Jefferies: Sales are Better for Lowe's


27% profit every 20 days?

This is what Nic Chahine averages with his option buys. Not selling covered calls or spreads… BUYING options. Most traders don’t even have a winning percentage of 27% buying options. He has an 83% win rate. Here’s how he does it.


According to a research report published today by Jefferies, Lowe's (NYSE: LOW) sales benefitted this week from nice weather, but the competition stores sales gap with Home Depot (NYSE: HD) was wide. “Comp store sales at LOW was 3.4% well below the 6.1% U.S. comp that Home Depot (HD, $46.98, HOLD) reported last week. We were modeling a 1% comp, but after seeing the weather upside in the HD number, our unofficial expectations increased for the LOW comp increased by a few points. The comp store sales gap with HD US business was 270 bps (consistent with recent quarters) and the 2-year average comp widened to 320 bps (it had been running 200 bps),” Jefferies said in the report.Jefferies maintains its Hold rating and $25 PT on Lowe's. Lowe's is currently trading at $27.72, while Home Depot is currently trading at $46.95.

27% profit every 20 days?

This is what Nic Chahine averages with his option buys. Not selling covered calls or spreads… BUYING options. Most traders don’t even have a winning percentage of 27% buying options. He has an 83% win rate. Here’s how he does it.


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Posted In: Analyst ColorReiterationAnalyst RatingsConsumer DiscretionaryHome Improvement RetailJefferies