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Stocks of Lowe's Companies Inc (LOW:US, NYSE:LOW) were volatile a day before the release of its first-quarter earnings report, set to come out on Wednesday, May 19. Wall Street analysts appear bullish on the retail stock and expect higher revenue and profit growth for its latest quarter.
The company holds a double-digit share in home improvement products across the US. In the fourth quarter of fiscal 2020, Lowe’s posted an unexpected earnings rise of nine per cent.
Lowe's, the world’s second-largest home decoration products retailer, operates through its 1,970 stores across the US and Canada. Let us glance at the consumer cyclical stock’s performance during the extended stay-at-home orders in Canada.
Lowe's Companies Inc (LOW:US, NYSE:LOW)
A mega-large cap company, Lowe's has a market capitalization of US$ 139.14 billion. Its previous closing stock price was US$ 195.51 apiece.
The consumer stock has gained almost 22 per cent year-to-date (YTD), guided by the growing demand of the home improvement services due to evolving remote working culture. It rose nearly 71 per cent in the past one year and outshined the S&P 500 Home Improvements Retail Sub-industry.
Lowe's paid a quarterly dividend of US$ 0.60 for the first quarter of 2021. It has a notable three-year dividend growth of 13.51 per cent and a current dividend yield of 1.24 per cent.
Lowe's One-Year Price Movement Against Moving Average and Volume. (Source: EODHD/Others)
Its stock’s price movement is almost in line with the moving average trajectory. At the previous closing price, Lowe's stock was up 13.73 per cent from its 200-day simple moving average (SMA).
However, it was down by about three per cent from its 30-day SMA, which could improve on the back of its projected robust earnings.
Lowe’s witnessed a 12.1 per cent rise in comparable average tickets and a 14 per cent year-over-year (YoY) surge in customer transactions during the previous year. The company estimates this trend to continue for the first quarter of 2021.
The sharp transition from offices to work-from-home regime is likely to allow Lowe's to beef up its services for clients looking to revamp or build a home office in the post-pandemic era.
The above constitutes a preliminary view and any interest in stocks should be evaluated further from investment point of view.
