We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Lowe's (LOW) Gains But Lags Market: What You Should Know
Read MoreHide Full Article
In the latest trading session, Lowe's (LOW - Free Report) closed at $202.26, marking a +1.1% move from the previous day. This move lagged the S&P 500's daily gain of 1.75%. Meanwhile, the Dow gained 1.05%, and the Nasdaq, a tech-heavy index, added 7.84%.
Coming into today, shares of the home improvement retailer had lost 5.88% in the past month. In that same time, the Retail-Wholesale sector lost 5.68%, while the S&P 500 lost 4.4%.
Lowe's will be looking to display strength as it nears its next earnings release. In that report, analysts expect Lowe's to post earnings of $2.25 per share. This would mark year-over-year growth of 26.4%. Meanwhile, our latest consensus estimate is calling for revenue of $22.77 billion, up 6.71% from the prior-year quarter.
LOW's full-year Zacks Consensus Estimates are calling for earnings of $13.75 per share and revenue of $97.36 billion. These results would represent year-over-year changes of +14.2% and +1.15%, respectively.
Any recent changes to analyst estimates for Lowe's should also be noted by investors. These revisions help to show the ever-changing nature of near-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. 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.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Within the past 30 days, our consensus EPS projection has moved 0.27% lower. Lowe's is holding a Zacks Rank of #3 (Hold) right now.
Looking at its valuation, Lowe's is holding a Forward P/E ratio of 14.55. For comparison, its industry has an average Forward P/E of 9.39, which means Lowe's is trading at a premium to the group.
We can also see that LOW currently has a PEG ratio of 1.1. 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 1.69 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 44, which puts it in the top 18% of all 250+ industries.
The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. 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.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Lowe's (LOW) Gains But Lags Market: What You Should Know
In the latest trading session, Lowe's (LOW - Free Report) closed at $202.26, marking a +1.1% move from the previous day. This move lagged the S&P 500's daily gain of 1.75%. Meanwhile, the Dow gained 1.05%, and the Nasdaq, a tech-heavy index, added 7.84%.
Coming into today, shares of the home improvement retailer had lost 5.88% in the past month. In that same time, the Retail-Wholesale sector lost 5.68%, while the S&P 500 lost 4.4%.
Lowe's will be looking to display strength as it nears its next earnings release. In that report, analysts expect Lowe's to post earnings of $2.25 per share. This would mark year-over-year growth of 26.4%. Meanwhile, our latest consensus estimate is calling for revenue of $22.77 billion, up 6.71% from the prior-year quarter.
LOW's full-year Zacks Consensus Estimates are calling for earnings of $13.75 per share and revenue of $97.36 billion. These results would represent year-over-year changes of +14.2% and +1.15%, respectively.
Any recent changes to analyst estimates for Lowe's should also be noted by investors. These revisions help to show the ever-changing nature of near-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. 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.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Within the past 30 days, our consensus EPS projection has moved 0.27% lower. Lowe's is holding a Zacks Rank of #3 (Hold) right now.
Looking at its valuation, Lowe's is holding a Forward P/E ratio of 14.55. For comparison, its industry has an average Forward P/E of 9.39, which means Lowe's is trading at a premium to the group.
We can also see that LOW currently has a PEG ratio of 1.1. 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 1.69 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 44, which puts it in the top 18% of all 250+ industries.
The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. 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.