Lowes Companies, Inc. (NYSE: LOW)
Lowes Companies, Inc. (LOW), a home improvement retailer company yesterday announced positive third quarter sales and earnings results. Net earnings was $736 million a 25.8% increase over third quarter 2014. Diluted earnings per share was $0.80 a 35.6% increase over third quarter 2014.
Lowes Companies, Inc. CEO Comments
“This is an exciting time for Lowe’s as we continue to execute our strategic priorities alongside a favorable macroeconomic backdrop,” commented Robert A. Niblock, Lowe’s chairman, president and CEO. “I am pleased that we delivered another solid quarter. Comparable sales growth was driven by gains in both transactions and average ticket, while our focus on productivity and profitability also allowed us to deliver strong earnings per share growth.”
“I would like to thank our employees for their purposeful commitment to serving customers, particularly those who worked diligently to assist our neighbors that were impacted by the historic flooding in South Carolina,” Niblock added. PR Newswire
LOW Technical Analysis
LOW gapped up in price yesterday to $74.28, up from the prior day’s close of $72.85, which is a 2% increase on the favorable news. Taking a look at the daily chart, we can see the last time LOW traded above this price level was on August 19th, when it closed at $74.37. On that occasion, LOW dropped all the way to $66.90 on August 25th, a 10% drop in price. Those two prices have developed the range for the stock over the past few months. As of September 9th, the bottom of the range ($67.00) was tested and held, while at the end of October the top of the range ($74.50) also held. It will be interesting to see if on this positive news LOW can break through the top of the range. LOW has a high float of 923.83 million shares and was trading below the normal daily trading volume. LOW did reach pre market highs of $75, but gave back $0.72 at the open. For trading purposes, my entry point would have been $74.40 looking for a run to $75. My stop loss would have been $74.20, fearing anything below that and the stock would start to fill in the gap up.
Lowes Companies, Inc. operates as a home improvement retailer. The company offers products for maintenance, repair, remodeling, and home decorating. It provides home improvement products under the categories of kitchens and appliances; lumber and building materials; tools and hardware; fashion fixtures; rough plumbing and electrical; lawn and garden; seasonal living; paint; home fashions; storage and cleaning; flooring; millwork; and outdoor power equipment. The company also offers installation services through independent contractors in various product categories; extended protection plans; and in-warranty and out-of-warranty repair services. It provides national brand-name merchandise and private branded products. The company serves individual homeowners and renters, including do-it-yourself customers and do-it-for-me customers; and professional customers, such as construction trades, as well as maintenance, repair, and operations. As of August 19, 2015, it operated approximately 1,845 home improvement and hardware stores in the United States, Canada, and Mexico. The company also sells its products through online sites comprising Lowes.com, Lowes.ca, and ATGstores.com, as well as through mobile applications. Lowes Companies, Inc. was founded in 1946 and is based in Mooresville, North Carolina. Yahoo Finance