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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 $163.07, moving +1.34% from the previous trading session. This change outpaced the S&P 500's 0.57% gain on the day. Meanwhile, the Dow gained 1.44%, and the Nasdaq, a tech-heavy index, lost 0.61%.
Prior to today's trading, shares of the home improvement retailer had gained 6.4% over the past month. This has outpaced the Retail-Wholesale sector's loss of 1.09% and the S&P 500's gain of 0.83% 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 $1.19 per share, which would represent year-over-year growth of 26.6%. Our most recent consensus estimate is calling for quarterly revenue of $19.24 billion, up 20.05% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $8.71 per share and revenue of $88.48 billion. These totals would mark changes of +52.27% and +22.64%, respectively, from last year.
Any recent changes to analyst estimates for LOW should also be noted by investors. These revisions help to show the ever-changing nature of near-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. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, 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. Over the past month, the Zacks Consensus EPS estimate has moved 0.04% lower. LOW is currently a Zacks Rank #3 (Hold).
Looking at its valuation, LOW is holding a Forward P/E ratio of 18.47. This valuation marks a premium compared to its industry's average Forward P/E of 14.96.
It is also worth noting that LOW currently has a PEG ratio of 1.12. 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 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 group has a Zacks Industry Rank of 55, putting it in the top 22% 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.
Be sure to follow all of these stock-moving metrics, and many 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 $163.07, moving +1.34% from the previous trading session. This change outpaced the S&P 500's 0.57% gain on the day. Meanwhile, the Dow gained 1.44%, and the Nasdaq, a tech-heavy index, lost 0.61%.
Prior to today's trading, shares of the home improvement retailer had gained 6.4% over the past month. This has outpaced the Retail-Wholesale sector's loss of 1.09% and the S&P 500's gain of 0.83% 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 $1.19 per share, which would represent year-over-year growth of 26.6%. Our most recent consensus estimate is calling for quarterly revenue of $19.24 billion, up 20.05% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $8.71 per share and revenue of $88.48 billion. These totals would mark changes of +52.27% and +22.64%, respectively, from last year.
Any recent changes to analyst estimates for LOW should also be noted by investors. These revisions help to show the ever-changing nature of near-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. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, 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. Over the past month, the Zacks Consensus EPS estimate has moved 0.04% lower. LOW is currently a Zacks Rank #3 (Hold).
Looking at its valuation, LOW is holding a Forward P/E ratio of 18.47. This valuation marks a premium compared to its industry's average Forward P/E of 14.96.
It is also worth noting that LOW currently has a PEG ratio of 1.12. 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 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 group has a Zacks Industry Rank of 55, putting it in the top 22% 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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.