Earnings Calendar (20May24) - should we buy LOWE to sell high?
Earnings Calendar (20 May 2024)
In the coming week, there are a few earnings of personal interest:
Nvidia, Alibaba and Lowe’s.
Let us look at Lowe’s recent performance
Who is Lowe’s
Lowe's Companies, Inc., together with its subsidiaries, operates as a home improvement retailer in the United States. The company offers a line of products for construction, maintenance, repair, remodeling, and decorating. It also provides home improvement products, such as appliances, seasonal and outdoor living, lawn and garden, lumber, kitchens and bath, tools, paint, millwork, hardware, flooring, rough plumbing, building materials, décor, and electrical. In addition, the company offers installation services through independent contractors in various product categories; and extended protection plans and repair services. It sells its national brand-name merchandise and private brand products to professional customers, homeowners, renters, businesses, and government. The company also sells its products through Lowes.com website; and through mobile applications. Lowe's Companies, Inc. was founded in 1921 and is based in Mooresville, North Carolina.
Recent performances of Lowe’s
Observations:
Revenue has seen a small decline but the gross margin is a reasonable 33.4%.
Gross profit margin has improved despite the drop in total quantum.
Operating profit has increased to $11.5B
EPS has reached a high of $13.20 in recent years.
The PE ratio for Lowe is at 17.45.
On top of the EPS at 13.24, the company provides A dividend yield of 1.90%.
The stock price rose 12.12% from a year ago and the prices have been ranging sideways since April 2024.
Investing has assigned a sell rating based on technical.
For the coming earnings release, the EPS and revenue forecasts are 2.95 and $21.14 billion respectively. We notice a trend of falling EPS for the last few quarters and a similar trend for the revenue. Even though the company can beat the forecast, we have concerns about the falling revenue and EPS.
Personally, I prefer to monitor this company for a while more.
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