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Lowe's (LOW) Dips More Than Broader Markets: What You Should Know
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Lowe's (LOW - Free Report) closed the most recent trading day at $256.39, moving -0.46% from the previous trading session. This change lagged the S&P 500's daily loss of 0.3%. Elsewhere, the Dow lost 0.25%, while the tech-heavy Nasdaq added 0.33%.
Coming into today, shares of the home improvement retailer had gained 4.98% in the past month. In that same time, the Retail-Wholesale sector lost 2.8%, while the S&P 500 gained 3.11%.
Investors will be hoping for strength from Lowe's as it approaches its next earnings release. The company is expected to report EPS of $1.70, up 27.82% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $20.87 billion, up 2.73% from the year-ago period.
LOW's full-year Zacks Consensus Estimates are calling for earnings of $11.94 per share and revenue of $95.72 billion. These results would represent year-over-year changes of +34.76% and +6.84%, respectively.
It is also important to note the recent changes to analyst estimates for Lowe's. Recent revisions tend to reflect the latest near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 0.77% higher. Lowe's is currently a Zacks Rank #1 (Strong Buy).
Investors should also note Lowe's's current valuation metrics, including its Forward P/E ratio of 21.57. Its industry sports an average Forward P/E of 16.16, so we one might conclude that Lowe's is trading at a premium comparatively.
Meanwhile, LOW's PEG ratio is currently 1.58. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. Building Products - Retail stocks are, on average, holding a PEG ratio of 1.88 based on yesterday's closing prices.
The Building Products - Retail industry is part of the Retail-Wholesale sector. This industry currently has a Zacks Industry Rank of 4, which puts it in the top 2% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
You can find more information on all of these metrics, and much more, on Zacks.com.
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Lowe's (LOW) Dips More Than Broader Markets: What You Should Know
Lowe's (LOW - Free Report) closed the most recent trading day at $256.39, moving -0.46% from the previous trading session. This change lagged the S&P 500's daily loss of 0.3%. Elsewhere, the Dow lost 0.25%, while the tech-heavy Nasdaq added 0.33%.
Coming into today, shares of the home improvement retailer had gained 4.98% in the past month. In that same time, the Retail-Wholesale sector lost 2.8%, while the S&P 500 gained 3.11%.
Investors will be hoping for strength from Lowe's as it approaches its next earnings release. The company is expected to report EPS of $1.70, up 27.82% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $20.87 billion, up 2.73% from the year-ago period.
LOW's full-year Zacks Consensus Estimates are calling for earnings of $11.94 per share and revenue of $95.72 billion. These results would represent year-over-year changes of +34.76% and +6.84%, respectively.
It is also important to note the recent changes to analyst estimates for Lowe's. Recent revisions tend to reflect the latest near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 0.77% higher. Lowe's is currently a Zacks Rank #1 (Strong Buy).
Investors should also note Lowe's's current valuation metrics, including its Forward P/E ratio of 21.57. Its industry sports an average Forward P/E of 16.16, so we one might conclude that Lowe's is trading at a premium comparatively.
Meanwhile, LOW's PEG ratio is currently 1.58. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. Building Products - Retail stocks are, on average, holding a PEG ratio of 1.88 based on yesterday's closing prices.
The Building Products - Retail industry is part of the Retail-Wholesale sector. This industry currently has a Zacks Industry Rank of 4, which puts it in the top 2% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
You can find more information on all of these metrics, and much more, on Zacks.com.