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Lowe's (LOW) Outpaces Stock Market Gains: What You Should Know

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The most recent trading session ended with Lowe's (LOW - Free Report) standing at $240.65, reflecting a +1.53% shift from the previouse trading day's closing. The stock outpaced the S&P 500's daily gain of 1.04%. Meanwhile, the Dow gained 0.76%, and the Nasdaq, a tech-heavy index, added 1.03%.

Heading into today, shares of the home improvement retailer had gained 9.15% over the past month, outpacing the Retail-Wholesale sector's loss of 8.36% and the S&P 500's loss of 6.74% in that time.

The investment community will be paying close attention to the earnings performance of Lowe's in its upcoming release. The company is slated to reveal its earnings on August 20, 2024. The company's earnings per share (EPS) are projected to be $3.98, reflecting a 12.72% decrease from the same quarter last year. Simultaneously, our latest consensus estimate expects the revenue to be $24.02 billion, showing a 3.76% drop compared to the year-ago quarter.

Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $12.23 per share and revenue of $84.59 billion, indicating changes of -7.35% and -2.07%, respectively, compared to the previous year.

Any recent changes to analyst estimates for Lowe's should also be noted by investors. These latest adjustments often mirror the shifting dynamics of short-term business patterns. Therefore, positive revisions in estimates convey analysts' confidence in the company's business performance and profit potential.

Our research shows that these estimate changes are directly correlated with near-term stock prices. 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. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed an unchanged state. Currently, Lowe's is carrying a Zacks Rank of #3 (Hold).

From a valuation perspective, Lowe's is currently exchanging hands at a Forward P/E ratio of 19.38. This signifies a premium in comparison to the average Forward P/E of 16.08 for its industry.

One should further note that LOW currently holds a PEG ratio of 1.82. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. The Building Products - Retail industry currently had an average PEG ratio of 2.62 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 85, which puts it in the top 34% of all 250+ industries.

The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in 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 use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming trading sessions.


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