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Lowe's (LOW) Gains But Lags Market: What You Should Know
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Lowe's (LOW - Free Report) closed the most recent trading day at $97.95, moving +1.47% from the previous trading session. The stock lagged the S&P 500's daily gain of 1.86%. At the same time, the Dow added 1.63%, and the tech-heavy Nasdaq gained 2.95%.
Coming into today, shares of the home improvement retailer had lost 15.91% in the past month. In that same time, the Retail-Wholesale sector lost 11.88%, while the S&P 500 lost 8.85%.
LOW will be looking to display strength as it nears its next earnings release, which is expected to be November 20, 2018. The company is expected to report EPS of $1.02, down 2.86% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $17.40 billion, up 3.74% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $5.23 per share and revenue of $71.65 billion. These totals would mark changes of +19.13% and +4.41%, respectively, from last year.
Investors might also notice recent changes to analyst estimates for LOW. 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 shows that these estimate changes are directly correlated with near-term stock prices. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.
The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 0.01% higher within the past month. LOW is currently sporting a Zacks Rank of #3 (Hold).
Digging into valuation, LOW currently has a Forward P/E ratio of 18.47. For comparison, its industry has an average Forward P/E of 12.98, which means LOW is trading at a premium to the group.
Investors should also note that LOW has a PEG ratio of 1.28 right now. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. The Building Products - Retail was holding an average PEG ratio of 1.28 at yesterday's closing price.
The Building Products - Retail industry is part of the Retail-Wholesale sector. This industry currently has a Zacks Industry Rank of 185, which puts it in the bottom 27% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our 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) Gains But Lags Market: What You Should Know
Lowe's (LOW - Free Report) closed the most recent trading day at $97.95, moving +1.47% from the previous trading session. The stock lagged the S&P 500's daily gain of 1.86%. At the same time, the Dow added 1.63%, and the tech-heavy Nasdaq gained 2.95%.
Coming into today, shares of the home improvement retailer had lost 15.91% in the past month. In that same time, the Retail-Wholesale sector lost 11.88%, while the S&P 500 lost 8.85%.
LOW will be looking to display strength as it nears its next earnings release, which is expected to be November 20, 2018. The company is expected to report EPS of $1.02, down 2.86% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $17.40 billion, up 3.74% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $5.23 per share and revenue of $71.65 billion. These totals would mark changes of +19.13% and +4.41%, respectively, from last year.
Investors might also notice recent changes to analyst estimates for LOW. 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 shows that these estimate changes are directly correlated with near-term stock prices. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.
The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 0.01% higher within the past month. LOW is currently sporting a Zacks Rank of #3 (Hold).
Digging into valuation, LOW currently has a Forward P/E ratio of 18.47. For comparison, its industry has an average Forward P/E of 12.98, which means LOW is trading at a premium to the group.
Investors should also note that LOW has a PEG ratio of 1.28 right now. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. The Building Products - Retail was holding an average PEG ratio of 1.28 at yesterday's closing price.
The Building Products - Retail industry is part of the Retail-Wholesale sector. This industry currently has a Zacks Industry Rank of 185, which puts it in the bottom 27% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our 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.