Valuation analysis for Lowe's Companies, Inc. (NYSE:LOW)

Shares of Lowe's Companies, Inc. (NYSE:LOW) are approaching their longer term support levels and that suggests that LOW soon will be tradable.  Currently, the stock appears to have slightly more to decline before official tests of longer term support occur.  We would avoid shares of LOW until support is tested but then consider LOW based on s test of support.  The trading plans associated with out longer term technicals are relevant here and should also help investors manage risk.

Based on expected growth rates and associated multiples our valuation analysis for LOW is starting to look attractive.  Patience is the key here.

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Technical Summary

Term →

Near

Mid

Long

Bias

Strong

Weak

Neutral

P1

67.17

61.01

65.51

P2

68.48

66.16

72.76

P3

71.04

70.94

79.63

Long Term Trading Plans for LOW

February 24, 2016, 10:45 am ET

The technical Summary and associated Trading Plans for LOW listed below will help you make important timing decisions for your trades. This data is based on our proprietary analysis for LOW. In addition we offer Market Timing Models and Stock Filters in the links above which may increase the proficiency of the decisions you make.

LOW - (Long) Resistance Plan

Buy over 72.76, target 79.63, stop loss @ 72.5.
If 72.76 begins to break higher, the technical summary data will suggest a buy of LOW over 72.76, with an upside target of 79.63. The data also tells us to set a stop loss @ 72.5 in case the stock turns against the trade. 72.76 is the first level of resistance above 66.568, and by rule, any break above resistance is a buy signal. In this case, resistance 65.51 would be breaking higher, so a buy signal would exist.

LOW - (Short) Resistance Plan

Short under 72.76 target 65.51 stop loss @ 73.02.
The technical summary data is suggesting a short of LOW as it gets near 72.76 with a downside target of 65.51. We should have a stop loss in place at 73.02 though. 72.76 is the first level of resistance above 66.568, and by rule, any test of resistance is a short signal. In this case, if resistance 72.76 is being tested, so a short signal would exist.

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