Higher interest rates and home costs resulted in a lackluster sales and profit forecast
Just a day after competitor Home Depot (HD) had its turn in the earnings confessional, Lowe's Companies Inc (NYSE:LOW) revealed a top- and bottom-line win for the fourth quarter amid improving sales. The home improvement retailer also saw demand fall amid higher interest rates and home costs, however, issuing a lackluster sales and profit forecast for the year.
LOW is up 3.6% to trade at $251 at last glance, after yesterday snapping a six-day losing streak. The stock has only had three positive weeks since the beginning of the year, but still added 12.6% over the last six months. The shares are extending a bounce off their lowest level since August, but overhead pressure remains at their 20-day moving average.
Analysts have yet to chime in on the results, but already lean bullish on LOW, with 21 of the 32 in coverage sporting a "buy" or better rating. Plus, the 12-month consensus target price of $283.71 is a 17.1% premium to current levels.
That optimism is echoed in the options pits. This is per LOW's 50-day call/put volume ratio of 1.54 at the International Securities Exchange (ISE), Cboe Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), which stands higher than 70% of annual readings.