Trade-Ideas: Lowe's Companies (LOW) Is Today's Pre-Market Leader Stock
Trade-Ideas LLC identified
(
) as a pre-market leader candidate. In addition to specific proprietary factors, Trade-Ideas identified Lowe's Companies as such a stock due to the following factors:
- LOW has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $348.0 million.
- LOW traded 116,912 shares today in the pre-market hours as of 9:19 AM.
- LOW is up 3.3% today from Friday's close.
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More details on LOW:
Lowe's Companies, Inc. operates as a home improvement retailer. The company offers products for maintenance, repair, remodeling, and home decorating. The stock currently has a dividend yield of 1.5%. LOW has a PE ratio of 24. Currently there are 14 analysts that rate Lowe's Companies a buy, no analysts rate it a sell, and 5 rate it a hold.
The average volume for Lowe's Companies has been 4.8 million shares per day over the past 30 days. Lowe's Companies has a market cap of $67.3 billion and is part of the services sector and retail industry. The stock has a beta of 0.95 and a short float of 1.2% with 2.43 days to cover. Shares are up 1.9% year-to-date as of the close of trading on Friday.
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Analysis:
rates Lowe's Companies as a
. The company's strengths can be seen in multiple areas, such as its solid stock price performance, impressive record of earnings per share growth, increase in net income, revenue growth and notable return on equity. We feel its strengths outweigh the fact that the company has had generally high debt management risk by most measures that we evaluated.
Highlights from the ratings report include:
- The stock has not only risen over the past year, it has done so at a faster pace than the S&P 500, reflecting the earnings growth and other positive factors similar to those we have cited here. Turning our attention to the future direction of the stock, it goes without saying that even the best stocks can fall in an overall down market. However, in any other environment, this stock still has good upside potential despite the fact that it has already risen in the past year.
- LOWE'S COMPANIES INC has improved earnings per share by 15.4% in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past two years. We feel that this trend should continue. During the past fiscal year, LOWE'S COMPANIES INC increased its bottom line by earning $2.70 versus $2.13 in the prior year. This year, the market expects an improvement in earnings ($3.29 versus $2.70).
- The net income growth from the same quarter one year ago has greatly exceeded that of the S&P 500, but is less than that of the Specialty Retail industry average. The net income increased by 8.4% when compared to the same quarter one year prior, going from $1,039.00 million to $1,126.00 million.
- Despite its growing revenue, the company underperformed as compared with the industry average of 8.6%. Since the same quarter one year prior, revenues slightly increased by 4.5%. Growth in the company's revenue appears to have helped boost the earnings per share.
- The company's current return on equity greatly increased when compared to its ROE from the same quarter one year prior. This is a signal of significant strength within the corporation. In comparison to other companies in the Specialty Retail industry and the overall market on the basis of return on equity, LOWE'S COMPANIES INC has underperformed in comparison with the industry average, but has greatly exceeded that of the S&P 500.
- You can view the full Lowe's Companies Ratings Report.
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