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Dec 13, 2018
Lowe's (LOW, $92.11) Will Buy Back $10 Billion Shares, And Focus on Boosting Business

Lowe's (LOW, $92.11) Will Buy Back $10 Billion Shares, And Focus on Boosting Business

Lowe’s shareholders might have something to cheer about. On Wednesday, Lowe’s announced a $10 billion stock repurchase program. The home improvement retail chain also said earnings per share would rise to a range of $6.00 and $6.10 for fiscal 2019. That’s higher than analysts’ expectation of $5.90, according to FactSet data (as reported by CNBC).

Lowe’s is apparently taking several steps towards uplifting its profitability. It is shuttering underperforming stores, while upping the ante on its e-commerce segment and software capabilities. The company plans to hire around 2,000 software engineers over the next few years. Also, during a meeting with investors, CEO Marvin Ellison said the company has to "get back to basics" and focus on fundamental aspects like customer service and having the optimal merchandise in stock. The retail chain hopes to open eight home improvement stores by the end of fiscal 2018. Earlier this year, it announced decision to close all of its Orchard Supply Hardware stores and terminate its Mexico retail operations.

Related Ticker: LOW

Contributor

Sergey Savastiouk, Ph.D. has a degree in Applied Mathematics from Moscow University and has extensive experience as an entrepreneur, investor, manager, and mathematician. His professional expertise is in applied mathematics, mathematical modeling, system and pattern analysis, and software and hardware system integration. He has served as the CEO of several hi-tech start-up companies and nonprofit organizations, which has given him proven capabilities in business strategy for high-tech start-up companies, market assessment, company formation, team building, product development, marketing, and sales. He has published numerous articles in journals and magazines on related fields. As a retail investor, he spent 15 years developing his proprietary trading and quantitative algorithms (now Tickeron’s A.I.), which brought him significant returns in trading the stock market. His current work and goal in founding Tickeron is to bring professional, sophisticated stock market analysis capabilities to retail investors via an easy-to-use interface.


LOW in downward trend: 10-day moving average broke below 50-day moving average on August 28, 2026

The 10-day moving average for LOW crossed bearishly below the 50-day moving average on August 28, 2026. This indicates that the trend has shifted lower and could be considered a sell signal. In 12 of 16 past instances when the 10-day crossed below the 50-day, the stock continued to move higher over the following month. The odds of a continued downward trend are 75%.

Price Prediction Chart

Technical Analysis (Indicators)

Bearish Trend Analysis

The Momentum Indicator moved below the 0 level on August 20, 2026. You may want to consider selling the stock, shorting the stock, or exploring put options on LOW as a result. In 45 of 81 cases where the Momentum Indicator fell below 0, the stock fell further within the subsequent month. The odds of a continued downward trend are 56%.

The Moving Average Convergence Divergence Histogram (MACD) for LOW turned negative on August 21, 2026. 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 47 similar instances when the indicator turned negative. In 27 of the 47 cases the stock turned lower in the days that followed. This puts the odds of success at 57%.

LOW moved below its 50-day moving average on August 25, 2026 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 50 of 62 cases within the following month. The odds of a continued downward trend are 60%.

Bullish Trend Analysis

The RSI Indicator demonstrates that the ticker has stayed in the oversold zone for 1 day, which means it's wise to expect a price bounce in the near future.

The Stochastic Oscillator shows that the ticker has stayed in the oversold zone for 12 days. The price of this ticker is presumed to bounce back soon, since the longer the ticker stays in the oversold zone, the more promptly an upward trend is expected.

Following a +2.31% 3-day Advance, the price is estimated to grow further. Considering data from situations where LOW advanced for three days, in 193 of 330 cases, the price rose further within the following month. The odds of a continued upward trend are 58%.

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 133 of 255 cases where LOW Aroon's Indicator entered an Uptrend, the price rose further within the following month. The odds of a continued Uptrend are 52%.

Fundamental Analysis (Ratings)

The Tickeron Valuation Rating of 5 (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 (5.577). P/E Ratio (16.637) is within average values for comparable stocks, (16.504). Projected Growth (PEG Ratio) (1.330) is also within normal values, averaging (1.271). Dividend Yield (0.025) settles around the average of (0.034) among similar stocks. P/S Ratio (1.219) is also within normal values, averaging (0.956).

The Tickeron SMR rating for this company is 6 (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 63 (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 73 (best 1 - 100 worst), pointing to worse than average 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 Profit vs. Risk Rating rating for this company is 81 (best 1 - 100 worst), indicating that the returns do not compensate for the risks. LOW’s unstable profits reported over time resulted in significant Drawdowns within these last five years. A stable profit reduces stock drawdown and volatility. The average Profit vs. Risk Rating rating for the industry is 92, placing this stock better than average.

Notable companies

The most notable companies in this group are Home Depot (NYSE:HD), Lowe's Companies (NYSE:LOW).

Industry description

The home improvement chains industry sells home improvement merchandise and do-it-yourself repair and building goods. Customers include individual contractors or construction managers on one hand; on the other hand, there are retail consumers who’d either buy raw materials/items from the store to do a project on their own, or pay extra for installation services. Products sold include fencing supplies, lumber materials, hardware, lighting fixtures, plumbing supplies, home decor items, bathroom remodel items, roofing materials, tools and wallboard to name a few. The Home Depot Inc., Lowe’s Companies, Inc. and Floor & Decor Holdings, Inc. are some of the biggest home improvement retailing companies in the U.S. Allowing all types of customers the flexibility to choose or buy products both offline and online and then having the products shipped to the respective sites/homes are some of the potential drivers of a home improvement chain’s popularity. Many big-box home improvement chains are looking to expand their overseas presence. Supply-chain efficiency and distribution management are some of the key ingredients to grow/make profit in this industry.

Market Cap

The average market capitalization across the Home Improvement Chains Industry is 84.79B. The market cap for tickers in the group ranges from 23.36M to 308.03B. HD holds the highest valuation in this group at 308.03B. The lowest valued company is TBHC at 23.36M.

High and low price notable news

The average weekly price growth across all stocks in the Home Improvement Chains Industry was -5%. For the same Industry, the average monthly price growth was -12%, and the average quarterly price growth was -7%. HVT experienced the highest price growth at -3%, while LIVE experienced the biggest fall at -7%.

Volume

The average weekly volume growth across all stocks in the Home Improvement Chains Industry was 31%. For the same stocks of the Industry, the average monthly volume growth was 6% and the average quarterly volume growth was 28%

Fundamental Analysis Ratings

The average fundamental analysis ratings, where 1 is best and 100 is worst, are as follows

Valuation Rating: 33
P/E Growth Rating: 72
Price Growth Rating: 66
SMR Rating: 52
Profit Risk Rating: 92
Seasonality Score: -66 (-100 ... +100)
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General Information

a company, which engages in the retail sale of home improvement products

Industry HomeImprovementChains

Profile
Details
Industry
Home Improvement Chains
Address
1000 Lowes Boulevard
Phone
+1 704 758-1000
Employees
276000
Web
https://www.lowes.com
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