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Lowe's (LOW) Gains But Lags Market: What You Should Know
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Lowe's (LOW - Free Report) closed at $207.78 in the latest trading session, marking a +0.4% move from the prior day. This move lagged the S&P 500's daily gain of 0.59%. Elsewhere, the Dow gained 0.35%, while the tech-heavy Nasdaq added 0.83%.
Heading into today, shares of the home improvement retailer had lost 10.14% over the past month, lagging the Retail-Wholesale sector's loss of 3.16% and the S&P 500's loss of 2.84% in that time.
Wall Street will be looking for positivity from Lowe's as it approaches its next earnings report date. In that report, analysts expect Lowe's to post earnings of $3.13 per share. This would mark a year-over-year decline of 4.28%. Our most recent consensus estimate is calling for quarterly revenue of $21.19 billion, down 9.74% from the year-ago period.
LOW's full-year Zacks Consensus Estimates are calling for earnings of $13.44 per share and revenue of $87.91 billion. These results would represent year-over-year changes of -3.24% and -7.84%, respectively.
It is also important to note the recent changes to analyst estimates for Lowe's. 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. 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.
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 0.04% lower. Lowe's is holding a Zacks Rank of #3 (Hold) right now.
Digging into valuation, Lowe's currently has a Forward P/E ratio of 15.4. For comparison, its industry has an average Forward P/E of 11.53, which means Lowe's is trading at a premium to the group.
Also, we should mention that LOW has a PEG ratio of 1.35. 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. LOW's industry had an average PEG ratio of 1.92 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 56, putting it in the top 23% 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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
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Lowe's (LOW) Gains But Lags Market: What You Should Know
Lowe's (LOW - Free Report) closed at $207.78 in the latest trading session, marking a +0.4% move from the prior day. This move lagged the S&P 500's daily gain of 0.59%. Elsewhere, the Dow gained 0.35%, while the tech-heavy Nasdaq added 0.83%.
Heading into today, shares of the home improvement retailer had lost 10.14% over the past month, lagging the Retail-Wholesale sector's loss of 3.16% and the S&P 500's loss of 2.84% in that time.
Wall Street will be looking for positivity from Lowe's as it approaches its next earnings report date. In that report, analysts expect Lowe's to post earnings of $3.13 per share. This would mark a year-over-year decline of 4.28%. Our most recent consensus estimate is calling for quarterly revenue of $21.19 billion, down 9.74% from the year-ago period.
LOW's full-year Zacks Consensus Estimates are calling for earnings of $13.44 per share and revenue of $87.91 billion. These results would represent year-over-year changes of -3.24% and -7.84%, respectively.
It is also important to note the recent changes to analyst estimates for Lowe's. 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. 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.
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 0.04% lower. Lowe's is holding a Zacks Rank of #3 (Hold) right now.
Digging into valuation, Lowe's currently has a Forward P/E ratio of 15.4. For comparison, its industry has an average Forward P/E of 11.53, which means Lowe's is trading at a premium to the group.
Also, we should mention that LOW has a PEG ratio of 1.35. 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. LOW's industry had an average PEG ratio of 1.92 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 56, putting it in the top 23% 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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.