Lowe's Lowers Guidance Despite Strong Quarter

Lowe's Companies Inc (NYSE:LOW) has reversed its premarket losses, last seen up 2.7% to trade at $208.69. The home improvement retailer reported better-than-expected first-quarter results, but lowered its 2023 profit and sales forecasts. 

LOW is a choppy one on the charts, slipping to the $187 level in March and surging as high as $212.40 in April. However, it's worth also noting that most short- and long-term moving averages are settled just below the stock's current trading levels as potential support. 

So far in the options pits, 11,000 calls and 14,000 puts have been exchanged, which is four times the amount typically seen at this point. The weekly 5/26 210-strike call is the most active, with new positions opening there, followed by the 200-strike put in that series.

Puts have been extremely popular leading up to the earnings event, per LOW's 50-day put/call volume ratio 1.82 at the International Securities Exchange (ISE), Cboe Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), which ranks higher than 92% of readings from the past year. 

Analysts have yet to chime in today, but 13 of the 25 analysts in coverage carry a "buy" or better rating, while 12 say "hold" or worse." Meanwhile, the 12-month consensus price target of $227.83 sits at a 9.6% premium to current levels.