In a report by Wall Street Strategies, Brian Sozzi provides a valuation and ratings analysis on Lowe's LOW.
“Lowe's encountered a three-headed beast in 1Q11; lag impact on consumer spending on home improvement goods from softening home values; unfavorable weather which appears to have delayed purchases of patios, grills, and other spring merchandise; and tough comparisons to year ago government stimulus,” Sozzi writes.
“We think, however, that Home Depot HD believe it or not continues to compete more effectively for those precious dollars devoted to home improvement, something hinted in Lowe's press release this morning (it needs to drive better ‘customer experiences').
“While Home Depot is not exactly king daddy in terms of customer service (specialty store it is not), it has improved from a low base, and management has done a good job at articulating the low price portions relative to Lowe's. The launch of a 5% rewards program by Lowe's for those that use its credit card is classic evidence that share has swung in favor of Home Depot.”
Lowe's currently trades at $25.19.
Market News and Data brought to you by Benzinga APIs© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
date | ticker | name | Price Target | Upside/Downside | Recommendation | Firm |
---|
Posted In:
Benzinga simplifies the market for smarter investing
Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.
Join Now: Free!
Already a member?Sign in