Lowe’s sales outlook disappointed investors on Wednesday and raised concerns the pandemic-fueled boom in do-it-yourself and decorating projects is cooling.
The company’s shares dropped by as much as 4% in premarket trading. Then, the stock rose later Wednesday as new data from homebuilders showed a huge appetite for housing — even during a typically slow season and a period of inflation. That backdrop coupled with Lowe’s executive comments about the possibility for market share gains, help the stock bounce back.
Shares rose 2% to close at $257.54 on Wednesday. The company’s stock is up about 60% this year, bringing its market value to $173.52 billion.CNBC