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Lowe's (LOW) Outpaces Stock Market Gains: What You Should Know
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Lowe's (LOW - Free Report) closed the most recent trading day at $225.70, moving +1.29% from the previous trading session. This change outpaced the S&P 500's 1.23% gain on the day. Meanwhile, the Dow gained 0.84%, and the Nasdaq, a tech-heavy index, lost 2.24%.
Prior to today's trading, shares of the home improvement retailer had gained 9.27% over the past month. This has outpaced the Retail-Wholesale sector's gain of 4.7% and the S&P 500's gain of 4.67% in that time.
Investors will be hoping for strength from Lowe's as it approaches its next earnings release. The company is expected to report EPS of $4.46, down 4.5% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $25.08 billion, down 8.73% from the prior-year quarter.
For the full year, our Zacks Consensus Estimates are projecting earnings of $13.42 per share and revenue of $87.89 billion, which would represent changes of -3.38% and -9.44%, respectively, from the prior year.
Any recent changes to analyst estimates for Lowe's should also be noted by investors. Recent revisions tend to reflect the latest 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. 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. The Zacks Consensus EPS estimate has moved 0.04% higher within the past month. Lowe's is currently sporting a Zacks Rank of #3 (Hold).
Looking at its valuation, Lowe's is holding a Forward P/E ratio of 16.6. This represents a premium compared to its industry's average Forward P/E of 13.27.
We can also see that LOW currently has a PEG ratio of 1.35. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. The Building Products - Retail was holding an average PEG ratio of 1.99 at yesterday's closing price.
The Building Products - Retail industry is part of the Retail-Wholesale sector. This group has a Zacks Industry Rank of 18, putting it in the top 8% 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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
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Lowe's (LOW) Outpaces Stock Market Gains: What You Should Know
Lowe's (LOW - Free Report) closed the most recent trading day at $225.70, moving +1.29% from the previous trading session. This change outpaced the S&P 500's 1.23% gain on the day. Meanwhile, the Dow gained 0.84%, and the Nasdaq, a tech-heavy index, lost 2.24%.
Prior to today's trading, shares of the home improvement retailer had gained 9.27% over the past month. This has outpaced the Retail-Wholesale sector's gain of 4.7% and the S&P 500's gain of 4.67% in that time.
Investors will be hoping for strength from Lowe's as it approaches its next earnings release. The company is expected to report EPS of $4.46, down 4.5% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $25.08 billion, down 8.73% from the prior-year quarter.
For the full year, our Zacks Consensus Estimates are projecting earnings of $13.42 per share and revenue of $87.89 billion, which would represent changes of -3.38% and -9.44%, respectively, from the prior year.
Any recent changes to analyst estimates for Lowe's should also be noted by investors. Recent revisions tend to reflect the latest 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. 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. The Zacks Consensus EPS estimate has moved 0.04% higher within the past month. Lowe's is currently sporting a Zacks Rank of #3 (Hold).
Looking at its valuation, Lowe's is holding a Forward P/E ratio of 16.6. This represents a premium compared to its industry's average Forward P/E of 13.27.
We can also see that LOW currently has a PEG ratio of 1.35. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. The Building Products - Retail was holding an average PEG ratio of 1.99 at yesterday's closing price.
The Building Products - Retail industry is part of the Retail-Wholesale sector. This group has a Zacks Industry Rank of 18, putting it in the top 8% 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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.