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

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Lowe's (LOW - Free Report) closed the most recent trading day at $165.14, moving -1.78% from the previous trading session. This move lagged the S&P 500's daily loss of 0.3%. At the same time, the Dow lost 0.8%, and the tech-heavy Nasdaq gained 0.64%.

Prior to today's trading, shares of the home improvement retailer had gained 3.41% over the past month. This has lagged the Retail-Wholesale sector's gain of 5.08% and outpaced the S&P 500's gain of 3.25% in that time.

Investors will be hoping for strength from LOW as it approaches its next earnings release, which is expected to be November 18, 2020. The company is expected to report EPS of $1.90, up 34.75% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $20.56 billion, up 18.22% from the year-ago period.

LOW's full-year Zacks Consensus Estimates are calling for earnings of $8.51 per share and revenue of $85.11 billion. These results would represent year-over-year changes of +48.78% and +17.97%, respectively.

Investors should also note any recent changes to analyst estimates for LOW. These revisions typically reflect the latest short-term business trends, which can change frequently. 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 0.35% higher within the past month. LOW is currently sporting a Zacks Rank of #2 (Buy).

Digging into valuation, LOW currently has a Forward P/E ratio of 19.76. Its industry sports an average Forward P/E of 19.69, so we one might conclude that LOW is trading at a premium comparatively.

We can also see that LOW currently has a PEG ratio of 1.22. 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 was holding an average PEG ratio of 1.22 at yesterday's closing price.

The Building Products - Retail industry is part of the Retail-Wholesale sector. This group has a Zacks Industry Rank of 82, putting it in the top 33% of all 250+ industries.

The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

To follow LOW in the coming trading sessions, be sure to utilize Zacks.com.


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