Lowe's first-quarter earnings and revenue exceeded analyst's estimates
Lowe's Companies, Inc (NYSE:LOW) followed its sector peer Home Depot (HD) into the earnings confessional this morning, but with much better results. The shares of the retailer are up 6% at $123.90 after the retailer posted a first-quarter profit and revenue beat, and an 11.2% rise in quarterly same-store sales, as stay-at-home orders forced more people to focus on building and home improvement projects. The company also withdrew its full-year forecast amid current economic uncertainty.
Lowe's stock has seen a fairly steady rise on the charts since its March 19, six-year bottom of $60, with today's surge putting it even closer to its late-February record highs atop the $124 level. Taking a closer look shows LOW's 320-day moving average recently emerging as a net on the charts, while the security also toppled a recent ceiling at it the $115 region earlier this week.
The majority of analysts are already bullish on LOW. Of the 23 in coverage, 19 call it a "buy" or better, while four say "hold." Meanwhile, the 12-month consensus price target of $121.20 is just a 3% premium to last night's close.
The options market is echoing this optimism. At the International Securities Exchange (ISE), Cboe Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), 2.37 calls have been picked up for every put in the last 10 days -- a ratio that sits higher than 92% of readings from the past year. This implies a much heatlher-than-usual appetite for long calls of late.