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With a market cap of $124.3 billion, North Carolina-based Lowe's Companies, Inc. (LOW) is a leading home improvement company that offers a range of products for maintenance, repair, remodeling, and decorating. The company also provides installation services, extended protection plans, and in-warranty and out-of-warranty repair services, setting itself apart from industry rivals.
Companies worth $10 billion or more are generally described as “large-cap stocks,” and Lowe’s fits right into that category. With a market cap that surpasses the threshold, Lowe's substantial size, stability, and influence in the retail sector is undeniable. The company has invested heavily in its omnichannel retail capabilities, enabling customers to transition seamlessly between online and in-store shopping. Besides, Lowe's, the second-largest hardware chain in the U.S., is among the Fortune 500 companies.
Despite the positives, shares of Lowe’s are down 16.9% from their 52-week high of $262.49, achieved on March 22. Moreover, LOW stock has declined 9.9% over the past three months, compared to the Vaneck Retail ETF (RTH), which fell marginally over the same time frame.
In the longer term, LOW stock is down 2% on a YTD basis and has surged 4.3% over the past 52 weeks. By contrast, the RTH is up 8.6% in 2024 and 22.2% over the past year.
To confirm the bearish price trend, Lowe’s has been trading below its 50-day and 100-day moving averages since mid-May.
Lowe's stock has been held back by higher interest rates and inflationary pressures, which have led consumers to prioritize spending on discretionary services and experiences over home improvement projects.
On the bright side, Lowe's is partnering with big tech companies like Apple Inc. (AAPL) and NVIDIA Corporation (NVDA) to enhance its retail offerings. These include using augmented and virtual reality to help customers visualize products and implementing robotics and automation in warehouses and stores to improve efficiency and productivity.
To underscore the stock's lagging performance, it's notable to compare its price movement with that of its competitor, The Home Depot, Inc. (HD), whose shares have surged by 11.4% over the past 52 weeks and tumbled by 4.4% on a YTD basis.
Aligning with Lowe’s solid performance, analysts are optimistic about its future. The stock has a consensus rating of “Moderate Buy” from the 30 analysts covering it, and its mean price target of $249.52 reflects an upside potential of 14.4% from the current price level.
On the date of publication, Kritika Sarmah did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
