Lowe's (LOW, $98.79) disappoints on Q1 earnings, while showing strength in sales
Lowe’s Companies reported lower-than-expected first quarter earnings Wednesday, even as it beat estimates on revenues. The home improvement retail giant also lowered its projection on full-year earnings.
Earnings for the three months ending in April came in at $1.22 per share, weaker than the Street consensus expectations of $1.33 per share. They were, however, +2.5% higher from the year-ago period.
The company's total revenue increased +2.2% year-over-year to $17.7 billion in the quarter, edging past analysts' estimates of $17.48 billion. Same stores sales climbed +3.5% from last year, also beating consensus expectations of a +3.2% gain.
Looking ahead, Lowe’s predicts that adjusted earnings for the current fiscal year, (ending early 2020), would sit between $5.45 and $5.65, down from a prior forecast range of $6.00 to $6.10.
But it reaffirmed forecasts on revenue growth at +2% and comparable sales growth at 3%.
While mentioning strength in consumer spending as reflected in sales growth, CEO Marvin Ellison also admitted to cost pressures and added that the company is taking steps, such as improving retail pricing strategies, to mitigate the challenge.
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 sees MACD Histogram crosses below signal line
LOW saw its Moving Average Convergence Divergence Histogram (MACD) turn negative on August 21, 2026. This is a bearish signal that suggests the stock could decline going forward. Tickeron's A.I.dvisor looked at 47 instances where the indicator turned negative. In of the 47 cases the stock moved lower in the days that followed. This puts the odds of a downward move at .
Technical Analysis (Indicators)
Bearish Trend Analysis
The Stochastic Oscillator may be shifting from an upward trend to a downward trend. In of 60 cases where LOW's Stochastic Oscillator exited the overbought zone, the price fell further within the following month. The odds of a continued downward trend are .
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 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 .
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 .
LOW broke above its upper Bollinger Band on July 28, 2026. This could be a sign that the stock is set to drop as the stock moves back below the upper band and toward the middle band. You may want to consider selling the stock or exploring put options.
Bullish Trend Analysis
LOW moved above its 50-day moving average on August 04, 2026 date and that indicates a change from a downward trend to an upward trend.
The 10-day moving average for LOW crossed bullishly above the 50-day moving average on August 06, 2026. 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 327 cases, the price rose further within the following month. The odds of a continued upward trend are .
The Aroon Indicator entered an Uptrend today. In of 258 cases where LOW Aroon's Indicator entered an Uptrend, the price rose further within the following month. The odds of a continued Uptrend are .
Fundamental Analysis (Ratings)
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 (6.051). P/E Ratio (18.266) is within average values for comparable stocks, (17.821). Projected Growth (PEG Ratio) (1.453) is also within normal values, averaging (1.524). Dividend Yield (0.022) settles around the average of (0.033) among similar stocks. P/S Ratio (1.338) is also within normal values, averaging (1.045).
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 Seasonality Score of (best 1 - 100 worst) indicates that the company is fair valued 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.
The Tickeron Price Growth Rating for this company is (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 (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 Profit vs. Risk Rating rating for this company is (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 90, placing this stock better than average.
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General Information
a company, which engages in the retail sale of home improvement products
Industry HomeImprovementChains
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