We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Lowe's (LOW) Gains But Lags Market: What You Should Know
Read MoreHide Full Article
Lowe's (LOW - Free Report) closed at $189.92 in the latest trading session, marking a +0.7% move from the prior day. The stock lagged the S&P 500's daily gain of 2.62%. At the same time, the Dow added 1.37%, and the tech-heavy Nasdaq gained 0.05%.
Prior to today's trading, shares of the home improvement retailer had gained 7.94% over the past month. This has outpaced the Retail-Wholesale sector's loss of 1.49% and the S&P 500's gain of 0.24% in that time.
Wall Street will be looking for positivity from Lowe's as it approaches its next earnings report date. On that day, Lowe's is projected to report earnings of $4.67 per share, which would represent year-over-year growth of 9.88%. Our most recent consensus estimate is calling for quarterly revenue of $28.34 billion, up 2.79% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $13.44 per share and revenue of $97.65 billion. These totals would mark changes of +11.63% and +1.46%, respectively, from last year.
Investors might also notice recent changes to analyst estimates for Lowe's. 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.
Our research shows that these estimate changes are directly correlated with near-term stock prices. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
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. The Zacks Consensus EPS estimate has moved 0.46% lower within the past month. Lowe's is currently a Zacks Rank #3 (Hold).
Digging into valuation, Lowe's currently has a Forward P/E ratio of 14.03. This represents a premium compared to its industry's average Forward P/E of 9.12.
It is also worth noting that LOW currently has a PEG ratio of 1.19. 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. The Building Products - Retail industry currently had an average PEG ratio of 1.95 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 155, which puts it in the bottom 39% 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.
You can find more information on all of these metrics, and much more, on Zacks.com.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Lowe's (LOW) Gains But Lags Market: What You Should Know
Lowe's (LOW - Free Report) closed at $189.92 in the latest trading session, marking a +0.7% move from the prior day. The stock lagged the S&P 500's daily gain of 2.62%. At the same time, the Dow added 1.37%, and the tech-heavy Nasdaq gained 0.05%.
Prior to today's trading, shares of the home improvement retailer had gained 7.94% over the past month. This has outpaced the Retail-Wholesale sector's loss of 1.49% and the S&P 500's gain of 0.24% in that time.
Wall Street will be looking for positivity from Lowe's as it approaches its next earnings report date. On that day, Lowe's is projected to report earnings of $4.67 per share, which would represent year-over-year growth of 9.88%. Our most recent consensus estimate is calling for quarterly revenue of $28.34 billion, up 2.79% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $13.44 per share and revenue of $97.65 billion. These totals would mark changes of +11.63% and +1.46%, respectively, from last year.
Investors might also notice recent changes to analyst estimates for Lowe's. 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.
Our research shows that these estimate changes are directly correlated with near-term stock prices. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
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. The Zacks Consensus EPS estimate has moved 0.46% lower within the past month. Lowe's is currently a Zacks Rank #3 (Hold).
Digging into valuation, Lowe's currently has a Forward P/E ratio of 14.03. This represents a premium compared to its industry's average Forward P/E of 9.12.
It is also worth noting that LOW currently has a PEG ratio of 1.19. 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. The Building Products - Retail industry currently had an average PEG ratio of 1.95 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 155, which puts it in the bottom 39% 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.
You can find more information on all of these metrics, and much more, on Zacks.com.