Zacks Investment Research Upgrades Lowe’s Cos. (LOW) to Buy
Lowe’s Cos. (NYSE:LOW) was upgraded by Zacks Investment Research from a “hold” rating to a “buy” rating in a report issued on Tuesday. The firm presently has a $78.00 price objective on the home improvement retailer’s stock. Zacks Investment Research’s price target points to a potential upside of 11.05% from the company’s previous close.
According to Zacks, “An improving job picture, gradual recovery in the housing market and merchandising initiatives along with efforts to provide better omni-channel customer experience bode well for Lowe’s. It also remains well positioned to reap the benefits of strategic acquisitions done earlier. Lowe’s updated its fiscal 2016 guidance to reflect the buyout of RONA, and now expects total sales growth of about 10%. Net sales rose 5.3% in the second quarter but missed the Zacks Consensus Estimate after having surpassed the same in the trailing four quarters. Lowe’s also delivered a negative earnings surprise, although it managed to register an increase of 14.2%. Despite year over year growth in both top and bottom lines, management cut its full-year earnings forecast. Analysts also pointed that the company’s expansion into regions where it already operates could cannibalize its sales performance and lower traffic count at existing stores.”
Several other analysts also recently weighed in on the stock. Credit Suisse Group AG set a $80.00 target price on shares of Lowe’s Cos. and gave the stock a “buy” rating in a research report on Friday, September 23rd. Robert W. Baird set a $88.00 target price on shares of Lowe’s Cos. and gave the stock a “buy” rating in a research report on Monday, September 19th. Morgan Stanley set a $87.00 target price on shares of Lowe’s Cos. and gave the stock a “buy” rating in a research report on Friday, August 19th. BMO Capital Markets boosted their target price on shares of Lowe’s Cos. from $76.43 to $86.00 and gave the stock an “outperform” rating in a research report on Monday, August 22nd. Finally, Bank of America Corp. reissued a “buy” rating and set a $87.65 target price (up previously from $77.30) on shares of Lowe’s Cos. in a research report on Wednesday, August 24th. Seven analysts have rated the stock with a hold rating, twenty-one have issued a buy rating and one has given a strong buy rating to the stock. The company currently has a consensus rating of “Buy” and an average target price of $85.62.
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Shares of Lowe’s Cos. (NYSE:LOW) traded up 0.37% during mid-day trading on Tuesday, hitting $70.24. 5,955,140 shares of the stock were exchanged. Lowe’s Cos. has a 52-week low of $62.62 and a 52-week high of $83.65. The stock’s 50-day moving average price is $72.53 and its 200-day moving average price is $77.03. The company has a market cap of $61.44 billion, a P/E ratio of 22.77 and a beta of 1.14.
Lowe’s Cos. (NYSE:LOW) last issued its quarterly earnings data on Wednesday, August 17th. The home improvement retailer reported $1.37 earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of $1.41 by $0.04. Lowe’s Cos. had a return on equity of 43.38% and a net margin of 4.58%. The firm earned $18.26 billion during the quarter, compared to analysts’ expectations of $18.42 billion. During the same period in the previous year, the firm earned $1.20 EPS. The firm’s quarterly revenue was up 5.3% on a year-over-year basis. Equities research analysts anticipate that Lowe’s Cos. will post $4.02 earnings per share for the current fiscal year.
The business also recently announced a quarterly dividend, which will be paid on Wednesday, November 2nd. Shareholders of record on Wednesday, October 19th will be given a $0.35 dividend. The ex-dividend date of this dividend is Monday, October 17th. This represents a $1.40 dividend on an annualized basis and a yield of 1.99%. Lowe’s Cos.’s payout ratio is currently 45.16%.
Hedge funds and other institutional investors have recently bought and sold shares of the stock. CWM LLC boosted its stake in shares of Lowe’s Cos. by 0.3% in the second quarter. CWM LLC now owns 1,264 shares of the home improvement retailer’s stock valued at $100,000 after buying an additional 4 shares in the last quarter. Parkside Financial Bank & Trust boosted its stake in shares of Lowe’s Cos. by 0.6% in the second quarter. Parkside Financial Bank & Trust now owns 3,006 shares of the home improvement retailer’s stock valued at $238,000 after buying an additional 19 shares in the last quarter. Mariner Wealth Advisors LLC boosted its stake in shares of Lowe’s Cos. by 0.8% in the first quarter. Mariner Wealth Advisors LLC now owns 2,885 shares of the home improvement retailer’s stock valued at $219,000 after buying an additional 23 shares in the last quarter. Highland Private Wealth Management boosted its stake in shares of Lowe’s Cos. by 1.1% in the second quarter. Highland Private Wealth Management now owns 2,734 shares of the home improvement retailer’s stock valued at $217,000 after buying an additional 29 shares in the last quarter. Finally, Aull & Monroe Investment Management Corp boosted its stake in shares of Lowe’s Cos. by 0.3% in the second quarter. Aull & Monroe Investment Management Corp now owns 9,892 shares of the home improvement retailer’s stock valued at $783,000 after buying an additional 30 shares in the last quarter. 75.45% of the stock is currently owned by institutional investors.
About Lowe’s Cos.
Lowe’s Companies, Inc (Lowe’s) is a home improvement retailer. The Company operates approximately 1,860 home improvement and hardware stores, representing approximately 200 million square feet of retail selling space. The Company operates approximately 1,800 stores located across over 50 states in the United States, including approximately 80 Orchard Supply Hardware (Orchard) stores in California and Oregon, as well as approximately 40 stores in Canada and over 10 stores in Mexico.
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