Important note

This AI stock analysis for Lowe's is not up to date. Creating and accessing our AI stock Analysis (powered by our data and Chat GPT) is only available for our premium users. Sign up to get access today!

Lowe's - AI Stock Analysis

Analysis generated June 17, 2024

Lowe's Companies, Inc. (NYSE: LOW) is a well-known American retail company specializing in home improvement. Founded in 1946, Lowe's operates over 2,200 stores in the United States and Canada. The company provides a wide array of products including appliances, tools, hardware, lumber, building materials, and more. It's a key player in the home improvement retail industry, competing with other large chains like Home Depot.

Fundamental Analysis

Lowe's reported a revenue of $21 billion for the last quarter. This represents a 15.16% increase compared to the previous quarter, signaling strong sequential growth. However, revenue has decreased by 4.78% compared to the same quarter last year, which might indicate underlying challenges or market changes that need to be monitored closely.

Net income for the last quarter was $1.76 billion. This is a robust 72.06% increase from the previous quarter, suggesting improving profitability. Yet, similar to revenue, net income has dropped by 22.35% compared to the same quarter last year, which may be a red flag for long-term profitability sustainability.

EBITDA for the last quarter stood at $3.1 billion. This marked a sequential increase of 44.01%, showcasing improved operational efficiency. On a year-over-year basis, however, EBITDA has decreased by 16.65%, echoing the concerns seen in revenue and net income.

The current Price-to-Earnings (P/E) ratio is 17.88, indicating that the stock is reasonably priced compared to its earnings. This P/E ratio can be seen as neither particularly high nor low, suggesting that the market views Lowe's earnings prospect with a balanced perspective.

Technical Analysis

Today's stock price for Lowe's is $223.35, which represents a decrease of 3.36% compared to a month ago. This decline might be concerning in the short term; however, compared to a year ago, the stock price has increased by 5.01%, indicating a positive long-term trend.

The general market trend for Lowe's is bullish. The current 10-day Simple Moving Average (SMA) is 221.51, which is above the previous 10-day SMA of 220.84. This upward trend in SMA suggests the potential for continued price improvement.

However, the Relative Strength Index (RSI) is 76.3, indicating that the stock may be overbought. An RSI above 70 is typically considered a bearish signal, suggesting a potential for a price correction.

Alternative Data Analysis

Job postings and employee sentiment provide further context. Lowe's currently has 5,000 open positions, a decrease of 22% in recent months. This reduction could point to efforts to cut costs or improve margins, which is not typically a positive indicator for a growing company. Employee sentiment is neutral, suggesting no significant positivity or negativity from the workforce.

Customer acquisition trends appear positive. Lowe's has seen an estimated 140 million visitors to their website, an increase of 20% over the last couple of months. Mobile app downloads also show an encouraging trend, with 12,000 users downloading the app daily, up by 13% recently. These figures are bullish indicators as they suggest potential upticks in customer engagement and sales.

Customer engagement metrics on social media show mixed results. Lowe's Instagram page boasts 940,000 followers, with no significant change recently. On Twitter, Lowe's has 300,000 followers, a slight decrease of 1% in the past couple of months, indicating a minor loss of interest among followers.

AltIndex's AI score for Lowe’s is 47, which is a hold signal. This score takes into account various factors across fundamental, technical, and alternative data analyses to provide a well-rounded perspective.

Conclusion

Overall, Lowe's shows mixed signals across various areas of analysis. On the fundamental side, despite strong sequential growth, the year-over-year declines in revenue, net income, and EBITDA raise some concerns. On the technical front, while the stock price trend is bullish, the high RSI suggests caution due to potential overbought conditions. Alternative data presents a mixed picture with positive customer acquisition trends but less encouraging employment figures and social media engagement.

Given the balanced but slightly cautious outlook across these analyses, the recommendation based on all available data is to hold Lowe's stock. Investors should keep a close eye on upcoming quarterly results for any signs of consistent year-over-year performance improvement and monitor economic conditions that might affect consumer spending in the home improvement sector.

Disclaimer: This AI stock analysis, generated by an experimental AI tool, is for informational purposes only and not financial advice. Information is based on publicly available data and may not always be accurate or current.