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Lowe's (LOW) Gains But Lags Market: What You Should Know
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In the latest trading session, Lowe's (LOW - Free Report) closed at $202.40, marking a +0.1% move from the previous day. This move lagged the S&P 500's daily gain of 0.34%. Meanwhile, the Dow gained 0.4%, and the Nasdaq, a tech-heavy index, lost 0.47%.
Coming into today, shares of the home improvement retailer had lost 10.65% in the past month. In that same time, the Retail-Wholesale sector gained 1.91%, while the S&P 500 gained 3.75%.
Wall Street will be looking for positivity from Lowe's as it approaches its next earnings report date. The company is expected to report EPS of $3.25, up 1.25% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $23.83 billion, down 2.42% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $13.44 per share and revenue of $98.07 billion. These totals would mark changes of +11.63% and +1.89%, respectively, from last year.
Any recent changes to analyst estimates for Lowe's should also be noted by investors. These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.
The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 0.92% higher. Lowe's is currently a Zacks Rank #2 (Buy).
Digging into valuation, Lowe's currently has a Forward P/E ratio of 15.04. Its industry sports an average Forward P/E of 11.91, so we one might conclude that Lowe's is trading at a premium comparatively.
Also, we should mention that LOW has a PEG ratio of 1.2. 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 1.56 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 17, which puts it in the top 7% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual 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) Gains But Lags Market: What You Should Know
In the latest trading session, Lowe's (LOW - Free Report) closed at $202.40, marking a +0.1% move from the previous day. This move lagged the S&P 500's daily gain of 0.34%. Meanwhile, the Dow gained 0.4%, and the Nasdaq, a tech-heavy index, lost 0.47%.
Coming into today, shares of the home improvement retailer had lost 10.65% in the past month. In that same time, the Retail-Wholesale sector gained 1.91%, while the S&P 500 gained 3.75%.
Wall Street will be looking for positivity from Lowe's as it approaches its next earnings report date. The company is expected to report EPS of $3.25, up 1.25% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $23.83 billion, down 2.42% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $13.44 per share and revenue of $98.07 billion. These totals would mark changes of +11.63% and +1.89%, respectively, from last year.
Any recent changes to analyst estimates for Lowe's should also be noted by investors. These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.
The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 0.92% higher. Lowe's is currently a Zacks Rank #2 (Buy).
Digging into valuation, Lowe's currently has a Forward P/E ratio of 15.04. Its industry sports an average Forward P/E of 11.91, so we one might conclude that Lowe's is trading at a premium comparatively.
Also, we should mention that LOW has a PEG ratio of 1.2. 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 1.56 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 17, which puts it in the top 7% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual 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.