Lowe’s Companies Inc’s (LOW) third-quarter earnings, reported on Wednesday, exceeded Wall Street estimates, as industrial items such as drills and power saws lured more high-spending building contractors. The home improvement chain also revised up its full-year adjusted earnings forecast.
Shares of Lowe’s Companies Inc closed higher for the fifth time in the past ten trading sessions in New York on Wednesday. It has also been the sharpest daily surge since August 29th. The stock went up 3.91% ($4.43) to $117.83, after touching an intraday high at $121.02 and also a fresh all-time high.
Shares of Lowe’s Companies Inc have risen 27.58% so far in 2019 compared with a 24.00% gain for the benchmark index, S&P 500 (SPX).
In 2018, Lowe’s stock went down 0.62%, thus, it again outperformed the S&P 500, which registered a 6.24% loss.
Sales at stores, which are open for at least 13 months, grew 2.2% year-on-year during the third quarter ended on November 1st, while falling short of the median analyst estimate of a 3.1% growth.
Lowe’s said that 34 underperforming stores would be shut down, while its corporate structure in Canada would be reorganized.
Meanwhile, the chain’s earnings per share, which exclude special items, were reported at $1.41 during the latest fiscal quarter. That compares with a median analyst forecast of $1.35 per share.
Lowe’s said it now expected full-year adjusted earnings within the range of $5.63 to $5.70 per share, up from a previously expected range of $5.45 to $5.65 per share.
The company also expects a 2% growth in its total sales during fiscal year 2019 and a 3% growth in its comparable sales.
Analyst stock price forecast and recommendation
According to CNN Money, the 27 analysts, offering 12-month forecasts regarding Lowe’s Companies Inc’s stock price, have a median target of $129.00, with a high estimate of $145.00 and a low estimate of $105.00. The median estimate represents a 9.48% upside compared to the closing price of $117.83 on November 20th.
The same media also reported that at least 21 out of 32 surveyed investment analysts had rated Lowe’s Companies Inc’s stock as “Buy”, while 8 – as “Hold”.