Lowe's: Solid Numbers But Red Flags Abound - Avoid
Lowe's generated substantial comp sales growth during Q4 due to warm weather over the holidays.
The purchase of RONA, subsequent exit of an Australian business, and reduced stock buybacks are all warning signs.
The recommendation remains to avoid the richly priced home improvement retailer benefiting abnormally strong comp sales growth.
Despite generally positive Q4 earnings, Lowe's (NYSE:LOW) traded mostly tepid for the next couple of days. Even with the ongoing positive results, the stock is struggling per my prior warning.
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