Is Lowe's stock at a low? Signs point to a better 2010

Lowe's (LOW) stock has meandered since my September 16, 2009 Buy rating at $21.60 per share, but I'm nevertheless reiterating my buy rating. Here's why:

Lowe's has now posted three straight quarters of earnings that were not as bad as expected. While that alone certainly isn't a reason to buy its shares, the stock looks better if you believe, as I do, that both home improvement revenue and more broadly, U.S. home sales (new and existing) have bottomed, providing an adequate tailwind for the stock. Further, any higher-than-expected store traffic in 2010 will be a bonus. The First Call FY2009/FY2010 EPS estimates for LOW are $1.22 to $1.35.