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Will Lowe's (LOW) Retain Its Earnings Beat Streak in Q2?
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Lowe's Companies, Inc. (LOW - Free Report) is scheduled to report second-quarter fiscal 2020 numbers on Aug 19, before the opening bell. The Zacks Consensus Estimate for fiscal second-quarter earnings has been revised 12 cents upward in the past seven days to $2.77 a share, suggesting nearly 29% growth from the year-ago quarter’s tally. If Lowe's tops earnings estimates this season, it will mark the fifth-straight beat for the company. Moreover, the consensus mark for quarterly revenues is pegged at $24.1 billion, indicating a 14.6% rise from the prior-year quarter’s reported figure.
We note that the home-improvement retailer has a trailing four-quarter earnings surprise of 13.1%, on average.
Key Factors to Note
We expect Lowe's fiscal second-quarter performance to have benefited from its retail fundamental strategy, robust execution and resilience in the home-improvement business model. The company has been gaining from investments in technology, impressive merchandise category and strength in the Pro business. Additionally, better process execution, cost containment and supply-chain transformation efforts have been catalysts.
We note that Lowe’s strong digital presence has been aiding the company’s performance for a while. Continuous investments in online infrastructure and smooth progress with the Google Cloud migration improved the company’s site stability, which has been aiding it to efficiently cater to the burgeoning demand. These positives along with gains from the essential DIY and pro categories have been driving the company’s comparable-sales performance.
What the Zacks Model Unveils
Our proven model predicts an earnings beat for Lowe's this season. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of beating estimates. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Lowe's currently carries a Zacks Rank #3 and an Earnings ESP of +7.58%.
More Stocks With Favorable Combinations
Here are a few other companies worth considering from the same sector as our model shows that these also have the right combination of elements to beat on earnings:
Dollar General (DG - Free Report) presently has an Earnings ESP of +6.84% and a Zacks Rank #2.
Big Lots (BIG - Free Report) currently has an Earnings ESP of +1.50% and a Zacks Rank #3.
Today's Best Stocks from Zacks
Would you like to see the updated picks from our best market-beating strategies? From 2017 through Q2 2020, while the S&P 500 gained an impressive +44.0%, five of our strategies returned +50.9%, +93.8%, +122.2%, +153.0%, and even +156.8%.
This outperformance has not just been a recent phenomenon. From 2000 – Q2 2020, while the S&P averaged +5.5% per year, our top strategies averaged up to +51.7% per year.
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Will Lowe's (LOW) Retain Its Earnings Beat Streak in Q2?
Lowe's Companies, Inc. (LOW - Free Report) is scheduled to report second-quarter fiscal 2020 numbers on Aug 19, before the opening bell. The Zacks Consensus Estimate for fiscal second-quarter earnings has been revised 12 cents upward in the past seven days to $2.77 a share, suggesting nearly 29% growth from the year-ago quarter’s tally. If Lowe's tops earnings estimates this season, it will mark the fifth-straight beat for the company. Moreover, the consensus mark for quarterly revenues is pegged at $24.1 billion, indicating a 14.6% rise from the prior-year quarter’s reported figure.
We note that the home-improvement retailer has a trailing four-quarter earnings surprise of 13.1%, on average.
Key Factors to Note
We expect Lowe's fiscal second-quarter performance to have benefited from its retail fundamental strategy, robust execution and resilience in the home-improvement business model. The company has been gaining from investments in technology, impressive merchandise category and strength in the Pro business. Additionally, better process execution, cost containment and supply-chain transformation efforts have been catalysts.
We note that Lowe’s strong digital presence has been aiding the company’s performance for a while. Continuous investments in online infrastructure and smooth progress with the Google Cloud migration improved the company’s site stability, which has been aiding it to efficiently cater to the burgeoning demand. These positives along with gains from the essential DIY and pro categories have been driving the company’s comparable-sales performance.
What the Zacks Model Unveils
Our proven model predicts an earnings beat for Lowe's this season. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of beating estimates. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Lowe's Companies, Inc. Price and EPS Surprise
Lowe's Companies, Inc. price-eps-surprise | Lowe's Companies, Inc. Quote
Lowe's currently carries a Zacks Rank #3 and an Earnings ESP of +7.58%.
More Stocks With Favorable Combinations
Here are a few other companies worth considering from the same sector as our model shows that these also have the right combination of elements to beat on earnings:
Home Depot (HD - Free Report) currently has an Earnings ESP of +10.73% and a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.
Dollar General (DG - Free Report) presently has an Earnings ESP of +6.84% and a Zacks Rank #2.
Big Lots (BIG - Free Report) currently has an Earnings ESP of +1.50% and a Zacks Rank #3.
Today's Best Stocks from Zacks
Would you like to see the updated picks from our best market-beating strategies? From 2017 through Q2 2020, while the S&P 500 gained an impressive +44.0%, five of our strategies returned +50.9%, +93.8%, +122.2%, +153.0%, and even +156.8%.
This outperformance has not just been a recent phenomenon. From 2000 – Q2 2020, while the S&P averaged +5.5% per year, our top strategies averaged up to +51.7% per year.
See their latest picks free >>