Lowe’s Companies, Inc. (NYSE:LOW) Faces A Negative Report From Cleveland


Dallas, Texas 10/23/2013 (Financialstrend) – Lowe’s Companies, Inc. (NYSE:LOW) is a $51.42 billion home improvement store and counts Home Depot as one of its primary competitors.  In the past week the stock has been under pressure. It has managed to hold on to its market valuation by shedding just 0.17% during trading last week. The weakness in the past few days can be traced back to a October 18 report from Cleveland Research which has projected low to very average revenue forecast for both the retailing chains. The report gathers added weight with investors since the rating agency is renowned for sending in its foot soldiers into the field to gather store traffic information first hand and does an exhaustive debrief with channel sales partners of the companies on whom it is putting together a report.

The Cleveland report was preceded by one more from Stanley Black & Decker on October 16. This report too was downcast in its forecast for the two retailers and was based on some not very promising numbers discussed in NAHB housing market index.

Considering the negative sentiment that these two ratings agency reports had generated, Lowe’s Companies, Inc. (NYSE:LOW) stock has done a good job of trying to hold fort in terms of holding on to its market value. In the past month it has gained close to 2.34% and by 29% in the past 6 months. Not only has the stock appreciated in value, but has also been paying out dividend yields in the range of 1.49% over the past 12 months. In spite of a continued general drag in the housing sector over the past couple of years, this bell weather of Housing improvement sector has managed to post  sales of $51.9 billion in the past 12 months and net income of $2.15 billion. Analysts have a PT of $50.59 on this stock.