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Lowe's (LOW) Exceeds Market Returns: Some Facts to Consider
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In the latest trading session, Lowe's (LOW - Free Report) closed at $273.27, marking a +1.76% move from the previous day. The stock's performance was ahead of the S&P 500's daily gain of 0.97%. Elsewhere, the Dow gained 0.3%, while the tech-heavy Nasdaq added 1.45%.
The the stock of home improvement retailer has risen by 9.73% in the past month, leading the Retail-Wholesale sector's gain of 7.36% and the S&P 500's gain of 5.41%.
The investment community will be paying close attention to the earnings performance of Lowe's in its upcoming release. The company's earnings per share (EPS) are projected to be $2.80, reflecting an 8.5% decrease from the same quarter last year. In the meantime, our current consensus estimate forecasts the revenue to be $19.85 billion, indicating a 3.03% decline compared to the corresponding quarter of the prior year.
In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $11.91 per share and a revenue of $82.91 billion, indicating changes of -9.77% and -4.01%, respectively, from the former 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. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable 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 last 30 days, the Zacks Consensus EPS estimate has witnessed a 0.13% decrease. Right now, Lowe's possesses a Zacks Rank of #3 (Hold).
In the context of valuation, Lowe's is at present trading with a Forward P/E ratio of 22.54. For comparison, its industry has an average Forward P/E of 20.07, which means Lowe's is trading at a premium to the group.
We can also see that LOW currently has a PEG ratio of 2.21. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. The Building Products - Retail industry had an average PEG ratio of 3.33 as trading concluded yesterday.
The Building Products - Retail industry is part of the Retail-Wholesale sector. At present, this industry carries a Zacks Industry Rank of 212, placing it within the bottom 16% of over 250 industries.
The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within 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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Lowe's (LOW) Exceeds Market Returns: Some Facts to Consider
In the latest trading session, Lowe's (LOW - Free Report) closed at $273.27, marking a +1.76% move from the previous day. The stock's performance was ahead of the S&P 500's daily gain of 0.97%. Elsewhere, the Dow gained 0.3%, while the tech-heavy Nasdaq added 1.45%.
The the stock of home improvement retailer has risen by 9.73% in the past month, leading the Retail-Wholesale sector's gain of 7.36% and the S&P 500's gain of 5.41%.
The investment community will be paying close attention to the earnings performance of Lowe's in its upcoming release. The company's earnings per share (EPS) are projected to be $2.80, reflecting an 8.5% decrease from the same quarter last year. In the meantime, our current consensus estimate forecasts the revenue to be $19.85 billion, indicating a 3.03% decline compared to the corresponding quarter of the prior year.
In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $11.91 per share and a revenue of $82.91 billion, indicating changes of -9.77% and -4.01%, respectively, from the former 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. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable 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 last 30 days, the Zacks Consensus EPS estimate has witnessed a 0.13% decrease. Right now, Lowe's possesses a Zacks Rank of #3 (Hold).
In the context of valuation, Lowe's is at present trading with a Forward P/E ratio of 22.54. For comparison, its industry has an average Forward P/E of 20.07, which means Lowe's is trading at a premium to the group.
We can also see that LOW currently has a PEG ratio of 2.21. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. The Building Products - Retail industry had an average PEG ratio of 3.33 as trading concluded yesterday.
The Building Products - Retail industry is part of the Retail-Wholesale sector. At present, this industry carries a Zacks Industry Rank of 212, placing it within the bottom 16% of over 250 industries.
The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within 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.