Is a Breakout for Lowe’s in the Charts?

An ascending triangle pattern has formed in the chart of Lowe’s Inc. (LOW).  This is a bullish pattern and if the resistance level is broken, a breakout is expected…

Lowe’s Inc. (LOW) is the second- largest home improvement retailer in the world, operating about 1,970 stores throughout the United States and Canada. The firm’s stores offer products and services for home decorating, maintenance, repair, and remodeling.

The company has benefited from an increased interest in home improvement projects as the pandemic led to more people staying at home. LOW took action to increase its omni-channel capabilities to allow for both professional and do-it-yourself customers to buy online and pick up at stores.

LOW had $10.1 billion in cash as of the end of its last reported quarter, compared to only $609 million in short-term debt. This has led to a Quality Grade of B in our POWR Ratings system. The company is also highly profitable with an ROIC of 21%.

In terms of growth, LOW’s earnings rose 29.3% last year and at an average of 21.1% over the past five years. Earnings are expected to rise 28.2% this quarter and 51.8% this year. The company has a Growth Grade of B.

LOW has P/E of 24.9 and a Price to Sales Ratio of 1.6, both under the industry average. The stock has shown bullish momentum over the long-term and over the past few months. This has resulted in a Momentum Grade of A.

Take a look at the 1-year chart of LOW below with the added notations…

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