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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 $108.42, moving +0.96% from the previous trading session. The stock outpaced the S&P 500's daily gain of 0.36%. At the same time, the Dow added 0.36%, and the tech-heavy Nasdaq gained 0.34%.
Heading into today, shares of the home improvement retailer had lost 0.21% over the past month, lagging the Retail-Wholesale sector's gain of 1.5% and the S&P 500's gain of 0.64% in that time.
Investors will be hoping for strength from LOW as it approaches its next earnings release. On that day, LOW is projected to report earnings of $1.36 per share, which would represent year-over-year growth of 14.29%. Meanwhile, our latest consensus estimate is calling for revenue of $17.74 billion, up 2.19% from the prior-year quarter.
For the full year, our Zacks Consensus Estimates are projecting earnings of $6.06 per share and revenue of $72.47 billion, which would represent changes of +17.9% and +1.62%, respectively, from the prior year.
It is also important to note the recent changes to analyst estimates for LOW. These recent revisions tend to reflect the evolving nature of short-term business trends. 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. 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 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. Within the past 30 days, our consensus EPS projection has moved 0.12% higher. LOW is currently a Zacks Rank #3 (Hold).
Valuation is also important, so investors should note that LOW has a Forward P/E ratio of 17.72 right now. For comparison, its industry has an average Forward P/E of 12.27, which means LOW is trading at a premium to the group.
Meanwhile, LOW's PEG ratio is currently 1.25. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. The Building Products - Retail industry currently had an average PEG ratio of 1.12 as of yesterday's close.
The Building Products - Retail industry is part of the Retail-Wholesale sector. This industry currently has a Zacks Industry Rank of 167, which puts it in the bottom 35% 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.
You can find more information on all of these metrics, and much 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 $108.42, moving +0.96% from the previous trading session. The stock outpaced the S&P 500's daily gain of 0.36%. At the same time, the Dow added 0.36%, and the tech-heavy Nasdaq gained 0.34%.
Heading into today, shares of the home improvement retailer had lost 0.21% over the past month, lagging the Retail-Wholesale sector's gain of 1.5% and the S&P 500's gain of 0.64% in that time.
Investors will be hoping for strength from LOW as it approaches its next earnings release. On that day, LOW is projected to report earnings of $1.36 per share, which would represent year-over-year growth of 14.29%. Meanwhile, our latest consensus estimate is calling for revenue of $17.74 billion, up 2.19% from the prior-year quarter.
For the full year, our Zacks Consensus Estimates are projecting earnings of $6.06 per share and revenue of $72.47 billion, which would represent changes of +17.9% and +1.62%, respectively, from the prior year.
It is also important to note the recent changes to analyst estimates for LOW. These recent revisions tend to reflect the evolving nature of short-term business trends. 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. 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 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. Within the past 30 days, our consensus EPS projection has moved 0.12% higher. LOW is currently a Zacks Rank #3 (Hold).
Valuation is also important, so investors should note that LOW has a Forward P/E ratio of 17.72 right now. For comparison, its industry has an average Forward P/E of 12.27, which means LOW is trading at a premium to the group.
Meanwhile, LOW's PEG ratio is currently 1.25. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. The Building Products - Retail industry currently had an average PEG ratio of 1.12 as of yesterday's close.
The Building Products - Retail industry is part of the Retail-Wholesale sector. This industry currently has a Zacks Industry Rank of 167, which puts it in the bottom 35% 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.
You can find more information on all of these metrics, and much more, on Zacks.com.