Score 8.6 (out of 10): LOWE’S COS INC poised to seasonally rally by +6.8% during the next 60 days.

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What’s Going On Here?

LOWE continues to generate robust cash that will be used for significant stock buybacks ($10bn with a 35% dividend payout ratio) as well as approximately $2bn a year toward capital spending. Home Depot and LOWE have been on a multi-year investment cycle to improve stores, expand supply-chain capabilities and the omni-channel experience.

Why Now?

LOWE’S COS INC indicates an interesting 60 days seasonal set up. During similar occasions, LOWE’S COS INC shares had a median return of +6.8% – based on 10 historical occasions with 10 of those showing positive returns (100%). This buy signal for LOWE’S COS INC received a high score of 8.6 (out of 10). This insight was generated with last price of 232.32.

What’s This Company About?

LOWE’S COS INC is in the Retail-Building Products business. Based on the last 2 years’ risk/return profile, this asset is seen as Less Risky. ‘Wall Street’ analysts think the stock price will be worth -0.7% less (average). Ticker symbol: LOW US.

What’s My Risk / Reward and Time Horizon?

We found 60 days to be the optimal trade horizon, after testing a number of possible alternatives (accuracy of previous returns). Otherwise consider closing out this trade once the target level of 248.08 (+6.8%) has been reached. Based on the stock’s recent up and down swings, LongShortBets suggests considering to set a stop loss level for this insight at 222.62 (last price at 232.32), which is equivalent to a -4.2% decline.

Returns during similar periods:

The chart above shows the previous returns (in %) based on similar setups with the most recent ‘insight’ shown under (1), the second most recent ‘insight’ shown under (2), etc. 

Previous episodes:

7.8% (November-2021), 5.8% (November-2020), 0% (November-2019), 21.6% (November-2018), 3% (November-2017), 2% (November-2016), 16.2% (November-2015), 1.7% (November-2014), 12.7% (November-2013), 17.2% (November-2012)

Summary:

Name LOWE’S COS INC
ViewUp
Star (1 to 10)8.6
Target+6.8%
Time60 days
Hit Rate100%

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