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Lowe's (LOW) Rises But Trails Market: What Investors Should Know
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In the latest market close, Lowe's (LOW - Free Report) reached $194.58, with a +0.18% movement compared to the previous day. The stock trailed the S&P 500, which registered a daily gain of 0.28%. Meanwhile, the Dow gained 0.17%, and the Nasdaq, a tech-heavy index, added 0.9%.
The the stock of home improvement retailer has fallen by 3.24% in the past month, lagging the Retail-Wholesale sector's gain of 4.99% and the S&P 500's gain of 1.45%.
Investors will be eagerly watching for the performance of Lowe's in its upcoming earnings disclosure. The company's earnings report is set to be unveiled on November 21, 2023. In that report, analysts expect Lowe's to post earnings of $3.10 per share. This would mark a year-over-year decline of 5.2%. Alongside, our most recent consensus estimate is anticipating revenue of $21.1 billion, indicating a 10.14% downward movement from the same quarter last year.
For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $13.41 per share and a revenue of $87.71 billion, representing changes of -3.46% and -9.63%, respectively, from the prior year.
Any recent changes to analyst estimates for Lowe's should also be noted by investors. These latest adjustments often mirror the shifting dynamics of short-term business patterns. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable rating system.
The Zacks Rank system, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed a 0.22% decrease. At present, Lowe's boasts a Zacks Rank of #3 (Hold).
Looking at its valuation, Lowe's is holding a Forward P/E ratio of 14.49. This represents a premium compared to its industry's average Forward P/E of 10.58.
It is also worth noting that LOW currently has a PEG ratio of 1.27. 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 average PEG ratio for the Building Products - Retail industry stood at 1.83 at the close of the market yesterday.
The Building Products - Retail industry is part of the Retail-Wholesale sector. Currently, this industry holds a Zacks Industry Rank of 189, positioning it in the bottom 25% of all 250+ industries.
The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming 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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Lowe's (LOW) Rises But Trails Market: What Investors Should Know
In the latest market close, Lowe's (LOW - Free Report) reached $194.58, with a +0.18% movement compared to the previous day. The stock trailed the S&P 500, which registered a daily gain of 0.28%. Meanwhile, the Dow gained 0.17%, and the Nasdaq, a tech-heavy index, added 0.9%.
The the stock of home improvement retailer has fallen by 3.24% in the past month, lagging the Retail-Wholesale sector's gain of 4.99% and the S&P 500's gain of 1.45%.
Investors will be eagerly watching for the performance of Lowe's in its upcoming earnings disclosure. The company's earnings report is set to be unveiled on November 21, 2023. In that report, analysts expect Lowe's to post earnings of $3.10 per share. This would mark a year-over-year decline of 5.2%. Alongside, our most recent consensus estimate is anticipating revenue of $21.1 billion, indicating a 10.14% downward movement from the same quarter last year.
For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $13.41 per share and a revenue of $87.71 billion, representing changes of -3.46% and -9.63%, respectively, from the prior year.
Any recent changes to analyst estimates for Lowe's should also be noted by investors. These latest adjustments often mirror the shifting dynamics of short-term business patterns. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable rating system.
The Zacks Rank system, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed a 0.22% decrease. At present, Lowe's boasts a Zacks Rank of #3 (Hold).
Looking at its valuation, Lowe's is holding a Forward P/E ratio of 14.49. This represents a premium compared to its industry's average Forward P/E of 10.58.
It is also worth noting that LOW currently has a PEG ratio of 1.27. 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 average PEG ratio for the Building Products - Retail industry stood at 1.83 at the close of the market yesterday.
The Building Products - Retail industry is part of the Retail-Wholesale sector. Currently, this industry holds a Zacks Industry Rank of 189, positioning it in the bottom 25% of all 250+ industries.
The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming 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.