Editor's Note: Any reference to TheStreet Ratings and its underlying recommendation does not reflect the opinion of TheStreet, Inc. or any of its contributors including Jim Cramer or Stephanie Link.
Trade-Ideas LLC identified
) as a pre-market laggard 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 $397.5 million.
- LOW traded 81,435 shares today in the pre-market hours as of 7:46 AM.
- LOW is down 3.2% today from yesterday's close.
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More details on LOW:
Lowe's Companies, Inc. operates as a home improvement retailer. It offers products for maintenance, repair, remodeling, and home decorating. The stock currently has a dividend yield of 1.4%. LOW has a PE ratio of 26.1. Currently there are 8 analysts that rate Lowe's Companies a buy, no analysts rate it a sell, and 9 rate it a hold.
The average volume for Lowe's Companies has been 7.4 million shares per day over the past 30 days. Lowe's Companies has a market cap of $54.5 billion and is part of the services sector and retail industry. The stock has a beta of 1.13 and a short float of 2.1% with 2.79 days to cover. Shares are up 43.3% year to date as of the close of trading on Monday.
rates Lowe's Companies as a
. The company's strengths can be seen in multiple areas, such as its impressive record of earnings per share growth, compelling growth in net income, revenue growth, good cash flow from operations and solid stock price performance. We feel these 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:
- LOWE'S COMPANIES INC has improved earnings per share by 37.5% 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 $1.68 versus $1.42 in the prior year. This year, the market expects an improvement in earnings ($2.18 versus $1.68).
- The net income growth from the same quarter one year ago has exceeded that of the S&P 500 and the Specialty Retail industry average. The net income increased by 25.9% when compared to the same quarter one year prior, rising from $748.00 million to $942.00 million.
- Despite its growing revenue, the company underperformed as compared with the industry average of 19.9%. Since the same quarter one year prior, revenues rose by 10.3%. Growth in the company's revenue appears to have helped boost the earnings per share.
- Net operating cash flow has significantly increased by 314.58% to $1,364.00 million when compared to the same quarter last year. In addition, LOWE'S COMPANIES INC has also vastly surpassed the industry average cash flow growth rate of 30.51%.
- Powered by its strong earnings growth of 37.50% and other important driving factors, this stock has surged by 62.44% over the past year, outperforming the rise in the S&P 500 Index during the same period. Looking ahead, the stock's sharp rise over the last year has already helped drive it to a level which is relatively expensive compared to the rest of its industry. We feel, however, that other strengths this company displays justify these higher price levels.
- You can view the full Lowe's Companies Ratings Report.