Lowe's Companies, Inc. (NYSE:LOW) saw significant share price movement during recent months on the NYSE, rising to highs of US$235 and falling to the lows of US$184. Some share price movements can give investors a better opportunity to enter into the stock, and potentially buy at a lower price. A question to answer is whether Lowe's Companies' current trading price of US$184 reflective of the actual value of the large-cap? Or is it currently undervalued, providing us with the opportunity to buy? Let's take a look at Lowe's Companies's outlook and value based on the most recent financial data to see if there are any catalysts for a price change.
Check out our latest analysis for Lowe's Companies
What Is Lowe's Companies Worth?
Good news, investors! Lowe's Companies is still a bargain right now. My valuation model shows that the intrinsic value for the stock is $299.75, but it is currently trading at US$184 on the share market, meaning that there is still an opportunity to buy now. What's more interesting is that, Lowe's Companies's share price is quite volatile, which gives us more chances to buy since the share price could sink lower (or rise higher) in the future. This is based on its high beta, which is a good indicator for how much the stock moves relative to the rest of the market.
What does the future of Lowe's Companies look like?
Investors looking for growth in their portfolio may want to consider the prospects of a company before buying its shares. Buying a great company with a robust outlook at a cheap price is always a good investment, so let's also take a look at the company's future expectations. Lowe's Companies' earnings over the next few years are expected to increase by 47%, indicating a highly optimistic future ahead. This should lead to more robust cash flows, feeding into a higher share value.
What This Means For You
Are you a shareholder? Since LOW is currently undervalued, it may be a great time to accumulate more of your holdings in the stock. With a positive outlook on the horizon, it seems like this growth has not yet been fully factored into the share price. However, there are also other factors such as financial health to consider, which could explain the current undervaluation.
Are you a potential investor? If you've been keeping an eye on LOW for a while, now might be the time to enter the stock. Its buoyant future outlook isn't fully reflected in the current share price yet, which means it's not too late to buy LOW. But before you make any investment decisions, consider other factors such as the strength of its balance sheet, in order to make a well-informed buy.
If you'd like to know more about Lowe's Companies as a business, it's important to be aware of any risks it's facing. Every company has risks, and we've spotted 3 warning signs for Lowe's Companies (of which 1 is a bit concerning!) you should know about.
If you are no longer interested in Lowe's Companies, you can use our free platform to see our list of over 50 other stocks with a high growth potential.
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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.