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Lowe's (LOW) Surpasses Market Returns: Some Facts Worth Knowing

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The latest trading session saw Lowe's (LOW - Free Report) ending at $237.64, denoting a +0.61% adjustment from its last day's close. This move outpaced the S&P 500's daily gain of 0.38%. Meanwhile, the Dow gained 0.61%, and the Nasdaq, a tech-heavy index, added 0.03%.

Coming into today, shares of the home improvement retailer had lost 1.98% in the past month. In that same time, the Retail-Wholesale sector lost 4.88%, while the S&P 500 lost 3.2%.

The upcoming earnings release of Lowe's will be of great interest to investors. The company's earnings report is expected on August 20, 2024. The company is predicted to post an EPS of $3.96, indicating a 13.16% decline compared to the equivalent quarter last year. Our most recent consensus estimate is calling for quarterly revenue of $23.92 billion, down 4.15% from the year-ago period.

For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $12.15 per share and a revenue of $84.25 billion, representing changes of -7.95% and -2.46%, respectively, from the prior year.

Investors should also note any recent changes to analyst estimates for Lowe's. These latest adjustments often mirror the shifting dynamics of short-term business patterns. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.

The Zacks Rank system, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. Over the past month, there's been a 0.65% fall in the Zacks Consensus EPS estimate. Lowe's is currently a Zacks Rank #4 (Sell).

With respect to valuation, Lowe's is currently being traded at a Forward P/E ratio of 19.44. Its industry sports an average Forward P/E of 17.02, so one might conclude that Lowe's is trading at a premium comparatively.

It is also worth noting that LOW currently has a PEG ratio of 1.82. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. Building Products - Retail stocks are, on average, holding a PEG ratio of 3.03 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 72, which puts it in the top 29% of all 250+ industries.

The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in the upcoming trading sessions.


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