Analysts are optimistic about Lowe’s stock, but should you invest now?
New York: When it comes to buying or selling stocks, many folks look to analysts for guidance. But do their recommendations really matter? Let’s dive into what Wall Street thinks about Lowe’s (LOW).
Lowe’s has an average brokerage recommendation of 1.78, which is pretty close to a Strong Buy. This score comes from 34 brokerage firms, with 20 saying Strong Buy and just one saying Buy. So, it seems like a lot of analysts are feeling good about Lowe’s.
But hold on! Just because the numbers look good doesn’t mean you should jump in without thinking. Studies show that these recommendations don’t always help investors pick the best stocks. Sometimes, analysts are a bit too optimistic because they have their own interests at heart.
For every “Strong Sell,” there are about five “Strong Buy” ratings. This can make it tricky for regular investors to know what to do. It’s smart to use these recommendations to back up your own research instead of relying on them completely.
One tool that can help is the Zacks Rank, which rates stocks from 1 (Strong Buy) to 5 (Strong Sell). It’s based on earnings estimate revisions, which tend to be more reliable for predicting stock performance. So, checking the Zacks Rank alongside the average brokerage recommendation can give you a clearer picture.
Right now, Lowe’s has a Zacks Rank of #3 (Hold), meaning it’s not a bad idea to be cautious. The earnings estimate for this year is steady at $11.88, which suggests the stock might just follow the market trends.
With all this in mind, it might be wise to think twice before jumping on the Buy bandwagon for Lowe’s. Keep an eye on the market and do your homework!
