Home improvement retailer Lowe’s Companies Inc announced on Monday that it planned to close 31 underperforming stores in Canada and 20 stores in the United States in relation with restructuring efforts.
Shares of Lowe’s Companies Inc closed higher for the fifth time in the past fourteen trading sessions in New York on Monday. The stock edged up 0.26% ($0.25) to $97.07, after touching an intraday low at $95.69, or a price level not seen since November 1st ($94.60).
Shares of Lowe’s Companies Inc have risen 4.44% so far in 2018 compared with a 2.42% gain for the benchmark index, S&P 500 (SPX).
In 2017, Lowe’s stock went up 30.68%, thus, it again outperformed the S&P 500, which registered a 19.42% return.
“The store closures are a necessary step in our strategic reassessment as we focus on building a stronger business,” Marvin Ellison, Lowe’s Chief Executive Officer, was quoted as saying by Reuters.
Lowe’s said it would complete the latest round of closures by February 2019.
The company operates more than 2 000 stores in North America. In the US, closures will affect stores located in states such as California, New York and Texas, the retailer said. In Canada, it intends to close Rona outlets located in Ontario, British Columbia as well as in several other provinces.
Rona, the largest home improvement chain in Canada, was acquired by Lowe’s in 2016 in a deal valued at $2 billion.
According to CNN Money, the 31 analysts, offering 12-month forecasts regarding Lowe’s Companies Incs stock price, have a median target of $120.00, with a high estimate of $138.00 and a low estimate of $94.00. The median estimate represents a 23.62% upside compared to the closing price of $97.07 on November 5th.
The same media also reported that 22 out of 33 surveyed investment analysts had rated Lowe’s Companies Incs stock as “Buy”, while 7 – as “Hold”.
Weekly Pivot Levels
By using the traditional method of calculation, the weekly levels of importance for Lowe’s Companies Inc (LOW) are presented as follows:
Central Pivot Point – $95.85
R1 – $100.08
R2 – $103.35
R3 – $107.58
R4 – $111.82
S1 – $92.58
S2 – $88.35
S3 – $85.08
S4 – $81.82
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