Should You Buy Lowe’s Companies, Inc. (LOW)?

Over the last 52 weeks, Lowe’s Companies’ stock performed almost in line with the market, having inched down by around 3.70%. As one of the largest home improvement chains in the US, the company has benefitted greatly from the growth in the housing market as lower interest rates, lower unemployment and higher wages sparked an increase in spending on housing renovation. In this way, the company posted strong results for the last quarter, with sales advancing by 5.6% on the year to $13.24 billion, beating the estimates of $13.07 billion. Its same-store sales advanced by 5.2% in the quarter. At the same time Lowe’s Companies’ adjusted EPS amounted to $0.59, which was in line with estimates.

For the current year, Lowe’s anticipates its sales to advance by 6% to $62.62 billion, which tops the consensus estimate of a 4.8% growth. In this way, with the Fed not rushing to raise interest rates, the housing market is expected to continue its expansion, which means that Lowe’s stock can rebound from the losses registered for the past year and return to growth. Analysts are also optimistic on the stock and have a consensus price target of $80.50, implying an upside potential of around 14%.

With all of this in mind, we’re going to take a look at the new action encompassing Lowe’s Companies, Inc. (NYSE:LOW).