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Lowe's (LOW) Stock Sinks As Market Gains: What You Should Know

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Lowe's (LOW - Free Report) closed the most recent trading day at $198.91, moving -0.71% from the previous trading session. This move lagged the S&P 500's daily gain of 1.49%.

Prior to today's trading, shares of the home improvement retailer had lost 2.07% over the past month. This has was narrower than the Retail-Wholesale sector's loss of 5.6% and lagged the S&P 500's loss of 0.62% in that time.

LOW will be looking to display strength as it nears its next earnings release, which is expected to be May 19, 2021. The company is expected to report EPS of $2.54, up 43.5% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $23.37 billion, up 18.76% from the year-ago period.

For the full year, our Zacks Consensus Estimates are projecting earnings of $9.95 per share and revenue of $88.33 billion, which would represent changes of +12.3% and -1.41%, respectively, from the prior year.

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. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Our research shows that these estimate changes are directly correlated with near-term stock prices. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.

Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Within the past 30 days, our consensus EPS projection has moved 2.16% higher. LOW currently has a Zacks Rank of #3 (Hold).

Looking at its valuation, LOW is holding a Forward P/E ratio of 20.14. This valuation marks a premium compared to its industry's average Forward P/E of 16.58.

It is also worth noting that LOW currently has a PEG ratio of 1.55. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. LOW's industry had an average PEG ratio of 1.55 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 59, which puts it in the top 24% 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.

Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.


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