Lowe's options active into Q3 results and margin trend outlook Lowe's December 29 and 31 puts are active on total put volume of 16K contract (8K calls). December put option implied volatility is at 33, January and April is at 33; compared to its 26-week average of 27 according to Track Data. Active option volume suggests traders taking positions for larger price movement into the expected release of Q3 results on November 19.
Lowe's upgraded to Outperform at BMO Capital As previously reported, BMO Capital upgraded Lowe's (LOW) to Outperform and increased its price target to $81 from $73. The firm's State Economic Scoreboard research indicates stronger relative housing improvement and overall economic activity in Southeastern states, where Lowe's has a larger store footprint. The firm said sales to the Pro segment could accelerate and potentially narrow the gap in comp-store sales with Home Depot (HD) if growth broadens in the coming months. Additionally, strengthening Q2 housing metrics and robust relative traffic give the firm increased confidence in its 4% Q2 comp-store sales forecast for Lowe's.