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Lowe's (LOW) Stock Sinks As Market Gains: What You Should Know
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Lowe's (LOW - Free Report) closed the most recent trading day at $199.57, moving -0.01% from the previous trading session. This move lagged the S&P 500's daily gain of 0.21%. Elsewhere, the Dow gained 0.19%, while the tech-heavy Nasdaq added 0.01%.
Prior to today's trading, shares of the home improvement retailer had lost 9.1% over the past month. This has lagged the Retail-Wholesale sector's loss of 8.18% and the S&P 500's loss of 8.08% in that time.
Investors will be hoping for strength from Lowe's as it approaches its next earnings release. 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%. Meanwhile, our latest consensus estimate is calling for revenue of $23.83 billion, down 2.42% from the prior-year quarter.
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. 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.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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 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. The Zacks Consensus EPS estimate has moved 0.22% higher within the past month. Lowe's currently has a Zacks Rank of #3 (Hold).
Digging into valuation, Lowe's currently has a Forward P/E ratio of 14.89. For comparison, its industry has an average Forward P/E of 11.04, which means Lowe's is trading at a premium to the group.
Also, we should mention that LOW has a PEG ratio of 1.19. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. LOW's industry had an average PEG ratio of 1.92 as of yesterday's close.
The Building Products - Retail industry is part of the Retail-Wholesale sector. This industry currently has a Zacks Industry Rank of 24, which puts it in the top 10% 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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
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Lowe's (LOW) Stock Sinks As Market Gains: What You Should Know
Lowe's (LOW - Free Report) closed the most recent trading day at $199.57, moving -0.01% from the previous trading session. This move lagged the S&P 500's daily gain of 0.21%. Elsewhere, the Dow gained 0.19%, while the tech-heavy Nasdaq added 0.01%.
Prior to today's trading, shares of the home improvement retailer had lost 9.1% over the past month. This has lagged the Retail-Wholesale sector's loss of 8.18% and the S&P 500's loss of 8.08% in that time.
Investors will be hoping for strength from Lowe's as it approaches its next earnings release. 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%. Meanwhile, our latest consensus estimate is calling for revenue of $23.83 billion, down 2.42% from the prior-year quarter.
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. 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.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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 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. The Zacks Consensus EPS estimate has moved 0.22% higher within the past month. Lowe's currently has a Zacks Rank of #3 (Hold).
Digging into valuation, Lowe's currently has a Forward P/E ratio of 14.89. For comparison, its industry has an average Forward P/E of 11.04, which means Lowe's is trading at a premium to the group.
Also, we should mention that LOW has a PEG ratio of 1.19. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. LOW's industry had an average PEG ratio of 1.92 as of yesterday's close.
The Building Products - Retail industry is part of the Retail-Wholesale sector. This industry currently has a Zacks Industry Rank of 24, which puts it in the top 10% 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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.