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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 at $205.03 in the latest trading session, marking a -1.78% move from the prior day. This change lagged the S&P 500's daily loss of 1.48%. Meanwhile, the Dow lost 1.05%, and the Nasdaq, a tech-heavy index, lost 0.46%.
Heading into today, shares of the home improvement retailer had lost 5.51% over the past month, lagging the Retail-Wholesale sector's loss of 2.46% and the S&P 500's gain of 0.08% in that time.
Wall Street will be looking for positivity from Lowe's as it approaches its next earnings report date. On that day, Lowe's is projected to report earnings of $3.25 per share, which would represent year-over-year growth of 1.25%. Our most recent consensus estimate is calling for quarterly revenue of $23.83 billion, down 2.42% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $13.40 per share and revenue of $97.89 billion, which would represent changes of +11.3% and +1.7%, respectively, from the prior year.
It is also important to note the recent changes to analyst estimates for Lowe's. These recent revisions tend to reflect the evolving nature of short-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 0.22% higher. Lowe's is currently sporting a Zacks Rank of #3 (Hold).
Valuation is also important, so investors should note that Lowe's has a Forward P/E ratio of 15.58 right now. For comparison, its industry has an average Forward P/E of 11.86, which means Lowe's is trading at a premium to the group.
It is also worth noting that LOW currently has a PEG ratio of 1.25. 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. The Building Products - Retail industry currently had an average PEG ratio of 1.64 as of yesterday's close.
The Building Products - Retail industry is part of the Retail-Wholesale sector. This group has a Zacks Industry Rank of 19, putting it in the top 8% 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.
To follow LOW in the coming trading sessions, be sure to utilize Zacks.com.
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Lowe's (LOW) Dips More Than Broader Markets: What You Should Know
Lowe's (LOW - Free Report) closed at $205.03 in the latest trading session, marking a -1.78% move from the prior day. This change lagged the S&P 500's daily loss of 1.48%. Meanwhile, the Dow lost 1.05%, and the Nasdaq, a tech-heavy index, lost 0.46%.
Heading into today, shares of the home improvement retailer had lost 5.51% over the past month, lagging the Retail-Wholesale sector's loss of 2.46% and the S&P 500's gain of 0.08% in that time.
Wall Street will be looking for positivity from Lowe's as it approaches its next earnings report date. On that day, Lowe's is projected to report earnings of $3.25 per share, which would represent year-over-year growth of 1.25%. Our most recent consensus estimate is calling for quarterly revenue of $23.83 billion, down 2.42% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $13.40 per share and revenue of $97.89 billion, which would represent changes of +11.3% and +1.7%, respectively, from the prior year.
It is also important to note the recent changes to analyst estimates for Lowe's. These recent revisions tend to reflect the evolving nature of short-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 0.22% higher. Lowe's is currently sporting a Zacks Rank of #3 (Hold).
Valuation is also important, so investors should note that Lowe's has a Forward P/E ratio of 15.58 right now. For comparison, its industry has an average Forward P/E of 11.86, which means Lowe's is trading at a premium to the group.
It is also worth noting that LOW currently has a PEG ratio of 1.25. 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. The Building Products - Retail industry currently had an average PEG ratio of 1.64 as of yesterday's close.
The Building Products - Retail industry is part of the Retail-Wholesale sector. This group has a Zacks Industry Rank of 19, putting it in the top 8% 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.
To follow LOW in the coming trading sessions, be sure to utilize Zacks.com.