Lowe's Companies, Inc. : Ready to build a technical rebound
Entry price | Target | Stop-loss | Potential |
---|
$25.55 |
$0 |
$24.5 |
-100% |
---|
Lowe's Companies, the second chain of retail home improvement in USA (the leader is Home Depot), shows relatively strong fundamentals and is coming back to attractive price.
From a fundamental viewpoint, the security is cheap with a PER of 14.06x for 2013 and 11.56x for 2014. Even if the sector seems overvalued, the stock offers a good trading opportunity. Besides, EV/Sales is low with a ratio at 0.76x for this year.
Currently the stock is oversold and, in the mid-term, it is trading in a bearish trend. In the short term, this trend is reversed upon contact with the USD 25.49 area. This support is a trading opportunity in order to anticipate a technical rebound towards USD 27.85 and by extension towards USD 32.1.
Considering technical and fundamental elements, it seems to be an appropriate timing to take immediately a long position. In order to benefit from the USD 25.49 support area. A first target price will be the USD 27.85 resistance and a stop loss order will be placed under the mid-term support currently tested.
The content herein constitutes a general investment recommendation, prepared in accordance with provisions aimed at preventing market abuse by Surperformance, the publisher of MarketScreener.com. More specifically, this recommendation is based on factual elements and expresses a sincere, complete, and balanced opinion. It relies on internal or external data, considered reliable as of the date of their release. Nevertheless, this information, and the resulting recommendation, may contain inaccuracies, errors, or omissions, for which Surperformance cannot be held responsible. This recommendation, which in no way constitutes investment advice, may not be suitable for all investor profiles. The reader acknowledges and accepts that any investment in a financial instrument involves risks, for which they assume full responsibility, without recourse against Surperformance. Surperformance commits to disclosing any conflict of interest that may affect the objectivity of its recommendations.