Zacks Investment Research upgraded shares of Lowe’s (NYSE:LOW) from a sell rating to a hold rating in a research note released on Friday.
According to Zacks, “Lowe’s shares have declined and underperformed the industry in the past three months. The stock came under pressure following the company's lower-than-expected fourth-quarter fiscal 2017 earnings and soft 2018 view. Even, the company’s revenues beat and comps growth failed to provide cushion. For fiscal 2018, the company anticipates earnings per share in the band of $5.40-$5.50, which was sharply below analysts' expectations. Meanwhile, estimates have been trending down. However, we believe improving job scenario, housing market recovery and merchandising initiatives along with efforts to enhance omni-channel capabilities bode well for Lowe’s. The buyout of Maintenance Supply Headquarters is also strengthening relationship with Pro customers. Notably, Pro growth rate in the fourth quarter and fiscal 2017 have outpaced do-it-yourself (DIY). Also, Canadian and Mexican businesses have been doing quite well.”
Other analysts have also issued reports about the company. Sanford C. Bernstein upgraded Lowe’s from an underperform rating to an outperform rating in a report on Monday, January 22nd. Jefferies Group upgraded Lowe’s from a hold rating to a buy rating and lifted their price target for the stock from $81.00 to $129.00 in a report on Monday, February 5th. Telsey Advisory Group upgraded Lowe’s from a market perform rating to an outperform rating and lifted their price target for the stock from $83.00 to $124.00 in a report on Thursday, January 25th. Loop Capital began coverage on Lowe’s in a report on Thursday, March 1st. They set a hold rating and a $88.00 price target on the stock. Finally, Stifel Nicolaus reiterated a buy rating and set a $105.00 price target on shares of Lowe’s in a report on Thursday, March 1st. One analyst has rated the stock with a sell rating, ten have assigned a hold rating and twenty-four have assigned a buy rating to the company. The stock presently has a consensus rating of Buy and a consensus price target of $99.00.
Shares of Lowe’s opened at $86.34 on Friday, Marketbeat reports. The firm has a market cap of $71.66 billion, a P/E ratio of 19.67, a price-to-earnings-growth ratio of 0.91 and a beta of 1.33. Lowe’s has a 12 month low of $70.76 and a 12 month high of $108.98. The company has a debt-to-equity ratio of 2.65, a quick ratio of 0.11 and a current ratio of 1.06.
Lowe’s (NYSE:LOW) last issued its quarterly earnings results on Wednesday, February 28th. The home improvement retailer reported $0.74 EPS for the quarter, missing the Zacks’ consensus estimate of $0.87 by ($0.13). The business had revenue of $15.49 billion for the quarter, compared to the consensus estimate of $15.34 billion. Lowe’s had a return on equity of 65.17% and a net margin of 5.02%. The business’s revenue was down 1.8% compared to the same quarter last year. During the same quarter last year, the business posted $0.86 earnings per share. research analysts anticipate that Lowe’s will post 5.46 EPS for the current year.
The business also recently declared a quarterly dividend, which was paid on Wednesday, May 9th. Stockholders of record on Wednesday, April 25th were given a $0.41 dividend. This represents a $1.64 annualized dividend and a dividend yield of 1.90%. The ex-dividend date of this dividend was Tuesday, April 24th. Lowe’s’s dividend payout ratio (DPR) is presently 37.36%.
Lowe’s declared that its Board of Directors has authorized a stock buyback plan on Friday, January 26th that authorizes the company to repurchase $5.00 billion in shares. This repurchase authorization authorizes the home improvement retailer to repurchase shares of its stock through open market purchases. Stock repurchase plans are typically an indication that the company’s board believes its shares are undervalued.
Several hedge funds and other institutional investors have recently made changes to their positions in the company. Magellan Asset Management Ltd grew its position in Lowe’s by 4.5% during the fourth quarter. Magellan Asset Management Ltd now owns 24,499,155 shares of the home improvement retailer’s stock worth $2,276,951,000 after buying an additional 1,059,347 shares in the last quarter. Geode Capital Management LLC grew its position in Lowe’s by 2.1% during the fourth quarter. Geode Capital Management LLC now owns 9,116,711 shares of the home improvement retailer’s stock worth $845,590,000 after buying an additional 187,857 shares in the last quarter. Bank of New York Mellon Corp grew its position in Lowe’s by 2.5% during the fourth quarter. Bank of New York Mellon Corp now owns 8,540,774 shares of the home improvement retailer’s stock worth $793,780,000 after buying an additional 208,072 shares in the last quarter. OppenheimerFunds Inc. grew its position in Lowe’s by 0.8% during the first quarter. OppenheimerFunds Inc. now owns 6,093,631 shares of the home improvement retailer’s stock worth $534,715,000 after buying an additional 48,900 shares in the last quarter. Finally, Bank of Montreal Can grew its position in Lowe’s by 28.4% during the fourth quarter. Bank of Montreal Can now owns 4,759,311 shares of the home improvement retailer’s stock worth $442,330,000 after buying an additional 1,053,158 shares in the last quarter. Institutional investors own 73.15% of the company’s stock.
Lowe’s Company Profile
Lowe's Companies, Inc, together with its subsidiaries, operates as a home improvement retailer in the United States, Canada, and Mexico. It offers a line of products for maintenance, repair, remodeling, and decorating. The company provides home improvement products in various categories, such as lumber and building materials, tools and hardware, appliances, fashion fixtures, rough plumbing and electrical, seasonal and outdoor living, lawn and garden, paint, millwork, flooring, and kitchens, as well as outdoor power equipment.
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