LOW nabbed a record high last Friday
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.
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.