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Lowe's (LOW) Dips More Than Broader Market: What You Should Know

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Lowe's (LOW - Free Report) closed at $193.84 in the latest trading session, marking a -0.39% move from the prior day. This change lagged the S&P 500's 0.08% loss on the day. On the other hand, the Dow registered a gain of 0.16%, and the technology-centric Nasdaq decreased by 0.22%.

The the stock of home improvement retailer has fallen by 0.59% in the past month, lagging the Retail-Wholesale sector's gain of 4.32% and the S&P 500's gain of 1.42%.

The investment community will be closely monitoring the performance of Lowe's in its forthcoming earnings report. The company is scheduled to release its earnings on November 21, 2023. The company's earnings per share (EPS) are projected to be $3.08, reflecting a 5.81% decrease from the same quarter last year. At the same time, our most recent consensus estimate is projecting a revenue of $21.04 billion, reflecting a 10.4% fall from the equivalent quarter last year.

LOW's full-year Zacks Consensus Estimates are calling for earnings of $13.35 per share and revenue of $87.6 billion. These results would represent year-over-year changes of -3.89% and -9.75%, respectively.

Investors should also pay attention to any latest changes in analyst estimates for Lowe's. Recent revisions tend to reflect the latest near-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the company's business and profitability.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational rating system.

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 last 30 days, the Zacks Consensus EPS estimate has moved 0.6% lower. Lowe's presently features a Zacks Rank of #4 (Sell).

In terms of valuation, Lowe's is presently being traded at a Forward P/E ratio of 14.57. This signifies a premium in comparison to the average Forward P/E of 10.4 for its industry.

We can also see that LOW currently has a PEG ratio of 1.28. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. The Building Products - Retail industry currently had an average PEG ratio of 1.72 as of yesterday's close.

The Building Products - Retail industry is part of the Retail-Wholesale sector. This industry, currently bearing a Zacks Industry Rank of 212, finds itself in the bottom 16% echelons of all 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.

Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming trading sessions.


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