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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 $197.73, moving -1.55% from the previous trading session. This change lagged the S&P 500's daily gain of 0.24%.

Coming into today, shares of the home improvement retailer had gained 4.25% in the past month. In that same time, the Retail-Wholesale sector gained 0.22%, while the S&P 500 gained 4.09%.

Wall Street will be looking for positivity from LOW as it approaches its next earnings report date. In that report, analysts expect LOW to post earnings of $3.91 per share. This would mark year-over-year growth of 4.27%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $26.87 billion, down 1.59% from the year-ago period.

For the full year, our Zacks Consensus Estimates are projecting earnings of $10.93 per share and revenue of $91.63 billion, which would represent changes of +23.36% and +2.26%, respectively, from the prior year.

Investors should also note any recent changes to analyst estimates for LOW. These revisions help to show the ever-changing nature of near-term business trends. 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 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 0.66% higher. LOW currently has a Zacks Rank of #3 (Hold).

Digging into valuation, LOW currently has a Forward P/E ratio of 18.38. This represents a premium compared to its industry's average Forward P/E of 14.45.

Also, we should mention that LOW has a PEG ratio of 1.34. 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 1.34 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 49, putting it in the top 20% 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

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