Lowe's Shares Rally 2.59% Ahead of Earnings Report

Lowe's Companies (LOW) shares rose 0.09% today, marking the third consecutive day of gains, with a total increase of 2.59% over the past three days. The stock price reached its highest level since April 2025, despite an intraday decline.

The strategy of buying LOW shares after they reach a recent high and holding for one week resulted in poor performance over the past five years. The strategy's return was -0.65%, significantly underperforming the benchmark return of 44.90%. With a Sharpe ratio of 0 and a maximum drawdown of -52.38%, the strategy also indicated high risk, making it unfeasible for practical application.

Lowe's is set to release its first-quarter fiscal 2025 earnings report on May 21. Analysts have expressed caution due to the current macroeconomic uncertainties, which could impact the company's financial performance and investor sentiment.

An investment firm recently lowered its target price for Lowe's from $270 to $250, a 7.41% decrease. This adjustment may influence investor perceptions and potentially affect the stock's valuation.

Lowe's reported a notable decline in sales for April, with a year-over-year decrease of nearly 3%. This follows a 6.6% increase in sales for March, indicating a potential slowdown in consumer spending and market demand.

KeyBanc Capital Markets upgraded Lowe's stock rating from Sector Weight to Overweight and established a new price target of $266. The upgrade was based on the company's strategic initiatives aimed at enhancing its market position and driving growth.