Lowe’s Companies (LOW) Offering Possible 10.31% Return Over the Next 27 Calendar Days

Lowe's Companies's most recent trend suggests a bearish bias. One trading opportunity on Lowe's Companies is a Bear Call Spread using a strike $200.00 short call and a strike $220.00 long call offers a potential 10.31% return on risk over the next 27 calendar days. Maximum profit would be generated if the Bear Call Spread were to expire worthless, which would occur if the stock were below $200.00 by expiration. The full premium credit of $1.87 would be kept by the premium seller. The risk of $18.13 would be incurred if the stock rose above the $220.00 long call strike price.

The 5-day moving average is moving down which suggests that the short-term momentum for Lowe's Companies is bearish and the probability of a decline in share price is higher if the stock starts trending.

The 20-day moving average is moving down which suggests that the medium-term momentum for Lowe's Companies is bearish.

The RSI indicator is at 47.1 level which suggests that the stock is neither overbought nor oversold at this time.

To learn how to execute such a strategy while accounting for risk and reward in the context of smart portfolio management, and see how to trade live with a successful professional trader, view more here

LATEST NEWS for Lowe's Companies

Lowe's Q1 Earnings: 3 Standout Numbers
Thu, 20 May 2021 15:47:37 +0000
Lowe's (NYSE: LOW) investors have a few good reasons to celebrate in early 2021. Sure, the home improvement giant's first-quarter report failed to extend its streak of market share wins against industry leader Home Depot (NYSE: HD). Comparable-store sales rose 26% overall year over year and increased 24% in the core U.S. market.

Lowe's 1st-Quarter Earnings Numbers
Thu, 20 May 2021 15:30:56 +0000
Cost-cutting efforts combined with better store traffic helped surpass earnings and revenue projections

Is Lowes Companies (LOW) Stock Outpacing Its Retail-Wholesale Peers This Year?
Thu, 20 May 2021 15:30:03 +0000
Is (LOW) Outperforming Other Retail-Wholesale Stocks This Year?

US Indexes Continue Selloff Wednesday for Another Lower Close
Thu, 20 May 2021 14:57:53 +0000
S&P 500 down -0.29%

Lowe’s Tops Q1 Expectations; Shares Dip
Thu, 20 May 2021 13:29:34 +0000
Lowe’s Companies Inc. (LOW) reported better-than-expected first-quarter results, backed by continued demand for home products. The home improvement company’s sales came in at $24.42 billion, up 24.1% year-over-year, surpassing the Street’s estimates of $23.46 billion. Earnings stood at $3.21 per share, up 81% year-over-year, and beat the Street’s estimates of $2.56 per share. Lowe’s operates as a home improvement retailer in the United States, Canada, and Mexico, offering a line of products for construction, maintenance, repair, remodeling, and decorating. Despite the strong results, shares of the company fell 1% to close at $190.72 on May 19, amid concerns about challenges in the housing market, such as high lumber prices. Consolidated comparable sales were up 25.9% and U.S. comparable sales increased 24.4%. By the end of the quarter, the company operated 1,972 retail stores in the United States and Canada, and serviced around 230 dealer-owned stores. (See Lowe’s stock analysis on TipRanks) Commenting on the results, Marvin R. Ellison, Lowe’s president and CEO said, “Our outstanding performance continued this quarter, as we delivered strong sales growth and operating margin expansion. We delivered over 30% growth in Pro, over 18% growth in all 15 U.S. regions, and growth in Canada that outpaced the U.S… Looking forward, I remain confident in our ability to accelerate our market share gains while driving further improvement in operating margin.” During the quarter, the company repurchased shares worth $3.1 billion and paid $440 million in dividends. The company’s current quarter sales are well ahead of its full-year 2021 guidance of $86 billion. In April, Lowe’s completed the acquisition of the STAINMASTER brand, one of the most recognized carpet brands in the U.S., adding to the company’s portfolio of private brands. Recently, Oppenheimer analyst Brian Nagel assigned a Buy rating to the stock with a price target of $235, which implies 23.2% upside potential to current levels. Nagel said, “While we remain concerned with likely softening sales and earnings trends at the company, as COVID-19 tailwinds continue to abate, we now view LOW as particularly attractive versus shares of other leading hardlines chains, including Home Depot, given a discounted share valuation and still significant business model slack.” Consensus among analysts is a Strong Buy based on 17 Buys and 3 Holds. The average analyst price target stands at $229.82 and implies upside potential of 20.5% to current levels. Shares have gained 18.9% year-to-date. Lowe’s scores a “Perfect 10” from TipRanks’ Smart Score rating system, indicating that the stock has strong potential to outperform market expectations. Related News: Great-West Lifeco Will Host Empower Retirement Investor Day on June 8 CAE Q4 Profit Drops 77% on Weaker Aviation Demand; Shares Plunge 8% TerrAscend Q1 Sales More Than Double, Raises Guidance for 2021 More recent articles from Smarter Analyst: Raytheon Partners with GLOBALFOUNDRIES to Enhance 5G and 6G Connections JetBlue Introduces Lower Fares into Transatlantic Air Travel Market Zoom Launches Zoom Events Platform; Street Sees 38.8% Upside Facebook Cites Technical Issues in Restricting Child Abuse Images – Report

