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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 $182.15, marking a +1.3% move from the previous day. The stock lagged the S&P 500's daily gain of 1.36%. Meanwhile, the Dow gained 1.26%, and the Nasdaq, a tech-heavy index, lost 0.06%.
Prior to today's trading, shares of the home improvement retailer had lost 10.08% over the past month. This has lagged the Retail-Wholesale sector's loss of 5.54% and the S&P 500's gain of 1.2% 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 $3.10 per share. This would mark year-over-year growth of 13.55%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $23.1 billion, up 0.81% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $13.52 per share and revenue of $96.92 billion. These totals would mark changes of +12.29% and +0.69%, respectively, from last 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. 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. 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, 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. The Zacks Consensus EPS estimate has moved 0.01% lower within the past month. 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 13.3 right now. This valuation marks a premium compared to its industry's average Forward P/E of 9.18.
Investors should also note that LOW has a PEG ratio of 1.02 right now. 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 1.51 based on yesterday's closing prices.
The Building Products - Retail industry is part of the Retail-Wholesale sector. This group has a Zacks Industry Rank of 89, putting it in the top 36% 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 $182.15, marking a +1.3% move from the previous day. The stock lagged the S&P 500's daily gain of 1.36%. Meanwhile, the Dow gained 1.26%, and the Nasdaq, a tech-heavy index, lost 0.06%.
Prior to today's trading, shares of the home improvement retailer had lost 10.08% over the past month. This has lagged the Retail-Wholesale sector's loss of 5.54% and the S&P 500's gain of 1.2% 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 $3.10 per share. This would mark year-over-year growth of 13.55%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $23.1 billion, up 0.81% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $13.52 per share and revenue of $96.92 billion. These totals would mark changes of +12.29% and +0.69%, respectively, from last 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. 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. 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, 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. The Zacks Consensus EPS estimate has moved 0.01% lower within the past month. 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 13.3 right now. This valuation marks a premium compared to its industry's average Forward P/E of 9.18.
Investors should also note that LOW has a PEG ratio of 1.02 right now. 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 1.51 based on yesterday's closing prices.
The Building Products - Retail industry is part of the Retail-Wholesale sector. This group has a Zacks Industry Rank of 89, putting it in the top 36% 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.