Lowe's Stock Plunges Amid Mixed Analyst Views
Lowe's Companies (NYSE: LOW) stock has been on a downward trend, closing in the red for eight consecutive days. The stock's performance has raised questions about its growth potential, despite positive analyst ratings.
Earlier this month, an analyst from Seeking Profits downgraded Lowe's stock to 'Sell' from 'Hold', marking the beginning of the stock's decline. The analyst noted that the shares were trading above 20x earnings, indicating full valuation and limited upside. This downgrade followed a Buy call from ABI Invest, which expected benefits from various factors such as sequential comp sales momentum and Fed rate cuts.
The stock has since lost 5.3% between September 29 and October 7, closing 1.48% lower at $253.32 on October 7. On a year-to-date basis, the stock has lost 3.5%. Despite these losses, Wall Street analysts maintain a largely positive outlook, with 21 analysts rating the stock a 'Buy' or above, 13 with 'Hold' recommendations, and only 1 with a 'Sell' call. Seeking Alpha's quant ratings also recommend a 'Hold', with an A+ grade for profitability but a D for growth.
Lowe's Companies stock continues to face challenges, with a recent downgrade and consecutive daily losses. While analyst opinions remain mostly positive, the stock's growth potential is a topic of debate. Investors will be watching for signs of recovery or further decline in the coming days.
