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Lowe's (LOW) Dips More Than Broader Markets: What You Should Know
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In the latest trading session, Lowe's (LOW - Free Report) closed at $221.42, marking a -1.8% move from the previous day. This move lagged the S&P 500's daily loss of 0.79%. At the same time, the Dow lost 1.07%, and the tech-heavy Nasdaq lost 2.71%.
Heading into today, shares of the home improvement retailer had gained 6.76% over the past month, outpacing the Retail-Wholesale sector's gain of 4% and the S&P 500's gain of 4.16% in that time.
Investors will be hoping for strength from Lowe's as it approaches its next earnings release. In that report, analysts expect Lowe's to post earnings of $4.52 per share. This would mark a year-over-year decline of 3.21%. Meanwhile, our latest consensus estimate is calling for revenue of $25.08 billion, down 8.73% from the prior-year quarter.
LOW's full-year Zacks Consensus Estimates are calling for earnings of $13.38 per share and revenue of $87.89 billion. These results would represent year-over-year changes of -3.67% and -9.44%, respectively.
Investors should also note any recent changes to analyst estimates for Lowe's. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
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.
The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 0.21% lower. Lowe's is currently a Zacks Rank #3 (Hold).
Digging into valuation, Lowe's currently has a Forward P/E ratio of 16.85. For comparison, its industry has an average Forward P/E of 13.29, which means Lowe's is trading at a premium to the group.
Also, we should mention that LOW has a PEG ratio of 1.37. 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 2.01 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 21, putting it in the top 9% 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.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.
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Lowe's (LOW) Dips More Than Broader Markets: What You Should Know
In the latest trading session, Lowe's (LOW - Free Report) closed at $221.42, marking a -1.8% move from the previous day. This move lagged the S&P 500's daily loss of 0.79%. At the same time, the Dow lost 1.07%, and the tech-heavy Nasdaq lost 2.71%.
Heading into today, shares of the home improvement retailer had gained 6.76% over the past month, outpacing the Retail-Wholesale sector's gain of 4% and the S&P 500's gain of 4.16% in that time.
Investors will be hoping for strength from Lowe's as it approaches its next earnings release. In that report, analysts expect Lowe's to post earnings of $4.52 per share. This would mark a year-over-year decline of 3.21%. Meanwhile, our latest consensus estimate is calling for revenue of $25.08 billion, down 8.73% from the prior-year quarter.
LOW's full-year Zacks Consensus Estimates are calling for earnings of $13.38 per share and revenue of $87.89 billion. These results would represent year-over-year changes of -3.67% and -9.44%, respectively.
Investors should also note any recent changes to analyst estimates for Lowe's. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
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.
The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 0.21% lower. Lowe's is currently a Zacks Rank #3 (Hold).
Digging into valuation, Lowe's currently has a Forward P/E ratio of 16.85. For comparison, its industry has an average Forward P/E of 13.29, which means Lowe's is trading at a premium to the group.
Also, we should mention that LOW has a PEG ratio of 1.37. 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 2.01 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 21, putting it in the top 9% 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.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.