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Lowe's (LOW) Flat As Market Gains: What You Should Know
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In the latest trading session, Lowe's (LOW - Free Report) closed at $211.04, marking no change from the previous day. This change lagged the S&P 500's daily gain of 0.09%. At the same time, the Dow added 0.2%, and the tech-heavy Nasdaq lost 4.87%.
Heading into today, shares of the home improvement retailer had gained 11.39% over the past month, outpacing the Retail-Wholesale sector's gain of 4.37% and the S&P 500's gain of 3.31% in that time.
Wall Street will be looking for positivity from Lowe's as it approaches its next earnings report date. This is expected to be May 23, 2023. On that day, Lowe's is projected to report earnings of $3.54 per share, which would represent year-over-year growth of 0.85%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $21.85 billion, down 7.63% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $13.82 per share and revenue of $88.84 billion, which would represent changes of -0.5% and -8.47%, respectively, from the prior year.
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. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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.
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 0.08% lower. 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 15.27. This valuation marks a premium compared to its industry's average Forward P/E of 13.43.
It is also worth noting that LOW currently has a PEG ratio of 1.21. 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 1.76 based on yesterday's closing prices.
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 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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
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Lowe's (LOW) Flat As Market Gains: What You Should Know
In the latest trading session, Lowe's (LOW - Free Report) closed at $211.04, marking no change from the previous day. This change lagged the S&P 500's daily gain of 0.09%. At the same time, the Dow added 0.2%, and the tech-heavy Nasdaq lost 4.87%.
Heading into today, shares of the home improvement retailer had gained 11.39% over the past month, outpacing the Retail-Wholesale sector's gain of 4.37% and the S&P 500's gain of 3.31% in that time.
Wall Street will be looking for positivity from Lowe's as it approaches its next earnings report date. This is expected to be May 23, 2023. On that day, Lowe's is projected to report earnings of $3.54 per share, which would represent year-over-year growth of 0.85%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $21.85 billion, down 7.63% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $13.82 per share and revenue of $88.84 billion, which would represent changes of -0.5% and -8.47%, respectively, from the prior year.
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. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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.
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 0.08% lower. 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 15.27. This valuation marks a premium compared to its industry's average Forward P/E of 13.43.
It is also worth noting that LOW currently has a PEG ratio of 1.21. 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 1.76 based on yesterday's closing prices.
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 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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.