Lowe’s Companies (LOW) Ready to Breakout?

A resistance level has emerged in the chart of Lowe’s Cos. (LOW).  If the resistance level is broken, a breakout could occur…

Lowe’s Cos. (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 the demand in the home improvement market due to people spending so much time at home. LOW is also seeing strength from its new total home strategy. The strategy entails providing a complete set of products and solutions for various types of home repair and improvement.

LOW has plenty of cash on hand finishing the last quarter with $10.1 billion. This compares favorably with its short-term debt of only $609 million. The company has also shown efficiency with a high return on equity of 131.3%.

The demand for home improvement has resulted in earnings growth of 29.3% over the past year. Revenue is up 18.2% over the past year as well. Even with all that growth, the stock is trading at a reasonable multiple with a trailing P/E of 22.14.

LOW is up 9% year to date and has shown bullish strength over the near term, resulting in a Momentum Grade of A in our POWR Ratings system. This is reflected in the chart below.

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

See chart and continue reading at STOCKNEWS.com