Back to top

Image: Bigstock

Lowe's (LOW) Stock Moves -0.05%: What You Should Know

Read MoreHide Full Article

In the latest trading session, Lowe's (LOW - Free Report) closed at $211.98, marking a -0.05% move from the previous day. The stock's performance was ahead of the S&P 500's daily loss of 0.07%. At the same time, the Dow added 0.16%, and the tech-heavy Nasdaq lost 0.36%.

Coming into today, shares of the home improvement retailer had lost 4.85% in the past month. In that same time, the Retail-Wholesale sector gained 1.02%, while the S&P 500 gained 3.05%.

Investors will be eagerly watching for the performance of Lowe's in its upcoming earnings disclosure. The company is predicted to post an EPS of $1.68, indicating a 26.32% decline compared to the equivalent quarter last year. At the same time, our most recent consensus estimate is projecting a revenue of $18.36 billion, reflecting a 18.18% fall from the equivalent quarter last year.

For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $13.02 per share and a revenue of $86.14 billion, representing changes of -6.26% and -11.25%, respectively, from the prior year.

Investors should also take note of any recent adjustments to analyst estimates for Lowe's. Such recent modifications usually signify the changing landscape of near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.

The Zacks Rank system, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed a 0.01% decrease. Right now, Lowe's possesses a Zacks Rank of #3 (Hold).

Valuation is also important, so investors should note that Lowe's has a Forward P/E ratio of 16.29 right now. This indicates a premium in contrast to its industry's Forward P/E of 13.28.

It's also important to note that LOW currently trades at a PEG ratio of 1.51. 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. As of the close of trade yesterday, the Building Products - Retail industry held an average PEG ratio of 2.06.

The Building Products - Retail industry is part of the Retail-Wholesale sector. Currently, this industry holds a Zacks Industry Rank of 167, positioning it in the bottom 34% 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

See More Zacks Research for These Tickers

Normally $25 each - click below to receive one report FREE:

Lowe's Companies, Inc. (LOW) - free report >>

Published in