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Here's Why Lowe's (LOW) Fell More Than Broader Market
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Lowe's (LOW - Free Report) closed at $232.98 in the latest trading session, marking a -0.87% move from the prior day. The stock's change was less than the S&P 500's daily loss of 0.02%. Elsewhere, the Dow saw a downswing of 0.21%, while the tech-heavy Nasdaq appreciated by 0.29%.
Shares of the home improvement retailer have appreciated by 1.28% over the course of the past month, underperforming the Retail-Wholesale sector's gain of 1.42% and the S&P 500's gain of 1.29%.
The investment community will be closely monitoring the performance of Lowe's in its forthcoming earnings report. The company's upcoming EPS is projected at $2.94, signifying a 19.89% drop compared to the same quarter of the previous year. Meanwhile, our latest consensus estimate is calling for revenue of $21.07 billion, down 5.7% from the prior-year quarter.
In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $12.21 per share and a revenue of $84.48 billion, indicating changes of -7.5% and -2.2%, respectively, from the former year.
It is also important to note the recent changes to analyst estimates for Lowe's. Recent revisions tend to reflect the latest 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 suggests that these changes in estimates have a direct relationship with upcoming stock price performance. 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. Within the past 30 days, our consensus EPS projection remained stagnant. As of now, Lowe's holds a Zacks Rank of #4 (Sell).
Investors should also note Lowe's's current valuation metrics, including its Forward P/E ratio of 19.25. This denotes a premium relative to the industry's average Forward P/E of 14.95.
One should further note that LOW currently holds a PEG ratio of 1.74. 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 2.03 based on yesterday's closing prices.
The Building Products - Retail industry is part of the Retail-Wholesale sector. Currently, this industry holds a Zacks Industry Rank of 210, positioning it in the bottom 17% 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.
Ensure to harness Zacks.com to stay updated with all these stock-shifting metrics, among others, in the next trading sessions.
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Here's Why Lowe's (LOW) Fell More Than Broader Market
Lowe's (LOW - Free Report) closed at $232.98 in the latest trading session, marking a -0.87% move from the prior day. The stock's change was less than the S&P 500's daily loss of 0.02%. Elsewhere, the Dow saw a downswing of 0.21%, while the tech-heavy Nasdaq appreciated by 0.29%.
Shares of the home improvement retailer have appreciated by 1.28% over the course of the past month, underperforming the Retail-Wholesale sector's gain of 1.42% and the S&P 500's gain of 1.29%.
The investment community will be closely monitoring the performance of Lowe's in its forthcoming earnings report. The company's upcoming EPS is projected at $2.94, signifying a 19.89% drop compared to the same quarter of the previous year. Meanwhile, our latest consensus estimate is calling for revenue of $21.07 billion, down 5.7% from the prior-year quarter.
In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $12.21 per share and a revenue of $84.48 billion, indicating changes of -7.5% and -2.2%, respectively, from the former year.
It is also important to note the recent changes to analyst estimates for Lowe's. Recent revisions tend to reflect the latest 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 suggests that these changes in estimates have a direct relationship with upcoming stock price performance. 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. Within the past 30 days, our consensus EPS projection remained stagnant. As of now, Lowe's holds a Zacks Rank of #4 (Sell).
Investors should also note Lowe's's current valuation metrics, including its Forward P/E ratio of 19.25. This denotes a premium relative to the industry's average Forward P/E of 14.95.
One should further note that LOW currently holds a PEG ratio of 1.74. 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 2.03 based on yesterday's closing prices.
The Building Products - Retail industry is part of the Retail-Wholesale sector. Currently, this industry holds a Zacks Industry Rank of 210, positioning it in the bottom 17% 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.
Ensure to harness Zacks.com to stay updated with all these stock-shifting metrics, among others, in the next trading sessions.