Be Sociable, Share!

Related Posts


MarketTamer is not an investment advisor and is not registered with the U.S. Securities and Exchange Commission or the Financial Industry Regulatory Authority. Further, owners, employees, agents or representatives of MarketTamer are not acting as investment advisors and might not be registered with the U.S. Securities and Exchange Commission or the Financial Industry Regulatory.

This company makes no representations or warranties concerning the products, practices or procedures of any company or entity mentioned or recommended in this email, and makes no representations or warranties concerning said company or entity’s compliance with applicable laws and regulations, including, but not limited to, regulations promulgated by the SEC or the CFTC. The sender of this email may receive a portion of the proceeds from the sale of any products or services offered by a company or entity mentioned or recommended in this email. The recipient of this email assumes responsibility for conducting its own due diligence on the aforementioned company or entity and assumes full responsibility, and releases the sender from liability, for any purchase or order made from any company or entity mentioned or recommended in this email.

The content on any of MarketTamer websites, products or communication is for educational purposes only. Nothing in its products, services, or communications shall be construed as a solicitation and/or recommendation to buy or sell a security. Trading stocks, options and other securities involves risk. The risk of loss in trading securities can be substantial. The risk involved with trading stocks, options and other securities is not suitable for all investors. Prior to buying or selling an option, an investor must evaluate his/her own personal financial situation and consider all relevant risk factors. See: Characteristics and Risks of Standardized Options. The www.MarketTamer.com educational training program and software services are provided to improve financial understanding.

The information presented in this site is not intended to be used as the sole basis of any investment decisions, nor should it be construed as advice designed to meet the investment needs of any particular investor. Nothing in our research constitutes legal, accounting or tax advice or individually tailored investment advice. Our research is prepared for general circulation and has been prepared without regard to the individual financial circumstances and objectives of persons who receive or obtain access to it. Our research is based on sources that we believe to be reliable. However, we do not make any representation or warranty, expressed or implied, as to the accuracy of our research, the completeness, or correctness or make any guarantee or other promise as to any results that may be obtained from using our research. To the maximum extent permitted by law, neither we, any of our affiliates, nor any other person, shall have any liability whatsoever to any person for any loss or expense, whether direct, indirect, consequential, incidental or otherwise, arising from or relating in any way to any use of or reliance on our research or the information contained therein. Some discussions contain forward looking statements which are based on current expectations and differences can be expected. All of our research, including the estimates, opinions and information contained therein, reflects our judgment as of the publication or other dissemination date of the research and is subject to change without notice. Further, we expressly disclaim any responsibility to update such research. Investing involves substantial risk. Past performance is not a guarantee of future results, and a loss of original capital may occur. No one receiving or accessing our research should make any investment decision without first consulting his or her own personal financial advisor and conducting his or her own research and due diligence, including carefully reviewing any applicable prospectuses, press releases, reports and other public filings of the issuer of any securities being considered. None of the information presented should be construed as an offer to sell or buy any particular security. As always, use your best judgment when investing.