Lowe's (LOW) Rises Higher Than Market: Key Facts
Lowe's (LOW) closed the latest trading day at $230.94, indicating a +0.47% change from the previous session's end. This change outpaced the S&P 500's 0.32% gain on the day. Meanwhile, the Dow experienced a rise of 0.38%, and the technology-dominated Nasdaq saw an increase of 0.35%.
Heading into today, shares of the home improvement retailer had lost 9.76% over the past month, lagging the Retail-Wholesale sector's loss of 1.39% and the S&P 500's loss of 2% in that time.
Investors will be eagerly watching for the performance of Lowe's in its upcoming earnings disclosure. The company's earnings per share (EPS) are projected to be $2.94, reflecting a 19.89% decrease from the same quarter last year. Alongside, our most recent consensus estimate is anticipating revenue of $21.07 billion, indicating a 5.7% downward movement from the same quarter last year.
For the full year, the Zacks Consensus Estimates project earnings of $12.21 per share and a revenue of $84.48 billion, demonstrating changes of -7.5% and -2.2%, respectively, from the preceding year.
Furthermore, it would be beneficial for investors to monitor any recent shifts in analyst projections for Lowe's. Such recent modifications usually signify the changing landscape 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. 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, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate remained stagnant. Lowe's currently has a Zacks Rank of #3 (Hold).
In terms of valuation, Lowe's is presently being traded at a Forward P/E ratio of 18.83. This indicates a premium in contrast to its industry's Forward P/E of 14.71.
We can additionally observe that LOW currently boasts a PEG ratio of 1.7. 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. By the end of yesterday's trading, the Building Products - Retail industry had an average PEG ratio of 1.97.
The Building Products - Retail industry is part of the Retail-Wholesale sector. This group has a Zacks Industry Rank of 194, putting it in the bottom 24% of all 250+ industries.
The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these 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 Companies, Inc. (LOW) : Free Stock Analysis Report
