We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Lowe's (LOW) Poised for Growth: Time to Buy the Stock?
Read MoreHide Full Article
Shares of leading home improvement retailer, Lowe's Companies, Inc. (LOW - Free Report) , have gained nearly 11% over the past three months. The company, which operates primarily in the U.S., Canada and Mexico, might be a good addition to the portfolio of yield-seeking investors. The company’s growth prospects make us optimistic about the stock. Keep reading to find out what makes the stock an attractive pick.
Lowe’s began fiscal 2016 on a strong note as is evident from the positive earnings surprise in the first quarter. Also, both earnings and sales improved year over year. Fiscal first-quarter earnings increased 24.3% year over year to 87 cents per share and surpassed the Zacks Consensus Estimate of 85 cents. On the other hand, total revenue rose 7.8% year over year to $15,234 million in the quarter. The company’s sales gained from its efforts to provide a better omni-channel customer experience, with impressive performance by both indoor and outdoor categories.
The company not only delivered better-than-expected fiscal first-quarter results but also provided a robust outlook for fiscal 2016. Lowe’s expects sales growth (including the 53rd week) of nearly 6%, with the 53rd week expected to boost sales by 1.5% in the fiscal year. Comps, on a consolidated basis, are estimated to grow roughly 4% this year. Operating margin is expected to expand nearly 80–90 basis points. Further, Lowe’s now expects earnings for fiscal 2016, excluding the impact of RONA acquisition, to be $4.11 per share.
Following Lowe’s sturdy performance, the Zacks Consensus Estimate was revised higher as analysts raised their estimates. Analysts polled by Zacks are convinced that this Zacks Rank #2 (Buy) stock will see an upbeat performance in the future. Over the past 30 days, the Zacks Consensus Estimate for fiscal 2016 and 2017 has moved up by 4 cents and 3 cents to $4.03 and $4.68, respectively.
Recently, Lowe’s has completed the acquisition of leading Canadian retailer and supplier of hardware, building materials as well as home renovation products – RONA – for $2.4 billion.
Other Stocks to Consider
Other favorably placed stocks in the retail sector that warrant a look include Delta Apparel Inc. (DLA - Free Report) , Oxford Industries Inc. (OXM - Free Report) and Perry Ellis International Inc. . Both Delta Apparel and Oxford Industries sport a Zacks Rank #1 (Strong Buy), while Perry Ellis International holds a Zacks Rank #2 (Buy).
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report >>
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Lowe's (LOW) Poised for Growth: Time to Buy the Stock?
Shares of leading home improvement retailer, Lowe's Companies, Inc. (LOW - Free Report) , have gained nearly 11% over the past three months. The company, which operates primarily in the U.S., Canada and Mexico, might be a good addition to the portfolio of yield-seeking investors. The company’s growth prospects make us optimistic about the stock. Keep reading to find out what makes the stock an attractive pick.
Lowe’s began fiscal 2016 on a strong note as is evident from the positive earnings surprise in the first quarter. Also, both earnings and sales improved year over year. Fiscal first-quarter earnings increased 24.3% year over year to 87 cents per share and surpassed the Zacks Consensus Estimate of 85 cents. On the other hand, total revenue rose 7.8% year over year to $15,234 million in the quarter. The company’s sales gained from its efforts to provide a better omni-channel customer experience, with impressive performance by both indoor and outdoor categories.
The company not only delivered better-than-expected fiscal first-quarter results but also provided a robust outlook for fiscal 2016. Lowe’s expects sales growth (including the 53rd week) of nearly 6%, with the 53rd week expected to boost sales by 1.5% in the fiscal year. Comps, on a consolidated basis, are estimated to grow roughly 4% this year. Operating margin is expected to expand nearly 80–90 basis points. Further, Lowe’s now expects earnings for fiscal 2016, excluding the impact of RONA acquisition, to be $4.11 per share.
Following Lowe’s sturdy performance, the Zacks Consensus Estimate was revised higher as analysts raised their estimates. Analysts polled by Zacks are convinced that this Zacks Rank #2 (Buy) stock will see an upbeat performance in the future. Over the past 30 days, the Zacks Consensus Estimate for fiscal 2016 and 2017 has moved up by 4 cents and 3 cents to $4.03 and $4.68, respectively.
Recently, Lowe’s has completed the acquisition of leading Canadian retailer and supplier of hardware, building materials as well as home renovation products – RONA – for $2.4 billion.
Other Stocks to Consider
Other favorably placed stocks in the retail sector that warrant a look include Delta Apparel Inc. (DLA - Free Report) , Oxford Industries Inc. (OXM - Free Report) and Perry Ellis International Inc. . Both Delta Apparel and Oxford Industries sport a Zacks Rank #1 (Strong Buy), while Perry Ellis International holds a Zacks Rank #2 (Buy).
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report >>