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Lowe's (LOW) Gains As Market Dips: What You Should Know
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Lowe's (LOW - Free Report) closed at $196.07 in the latest trading session, marking a +1.97% move from the prior day. This change outpaced the S&P 500's 3.2% loss on the day. Meanwhile, the Dow lost 1.99%, and the Nasdaq, a tech-heavy index, lost 0.47%.
Prior to today's trading, shares of the home improvement retailer had lost 6.95% over the past month. This has was narrower than the Retail-Wholesale sector's loss of 13.6% and the S&P 500's loss of 7.87% in that time.
Wall Street will be looking for positivity from Lowe's as it approaches its next earnings report date. In that report, analysts expect Lowe's to post earnings of $3.24 per share. This would mark year-over-year growth of 0.93%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $23.78 billion, down 2.62% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $13.39 per share and revenue of $97.87 billion, which would represent changes of +11.21% and +1.68%, respectively, from the prior year.
Investors might also notice recent changes to analyst estimates for Lowe's. 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. The Zacks Consensus EPS estimate has moved 0.4% lower within the past month. Lowe's currently has a Zacks Rank of #3 (Hold).
In terms of valuation, Lowe's is currently trading at a Forward P/E ratio of 14.36. For comparison, its industry has an average Forward P/E of 11.85, which means Lowe's is trading at a premium to the group.
We can also see that LOW currently has a PEG ratio of 1.15. 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. LOW's industry had an average PEG ratio of 1.89 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 59, putting it in the top 24% 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.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.
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Lowe's (LOW) Gains As Market Dips: What You Should Know
Lowe's (LOW - Free Report) closed at $196.07 in the latest trading session, marking a +1.97% move from the prior day. This change outpaced the S&P 500's 3.2% loss on the day. Meanwhile, the Dow lost 1.99%, and the Nasdaq, a tech-heavy index, lost 0.47%.
Prior to today's trading, shares of the home improvement retailer had lost 6.95% over the past month. This has was narrower than the Retail-Wholesale sector's loss of 13.6% and the S&P 500's loss of 7.87% in that time.
Wall Street will be looking for positivity from Lowe's as it approaches its next earnings report date. In that report, analysts expect Lowe's to post earnings of $3.24 per share. This would mark year-over-year growth of 0.93%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $23.78 billion, down 2.62% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $13.39 per share and revenue of $97.87 billion, which would represent changes of +11.21% and +1.68%, respectively, from the prior year.
Investors might also notice recent changes to analyst estimates for Lowe's. 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. The Zacks Consensus EPS estimate has moved 0.4% lower within the past month. Lowe's currently has a Zacks Rank of #3 (Hold).
In terms of valuation, Lowe's is currently trading at a Forward P/E ratio of 14.36. For comparison, its industry has an average Forward P/E of 11.85, which means Lowe's is trading at a premium to the group.
We can also see that LOW currently has a PEG ratio of 1.15. 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. LOW's industry had an average PEG ratio of 1.89 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 59, putting it in the top 24% 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.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.