Would You Still Hold Lowe’s Companies Stock If It Fell 30%?
Lowe’s Companies (LOW) stock is up 5.3% in 21 trading days. The rally reflects renewed optimism around its Q3 earnings beat and strong Pro segment sales, but big moves like this often invite a tougher question: is the stock truly resilient when markets reverse?
Before judging its downturn reslience, let’s look at where Lowe’s Companies stands today.
- Size: Lowe’s Companies is a $134 Bil company with $84 Bil in revenue currently trading at $240.44.
- Fundamentals: Last 12 month revenue growth of 0.6% and operating margin of 12.2%.
- Liquidity: Has Debt to Equity ratio of 0.33 and Cash to Assets ratio of 0.01
- Valuation: Lowe’s Companies stock is currently trading at P/E multiple of 19.8 and P/EBIT multiple of 12.9
- Has one instance since 2010 where it dipped >30% in < 30 days and subsequently returned 146% within a year. See LOW Dip Buy Analysis.
These metrics point to a Weak operational performance, alongside Moderate valuation – making the stock Unattractive. For details, see Buy or Sell LOW Stock
That brings us to the key consideration for investors chasing this rally: how resilient is LOW stock if markets turn south? This is where our downturn resilience framework comes in. Suppose LOW stock falls 20-30% to $168 – can investors comfortably hold on? Turns out, the stock saw an impact slightly worse than the S&P 500 index during various economic downturns, based on (a) how much the stock fell and, (b) how quickly it recovered. Below, we dive deeper into each such downturn.
- The Hidden Drivers You Missed in Lowe’s Q3 Results
- Lowe’s Companies Stock In Downward Spiral: -8.7% Loss After 9-Day Losing Streak
- Lowe’s Companies Stock Plummets -6.7% as Sell-Off Continues With 7-Day Streak
- LOW Delivers $76 Bil to Shareholders Over the Last 10 Years
- LOW Stock Up 6% after 6-Day Win Streak
- LOW Shares Rally 15% In A Month: How Does the Competition Measure Up?
2022 Inflation Shock
- LOW stock fell 34.3% from a high of $261.38 on 10 December 2021 to $171.61 on 16 June 2022 vs. a peak-to-trough decline of 25.4% for the S&P 500.
- However, the stock fully recovered to its pre-Crisis peak by 23 September 2024
- Since then, the stock increased to a high of $284.05 on 16 October 2024 , and currently trades at $240.44
| LOW | S&P 500 | |
|---|---|---|
| % Change from Pre-Recession Peak | -34.3% | -25.4% |
| Time to Full Recovery | 830 days | 464 days |
2020 Covid Pandemic
- LOW stock fell 48.6% from a high of $126.57 on 20 February 2020 to $65.02 on 18 March 2020 vs. a peak-to-trough decline of 33.9% for the S&P 500.
- However, the stock fully recovered to its pre-Crisis peak by 27 May 2020
| LOW | S&P 500 | |
|---|---|---|
| % Change from Pre-Recession Peak | -48.6% | -33.9% |
| Time to Full Recovery | 70 days | 148 days |
2018 Correction
- LOW stock fell 26.4% from a high of $116.84 on 21 September 2018 to $85.96 on 24 December 2018 vs. a peak-to-trough decline of 19.8% for the S&P 500.
- However, the stock fully recovered to its pre-Crisis peak by 15 April 2019
| LOW | S&P 500 | |
|---|---|---|
| % Change from Pre-Recession Peak | -26.4% | -19.8% |
| Time to Full Recovery | 112 days | 120 days |
2008 Global Financial Crisis
- LOW stock fell 61.7% from a high of $34.93 on 23 February 2007 to $13.39 on 6 March 2009 vs. a peak-to-trough decline of 56.8% for the S&P 500.
- However, the stock fully recovered to its pre-Crisis peak by 23 November 2012
| LOW | S&P 500 | |
|---|---|---|
| % Change from Pre-Recession Peak | -61.7% | -56.8% |
| Time to Full Recovery | 1,358 days | 1,480 days |
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