Lowe's Stock Keeps Building After Earnings, Revenue Beat

The company enjoyed an 11.2% rise in quarterly same-store sales

Digital Content Manager
May 20, 2020 at 9:12 AM
facebook twitter linkedin

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. 



If you are not making money with options, you aren’t buying options like this…

There is no options strategy that more perfectly approaches trading the fastest moving and most volatile stocks available in the marketplace than this one. In fact, there is no strategy that better utilizes put options for optimal returns and a real trading edge over other traders in the exact same market. New options traders fail out at an incredible rate without proper trade research, execution timing, and option picking. Capitalize on Schaeffer’s 100+ years of options trading excellence with the most coveted product launch in company history. Don't waste another second... join us right now before the next round of trades are released!



Special Offers from Schaeffer's Trading Partners