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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 at $233.94 in the latest trading session, marking a -0.03% move from the prior day. This move lagged the S&P 500's daily gain of 0.28%. At the same time, the Dow added 0.08%, and the tech-heavy Nasdaq gained 5.28%.
Heading into today, shares of the home improvement retailer had gained 7.36% over the past month, outpacing the Retail-Wholesale sector's gain of 3.9% and the S&P 500's gain of 4.86% in that time.
Investors will be hoping for strength from Lowe's as it approaches its next earnings release, which is expected to be August 22, 2023. In that report, analysts expect Lowe's to post earnings of $4.49 per share. This would mark a year-over-year decline of 3.85%. Meanwhile, our latest consensus estimate is calling for revenue of $25 billion, down 9% from the prior-year quarter.
For the full year, our Zacks Consensus Estimates are projecting earnings of $13.37 per share and revenue of $87.9 billion, which would represent changes of -3.74% and -9.44%, respectively, from the prior year.
Any recent changes to analyst estimates for Lowe's should also be noted by investors. These recent revisions tend to reflect the evolving nature of short-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about 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 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 0.32% lower. Lowe's is currently sporting a Zacks Rank of #3 (Hold).
Digging into valuation, Lowe's currently has a Forward P/E ratio of 17.5. This represents a premium compared to its industry's average Forward P/E of 13.32.
Investors should also note that LOW has a PEG ratio of 1.53 right now. 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 industry currently had an average PEG ratio of 2.49 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 25, which puts it in the top 10% 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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Lowe's (LOW) Stock Sinks As Market Gains: What You Should Know
Lowe's (LOW - Free Report) closed at $233.94 in the latest trading session, marking a -0.03% move from the prior day. This move lagged the S&P 500's daily gain of 0.28%. At the same time, the Dow added 0.08%, and the tech-heavy Nasdaq gained 5.28%.
Heading into today, shares of the home improvement retailer had gained 7.36% over the past month, outpacing the Retail-Wholesale sector's gain of 3.9% and the S&P 500's gain of 4.86% in that time.
Investors will be hoping for strength from Lowe's as it approaches its next earnings release, which is expected to be August 22, 2023. In that report, analysts expect Lowe's to post earnings of $4.49 per share. This would mark a year-over-year decline of 3.85%. Meanwhile, our latest consensus estimate is calling for revenue of $25 billion, down 9% from the prior-year quarter.
For the full year, our Zacks Consensus Estimates are projecting earnings of $13.37 per share and revenue of $87.9 billion, which would represent changes of -3.74% and -9.44%, respectively, from the prior year.
Any recent changes to analyst estimates for Lowe's should also be noted by investors. These recent revisions tend to reflect the evolving nature of short-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about 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 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 0.32% lower. Lowe's is currently sporting a Zacks Rank of #3 (Hold).
Digging into valuation, Lowe's currently has a Forward P/E ratio of 17.5. This represents a premium compared to its industry's average Forward P/E of 13.32.
Investors should also note that LOW has a PEG ratio of 1.53 right now. 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 industry currently had an average PEG ratio of 2.49 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 25, which puts it in the top 10% 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.