Zacks Investment Research Lowers Lowe’s Companies, Inc. (LOW) to Sell
Zacks Investment Research downgraded shares of Lowe’s Companies, Inc. (NYSE:LOW) from a hold rating to a sell rating in a research report report published on Monday morning.
According to Zacks, “Lowe’s shares have slid and underperformed the industry in the past three months. In fact, the stock came under pressure after it posted weaker-than-expected second-quarter fiscal 2017 results. This was the second quarter in row wherein both the top and bottom lines fell short of the Zacks Consensus Estimate. Nevertheless, both sales and earnings grew year over year, albeit at a rate lower than the preceding quarter. However, comps showed considerable improvement. Further, improving job scenario, recovery in the housing market and merchandising initiatives along with efforts to enhance omni-channel capabilities bode well. Management continues to expect sales to increase 5% with comps growth of 3.5% during fiscal 2017. However, lower-than-expected second-quarter results and investment plans compelled Lowe’s to trim fiscal 2017 earnings view. Lowe’s investment in customer-facing hours in stores and promotions will hurt margins.”
LOW has been the topic of several other reports. Oppenheimer Holdings, Inc. set a $100.00 price objective on shares of Lowe’s Companies and gave the stock a buy rating in a research note on Wednesday, May 24th. Wolfe Research reaffirmed an outperform rating and set a $94.00 price objective (down from $95.00) on shares of Lowe’s Companies in a research note on Sunday, May 28th. Sanford C. Bernstein reaffirmed an underperform rating and set a $69.00 price objective on shares of Lowe’s Companies in a research note on Wednesday, July 12th. BidaskClub raised shares of Lowe’s Companies from a strong sell rating to a sell rating in a research note on Wednesday, August 2nd. Finally, Robert W. Baird set a $87.00 price objective on shares of Lowe’s Companies and gave the stock a buy rating in a research note on Thursday, August 24th. Four investment analysts have rated the stock with a sell rating, nine have given a hold rating and thirteen have given a buy rating to the stock. Lowe’s Companies has a consensus rating of Hold and an average price target of $84.57.
Shares of Lowe’s Companies (LOW) opened at 73.91 on Monday. Lowe’s Companies has a 12 month low of $64.87 and a 12 month high of $86.25. The company has a 50 day moving average price of $75.99 and a 200-day moving average price of $79.50. The firm has a market capitalization of $61.86 billion, a PE ratio of 20.99 and a beta of 1.08.
Lowe’s Companies (NYSE:LOW) last issued its quarterly earnings data on Wednesday, August 23rd. The home improvement retailer reported $1.57 earnings per share for the quarter, missing the Thomson Reuters’ consensus estimate of $1.62 by $0.05. The firm had revenue of $19.50 billion for the quarter, compared to the consensus estimate of $19.58 billion. Lowe’s Companies had a return on equity of 62.02% and a net margin of 4.51%. Lowe’s Companies’s quarterly revenue was up 6.8% compared to the same quarter last year. During the same period in the prior year, the company posted $1.37 earnings per share. Equities research analysts expect that Lowe’s Companies will post $4.50 EPS for the current fiscal year.
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The firm also recently disclosed a quarterly dividend, which will be paid on Wednesday, November 8th. Investors of record on Wednesday, October 25th will be issued a $0.41 dividend. The ex-dividend date of this dividend is Tuesday, October 24th. This represents a $1.64 annualized dividend and a yield of 2.22%. Lowe’s Companies’s dividend payout ratio is currently 46.20%.
A number of institutional investors have recently made changes to their positions in LOW. Lord Abbett & CO. LLC raised its position in shares of Lowe’s Companies by 81.0% in the second quarter. Lord Abbett & CO. LLC now owns 2,131,387 shares of the home improvement retailer’s stock valued at $165,247,000 after buying an additional 953,787 shares in the last quarter. Phocas Financial Corp. purchased a new stake in Lowe’s Companies during the second quarter valued at $268,000. RNC Capital Management LLC raised its stake in Lowe’s Companies by 0.9% in the second quarter. RNC Capital Management LLC now owns 49,916 shares of the home improvement retailer’s stock valued at $3,870,000 after buying an additional 439 shares during the period. Atlantic Trust LLC purchased a new stake in Lowe’s Companies during the second quarter valued at $105,000. Finally, WFG Advisors LP raised its stake in Lowe’s Companies by 34.5% in the second quarter. WFG Advisors LP now owns 2,846 shares of the home improvement retailer’s stock valued at $221,000 after buying an additional 730 shares during the period. Institutional investors and hedge funds own 72.91% of the company’s stock.
About Lowe’s Companies
Lowe’s Companies, Inc (Lowe’s) is a FORTUNE home improvement company. The Company operates approximately 2,370 home improvement and hardware stores. The Company offers a range of products for maintenance, repair, remodeling and decorating. The Company offers home improvement products in categories, including Lumber and Building Materials; Tools and Hardware; Appliances; Fashion Fixtures; Rough Plumbing and Electrical; Lawn and Garden; Seasonal and Outdoor Living; Paint; Flooring; Millwork, and Kitchens.
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