By Peet Serfontein, Khumbulani Kunene
We enter a long position with a target price of $228 and a stop-loss of $187.
Lowe's Companies is a United States (US) home improvement retailer serving homeowners, do-it-yourself (DIY) customers and professional (Pro) contractors. The company sells products for home repair, maintenance, remodelling and construction and supports customers through online and in-store services, installation and project advice.
Lowe's operates nearly 1 750 stores across the US and provides a wide range of products for construction, maintenance, repair, and decorating. Overall, the business is closely linked to housing activity, household spending and demand for home improvement projects.
Technically, the price at the lower range of the Detrended Price Oscillator (DPO) makes the stock an interesting candidate for a long position (see larger insert on the main chart). The DPO, which highlights cyclical price movements, has since moved higher following a fall towards the lower statistical band, which may indicate that downside pressure is easing and that a mean-reversion rebound is possible.
A series of green Heikin-Ashi candles also supports a bullish case for the stock (see smaller insert on the main chart) as it suggests that the average weekly price is rising. The current price at ~$198.53 is also above the marked bullish flip level of $188.12, which adds support to the short-term bullish view.
Share performance
Share information
| Share Code | LOW US |
| Industry | Consumer Discretionary |
| Market Capital (USD) | 111.4 billion |
| One-Year Total Return | -16.88% |
| Return Year-to-Date | -15.88% |
| Current Price (USD) | 198.53 |
| 52-Week High (USD) | 293.06 |
| 52-Week Low (USD) | 178.45 |
| Financial Year End | January |
| The price remains below its 200-day and 200-week simple moving average (SMA) which acts as an important resistance level. A decisive break above the 200-day SMA would indicate a strong confirmation supporting the bullish stance. | |
Consensus expectations (Bloomberg)
| FY26 | FY27E | FY28E | FY29E | |
|---|---|---|---|---|
| Headline Earnings per Share (USD) | 12.28 | 12.26 | 12.34 | 14.12 |
| Growth (%) | -0.13 | 0.65 | 14.40 | |
| Dividend Per Share (USD) | 4.75 | 4.95 | 5.21 | 5.51 |
| Growth (%) | 4.17 | 5.19 | 5.86 | |
| Forward PE (times) | 16.11 | 14.56 | 14.06 | |
| Forward Dividend Yield (%) | 2.49 | 2.62 | 2.78 | |
| The company is well positioned to deliver stable earnings and dividend growth over the medium term, supported by an improving housing market. Growth should also be underpinned by the continued expansion of its loyalty ecosystem, MyLowe's Rewards, and its growing retail media platform, which extends its reach to consumers across channels such as Roku, DoorDash, Reddit, TikTok and YouTube. | ||||
Buy/sell rationale
Technical analysis:
Fundamental view:
Update on previous trade ideas
| Share name and position | Entry | Current Price | Movement | Comment | Time to exit |
|---|---|---|---|---|---|
| GILD - Close position (Take Profit) | 135.77 | 157.37 | +15.9% | The stock reached our profit target, so we closed the position. | 18 November 2026 |
| VST - Buy (Continue to hold) | 139.03 | 150.32 | +8.1% | The price at the lower range of an inclining channel pattern remains of interest. Dipped below its 200-day SMA. Weak upside momentum is supportive. Our profit target is maintained at $176.00 with a trailing stop-loss at $142.00. | 18 November 2026 |
| COST - Buy (Continue to hold) | 924.59 | 994.61 | +7.6% | The weekly DPO remains in deeply negative territory, which is of interest. Upside price momentum is supportive. Our profit target is maintained at $1 040.00 with a trailing stop-loss at ~$974.00. | 17 December 2026 |
| TXN - Buy (Continue to hold) | 263.42 | 277.78 | +5.5% | The rebound from the 38.2% Fibonacci retracement remains of interest. Remains above the 200-day SMA. Fading downside momentum is supportive. Our profit target is maintained at $322.00 with a trailing stop-loss at $275.00. | 17 November 2026. |
| ISRG - Buy (Continue to hold) | 422.06 | 438.00 | +3.8% | The price at the lower range of an upsloping linear regression remains of interest. Testing its 200-day SMA. Strong upside momentum is supportive. Our profit target is maintained at $506.00, with a trailing stop-loss at $407.00. | 30 December 2026 |
| UI - Buy (Continue to hold) | 626.48 | 605.04 | -3.4% | A developing falling-wedge pattern remains of interest. Remains just below its 200-day SMA. Fading upside price momentum is a concern. Our profit target is maintained at $780.00, with a trailing stop-loss at $935.00. | 17 December 2026 |
This trade idea can be actioned through FNB Global Trader by visiting shares.fnb.co.za.
