Is Lowe's (LOW) a Good Stock to Buy before Earnings?
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Furthermore, it's worth noting that Lowe's has beaten earnings estimates every quarter since its 2021 Q2. However, analysts aren't exactly rushing to recommend buying the stock. Indeed, Evercore ISI, led by five-star analyst Greg Melich, has added Lowe's to its 'Tactical Underperform List' ahead of the company's Q2 earnings report on August 20.
While the firm believes Lowe's full-year guidance is still on track, it argues that the stock may have run too far too fast due to a 15% rise over the past month. Meanwhile, Stifel's four-star-rated W. Andrew Carter raised his price target on Lowe's from $240 to $265, but still maintained a Hold rating. Interestingly, despite mixed trends in Q2, he attributes the stock's recent strength to optimism over falling interest rates, which has lifted valuation back to levels he believes more accurately reflect the company's medium- and long-term outlook.
What Do Options Traders Anticipate?
Using TipRanks' Options tool, we can see what options traders are expecting from the stock immediately after its earnings report. The expected earnings move is determined by calculating the at-the-money straddle of the options closest to expiration after the earnings announcement. If this sounds complicated, don't worry, the Options tool does this for you. Indeed, it currently says that options traders are expecting a 3.7% move in either direction.
What Is the Price Target for LOW?
Overall, analysts have a Moderate Buy consensus rating on LOW stock based on 15 Buys, eight Holds, and two Sells assigned in the past three months, as indicated by the graphic below. Furthermore, the average LOW price target of $262.43 per share implies 2.4% upside potential. At the same time, TipRanks' AI analyst has a Neutral rating and $241 price target.
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