the indicator turned negative. In 23 of the 44 cases the stock turned lower in the days that followed. This puts the odds of success at 52%.
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 50 of 62 cases within the following month. The odds of a continued downward trend are 57%.
The Aroon Indicator for LOW entered a downward trend on May 05, 2022. This could indicate a strong downward move is ahead for the stock. Traders may want to consider selling the stock or buying put options.
Tickeron has a negative outlook on this ticker and predicts a further decline by more than 4.00% within the next month with a likelihood of 43%. During the last month, the daily ratio of advancing to declining volumes was 1 to 1.3.
The Tickeron Valuation Rating of 1 (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 (8.186). P/E Ratio (16.103) is within average values for comparable stocks, (25.505). Projected Growth (PEG Ratio) (1.213) is also within normal values, averaging (1.446). Dividend Yield (0.016) settles around the average of (0.028) among similar stocks. P/S Ratio (1.409) is also within normal values, averaging (31.265).
The Tickeron Profit vs. Risk Rating rating for this company is 11 (best 1 - 100 worst), indicating low risk on high returns. The average Profit vs. Risk Rating rating for the industry is 77, placing this stock better than average.
The Tickeron SMR rating for this company is 14 (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 Price Growth Rating for this company is 59 (best 1 - 100 worst), indicating steady price growth. LOW’s price grows at a higher rate over the last 12 months as compared to S&P 500 index constituents.
The Tickeron PE Growth Rating for this company is 64 (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 specialty stores sector includes companies dedicated to the sale of retail products focused on a single product category, such as clothing, carpet, books, or office supplies. A specialty store could face intense competition from big-box departmental chains, and therefore offering an adequate collection of the product type it specializes in is key in maintaining/growing its market.
The average market capitalization across the Specialty Stores Industry is 6.6B. The market cap for tickers in the group ranges from 48 to 305.9B. HD holds the highest valuation in this group at 305.9B. The lowest valued company is CALI at 48.
The average weekly price growth across all stocks in the Specialty Stores Industry was 1.03%. For the same Industry, the average monthly price growth was -9.18%, and the average quarterly price growth was -19.74%. MSSV experienced the highest price growth at 183.15%, while IHCPF experienced the biggest fall at -29.32%.
- 3/25/22 6:11 AM: Lowe's Companies (LOW, $219.17) was a top loser this week, declining -6.49%
- 3/3/22 7:26 AM: Lowe's Companies (LOW, $228.66) was a top weekly gainer, with a +6.31% jump
- 2/23/22 5:33 AM: Lowe's Companies (LOW, $214.59) was a top loser this week, declining -5.92%
The average weekly volume growth across all stocks in the Specialty Stores Industry was 46.47%. For the same stocks of the Industry, the average monthly volume growth was 54.26% and the average quarterly volume growth was 28.14%
The average fundamental analysis ratings, where 1 is best and 100 is worst, are as follows
Stocks in the group have a Negative Outlook today, backed by the Aroon Indicator. Tickeron has a negative outlook on this group and predicts a further decline by more than 4.00% within the next month with a likelihood of 40%. During the last month, the daily ratio of advancing to declining volumes was 1 to 1.17.
45 stocks in the group of tickers exhibit a similar negative trend based on the MACD indicator with an average likelihood of 75%.
The most notable companies in this group are Home Depot (NYSE:HD), Lowe's Companies (NYSE:LOW), AutoZone (NYSE:AZO), Tractor Supply Company (NASDAQ:TSCO), Ulta Beauty (NASDAQ:ULTA), Best Buy Company (NYSE:BBY), Advance Auto Parts (NYSE:AAP), Bath & Body Works (NYSE:BBWI), Five Below (NASDAQ:FIVE), GameStop Corp (NYSE:GME).
The average market capitalization across the group is 7.8B. The market cap for tickers in the group ranges from 1.1M to 305.9B. HD holds the highest valuation in this group at 305.9B. The lowest valued company is MSSV at 1.1M.
- 2/23/22 5:33 AM: Home Depot (HD, $316.17), market cap dropped by $32.1B
The average weekly price growth across all stocks in the group was 0.96%. For the same group, the average monthly price growth was -11.84%, and the average quarterly price growth was -29.91%. MSSV experienced the highest price growth at 183.15%, while CYYHF experienced the biggest fall at -24.61%.
- 5/14/22 4:23 AM: Vroom (VRM, $1.6) is a top weekly gainer for penny stocks, rising +18.52%
- 5/14/22 4:22 AM: JD Sports Fashion (JDSPY, $1.68) was a top weekly gainer, with a +21.74% jump
- 5/12/22 5:38 AM: Jiuzi Holdings (JZXN, $1) is a top weekly loser for penny stocks, falling -25.93%
The average weekly volume growth across all stocks in the group was 30.98%. For the same stocks of the group, the average monthly volume growth was 58.93% and the average quarterly volume growth was 34.32%
- 5/14/22 4:17 AM: The volume for Vroom stock increased for three consecutive days, resulting in a record-breaking daily growth of 191% of the 65-Day Volume Moving Average
- 5/12/22 5:33 AM: The volume for Vroom stock increased for one day, resulting in a record-breaking daily growth of 283% of the 65-Day Volume Moving Average
- 5/11/22 7:40 AM: The volume for Party City Hold stock increased for one day, resulting in a record-breaking daily growth of 321% of the 65-Day Volume Moving Average
The average fundamental analysis ratings, where 1 is best and 100 is worst, are as follows