Lowes Companies Price To Earning vs. Return On Asset
| LOWC34 Stock | BRL 76.75 0.35 0.45% |
For Lowes Companies profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Lowes Companies to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Lowes Companies utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Lowes Companies's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Lowes Companies over time as well as its relative position and ranking within its peers.
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Lowes Companies Return On Asset vs. Price To Earning Fundamental Analysis
Comparative valuation techniques use various fundamental indicators to help in determining Lowes Companies's current stock value. Our valuation model uses many indicators to compare Lowes Companies value to that of its competitors to determine the firm's financial worth. Lowes Companies is currently regarded as number one stock in price to earning category among its peers. It also is currently regarded as number one stock in return on asset category among its peers reporting about 0.01 of Return On Asset per Price To Earning. The ratio of Price To Earning to Return On Asset for Lowes Companies is roughly 176.92 . Comparative valuation analysis is a catch-all model that can be used if you cannot value Lowes Companies by discounting back its dividends or cash flows. This model doesn't attempt to find an intrinsic value for Lowes Companies' Stock. Still, instead, it compares the stock's price multiples to a benchmark or nearest competition to determine if the stock is relatively undervalued or overvalued.Lowes Return On Asset vs. Price To Earning
Price to Earnings ratio is typically used for current valuation of a company and is one of the most popular ratios that investors monitor daily. Holding a low PE stock is less risky because when a company's profitability falls, it is likely that earnings will also go down as well. In other words, if you start from a lower position, your downside risk is limited. There are also some investors who believe that low Price to Earnings ratio reflects the low pricing because a given company is in trouble. On the other hand, a higher PE ratio means that investors are paying more for each unit of profit.
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| = | 28.82 X |
Generally speaking, the Price to Earnings ratio gives investors an idea of what the market is willing to pay for the company's current earnings.
Return on Asset or ROA shows how effective is the management of the company in generating income from utilizing all of the assets at their disposal. It is a useful ratio to evaluate the performance of different departments of a company as well as to understand management performance over time.
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Return on Asset measures overall efficiency of a company in generating profits from its total assets. It is expressed as the percentage of profits earned per dollar of Asset. A low ROA typically means that a company is asset-intensive and therefore will needs more money to continue generating revenue in the future.
Lowes Return On Asset Comparison
Lowes Companies is currently under evaluation in return on asset category among its peers.
Lowes Companies Profitability Projections
The most important aspect of a successful company is its ability to generate a profit. For investors in Lowes Companies, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Lowes Companies will eventually generate negative long term returns. The profitability progress is the general direction of Lowes Companies' change in net profit over the period of time. It can combine multiple indicators of Lowes Companies, where stable trends show no significant progress. An accelerating trend is seen as positive, while a decreasing one is unfavorable. A rising trend means that profits are rising, and operational efficiency may be rising as well. A decreasing trend is a sign of poor performance and may indicate upcoming losses.
Lowes Companies, Inc., together with its subsidiaries, operates as a home improvement retailer in the United States and internationally. Lowes Companies, Inc. was founded in 1921 and is based in Mooresville, North Carolina. LOWES COMPA operates under Home Improvement Retail classification in Brazil and is traded on Sao Paolo Stock Exchange. It employs 300000 people.
Lowes Profitability Driver Comparison
Profitability drivers are factors that can directly affect your investment outlook on Lowes Companies. Investors often realize that things won't turn out the way they predict. There are maybe way too many unforeseen events and contingencies during the holding period of Lowes Companies position where the market behavior may be hard to predict, tax policy changes, gold or oil price hikes, calamities change, and many others. The question is, are you prepared for these unexpected events? Although some of these situations are obviously beyond your control, you can still follow the important profit indicators to know where you should focus on when things like this occur. Below are some of the Lowes Companies' important profitability drivers and their relationship over time.
Use Lowes Companies in pair-trading
One of the main advantages of trading using pair correlations is that every trade hedges away some risk. Because there are two separate transactions required, even if Lowes Companies position performs unexpectedly, the other equity can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Lowes Companies will appreciate offsetting losses from the drop in the long position's value.Lowes Companies Pair Trading
Lowes Companies Pair Trading Analysis
The ability to find closely correlated positions to Lowes Companies could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Lowes Companies when you sell it. If you don't do this, your portfolio allocation will be skewed against your target asset allocation. So, investors can't just sell and buy back Lowes Companies - that would be a violation of the tax code under the "wash sale" rule, and this is why you need to find a similar enough asset and use the proceeds from selling Lowes Companies to buy it.
The correlation of Lowes Companies is a statistical measure of how it moves in relation to other instruments. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A perfect positive correlation (i.e., a correlation coefficient of +1) implies that as Lowes Companies moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Lowes Companies moves in either direction, the perfectly negatively correlated security will move in the opposite direction. If the correlation is 0, the equities are not correlated; they are entirely random. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak.
Correlation analysis and pair trading evaluation for Lowes Companies can also be used as hedging techniques within a particular sector or industry or even over random equities to generate a better risk-adjusted return on your portfolios.Use Investing Themes to Complement your Lowes Companies position
In addition to having Lowes Companies in your portfolios, you can quickly add positions using our predefined set of ideas and optimize them against your very unique investing style. A single investing idea is a collection of funds, stocks, ETFs, or cryptocurrencies that are programmatically selected from a pull of investment themes. After you determine your investment opportunity, you can then find an optimal portfolio that will maximize potential returns on the chosen idea or minimize its exposure to market volatility.Did You Try This Idea?
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Fama and French investing themes focus on testing asset pricing under different economic assumptions. The Rubber and Plastic Products theme has 27 constituents at this time.
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Additional Information and Resources on Investing in Lowes Stock
When determining whether Lowes Companies is a strong investment it is important to analyze Lowes Companies' competitive position within its industry, examining market share, product or service uniqueness, and competitive advantages. Beyond financials and market position, potential investors should also consider broader economic conditions, industry trends, and any regulatory or geopolitical factors that may impact Lowes Companies' future performance. For an informed investment choice regarding Lowes Stock, refer to the following important reports:Check out Correlation Analysis. For information on how to trade Lowes Stock refer to our How to Trade Lowes Stock guide.You can also try the Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .
To fully project Lowes Companies' future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of Lowes Companies at a specified time, usually calculated after every quarter, six months, or one year. Three primary documents fall into the category of financial statements. These documents include Lowes Companies' income statement, its balance sheet, and the statement of cash flows.