Lowe's Stock Could Build On Momentum Next Quarter

Short-term Lowe's options are a relative bargain right now, too

Managing Editor
Sep 25, 2018 at 2:42 PM
facebook X logo linkedin


Lowe's Companies, Inc. (NYSE:LOW) has really broken out in the past month. At last check, the home improvement stock was up 0.3% to trade at $115.10, but earlier came within a chip-shot of its Sept. 21 record high of $117.35. That mark could soon be toppled, as history suggests LOW shares could be headed even higher in the coming months.

Specifically, the stock's Schaeffer's Volatility Index (SVI) of 18% ranks in the 9th percentile of its annual range. This indicates short-term options are cheap, from a volatility perspective. What's more, per data from Schaeffer's Senior Quantitative Analyst Rocky White, the two other times LOW was trading within 2% of a new 52-week high while its SVI was ranked in the bottom 20th percentile of annual readings since 2008, the equity averaged a one-month gain of 5.58%, and was positive both times.

In addition, LOW is also one of the best stocks to own in the fourth quarter, according to Schaeffer's Senior Quantitative Analyst Rocky White. Going back 10 years, LOW stock has gained 3.86%, on average in the fourth quarter, with a win rate of 80%. 

On the charts, Lowe's stock already boasts a 24% lead in 2018, and recently gapped higher in late August following an upbeat quarterly report. Since then, the shares have been ushered higher by their ascending 10-day moving average.

Daily Stock Chart LOW

Lastly, the security has been a good target for premium buyers during the past year. That's according to its Schaeffer's Volatility Scorecard (SVS) of 95 out of 100, which shows Lowe's has tended to make much bigger moves on the charts compared to what the options market was expecting.

 

Target Effortless Triple-Digit Gains Every Sunday Evening For Life!

This is your chance to triple your profit potential on Sunday evenings, without spending all your free time watching the market.

On Sundays, as a Weekend Plus subscriber, you’ll get up to 6 trades every Sunday, each targeting gains of 200% or more.

Start targeting gains like the ones our subscribers have seen recently, including:

213.3% GAIN on AutoNation calls
100.0% GAIN on Monster Beverage calls
100.4% GAIN on Walgreens Boots Alliance puts
100.4% GAIN on ON Semiconductor calls
257.7% GAIN on Dell calls

101.0% GAIN on Apollo Global Management calls
103.6% GAIN on JP Morgan  Chase calls
105.3% GAIN on DraftKings calls
101.3% GAIN on Airbnb calls
203.0% GAIN on Shopify calls
102.0% GAIN on Cboe Global Markets calls
100.9% GAIN on Boeing calls
102.1% GAIN on Microsoft puts
102.3% GAIN on First Solar calls
101.5% GAIN on PulteGroup calls
101.0% GAIN on Apple calls
209.4% GAIN on NXP Semiconductors calls
100.8% GAIN on Uber Technologies calls
100.4% GAIN on Academy Sports and Outdoors puts
102.2% GAIN on Trade Desk calls
100.8% GAIN on DoorDash calls
100.0% GAIN on Camping World Holdings puts
100.0% GAIN on Cboe Global Markets calls
100.2% GAIN on C3.ai calls
238.5% GAIN on Oracle calls

 
 
 


 
 

Rainmaker Ads CGI