Lowe's Companies Inc. (LOW): Today's Featured Retail Winner

Editor's Note: TheStreet ratings do not represent the views of TheStreet's staff or its contributors. Ratings are established by computer based on metrics for performance (which includes growth, stock performance, efficiency and valuation) and risk (volatility and solvency). Companies with poor cash flow or high debt levels tend to earn lower ratings in our model.

Lowe's Companies ( LOW) pushed the Retail industry higher today making it today's featured retail winner. The industry as a whole closed the day up 0.8%. By the end of trading, Lowe's Companies rose 61 cents (1.6%) to $39.31 on light volume. Throughout the day, 6.7 million shares of Lowe's Companies exchanged hands as compared to its average daily volume of 9.6 million shares. The stock ranged in a price between $38.80-$39.39 after having opened the day at $38.90 as compared to the previous trading day's close of $38.70. Other companies within the Retail industry that increased today were: Ann ( ANN), up 7.9%, Roundys ( RNDY), up 5%, Delhaize Group ( DEG), up 5%, and Zumiez ( ZUMZ), up 4.8%.
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Lowe's Companies, Inc., together with its subsidiaries, operates as a home improvement retailer. It offers a range of products for maintenance, repair, remodeling, and home decorating. Lowe's Companies has a market cap of $43.67 billion and is part of the services sector. The company has a P/E ratio of 23, above the S&P 500 P/E ratio of 17.7. Shares are up 9% year to date as of the close of trading on Thursday. Currently there are 10 analysts that rate Lowe's Companies a buy, one analyst rates it a sell, and nine rate it a hold.

TheStreet Ratings rates Lowe's Companies as a buy. The company's strengths can be seen in multiple areas, such as its solid stock price performance, reasonable valuation levels and notable return on equity. We feel these strengths outweigh the fact that the company has had sub par growth in net income.

On the negative front, Foot Locker ( FL), down 7.1%, RadioShack ( RSH), down 4.1%, Orchard Supply Hardware ( OSH), down 2.5%, and Restoration Hardware Holdings ( RH), down 2.5%, were all laggards within the retail industry with Whole Foods Market ( WFM) being today's retail industry laggard.

For investors not wanting singular stock exposure, ETFs may be of interest. Investors who are bullish on the retail industry could consider SPDR S&P Retail ETF ( XRT) while those bearish on the retail industry could consider ProShares Ultra Sht Consumer Goods ( SZK).

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