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Lowe's (LOW) Gains As Market Dips: What You Should Know
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Lowe's (LOW - Free Report) closed the most recent trading day at $228.86, moving +0.22% from the previous trading session. The stock outperformed the S&P 500, which registered a daily loss of 0.58%. Elsewhere, the Dow lost 0.12%, while the tech-heavy Nasdaq lost 1.15%.
Prior to today's trading, shares of the home improvement retailer had lost 7.93% over the past month. This has lagged the Retail-Wholesale sector's loss of 1.51% and the S&P 500's loss of 1.09% in that time.
The upcoming earnings release of Lowe's will be of great interest to investors. The company's earnings per share (EPS) are projected to be $2.94, reflecting a 19.89% decrease from the same quarter last year. Our most recent consensus estimate is calling for quarterly revenue of $21.07 billion, down 5.7% from the year-ago period.
For the full year, the Zacks Consensus Estimates project earnings of $12.21 per share and a revenue of $84.48 billion, demonstrating changes of -7.5% and -2.2%, respectively, from the preceding year.
It is also important to note the recent changes to analyst estimates for Lowe's. Recent revisions tend to reflect the latest near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. 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, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has remained unchanged. Lowe's presently features a Zacks Rank of #4 (Sell).
Looking at valuation, Lowe's is presently trading at a Forward P/E ratio of 18.7. This signifies a premium in comparison to the average Forward P/E of 15.63 for its industry.
One should further note that LOW currently holds a PEG ratio of 1.69. 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. By the end of yesterday's trading, the Building Products - Retail industry had an average PEG ratio of 1.96.
The Building Products - Retail industry is part of the Retail-Wholesale sector. This industry, currently bearing a Zacks Industry Rank of 167, finds itself in the bottom 34% echelons of all 250+ industries.
The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.
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Lowe's (LOW) Gains As Market Dips: What You Should Know
Lowe's (LOW - Free Report) closed the most recent trading day at $228.86, moving +0.22% from the previous trading session. The stock outperformed the S&P 500, which registered a daily loss of 0.58%. Elsewhere, the Dow lost 0.12%, while the tech-heavy Nasdaq lost 1.15%.
Prior to today's trading, shares of the home improvement retailer had lost 7.93% over the past month. This has lagged the Retail-Wholesale sector's loss of 1.51% and the S&P 500's loss of 1.09% in that time.
The upcoming earnings release of Lowe's will be of great interest to investors. The company's earnings per share (EPS) are projected to be $2.94, reflecting a 19.89% decrease from the same quarter last year. Our most recent consensus estimate is calling for quarterly revenue of $21.07 billion, down 5.7% from the year-ago period.
For the full year, the Zacks Consensus Estimates project earnings of $12.21 per share and a revenue of $84.48 billion, demonstrating changes of -7.5% and -2.2%, respectively, from the preceding year.
It is also important to note the recent changes to analyst estimates for Lowe's. Recent revisions tend to reflect the latest near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. 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, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has remained unchanged. Lowe's presently features a Zacks Rank of #4 (Sell).
Looking at valuation, Lowe's is presently trading at a Forward P/E ratio of 18.7. This signifies a premium in comparison to the average Forward P/E of 15.63 for its industry.
One should further note that LOW currently holds a PEG ratio of 1.69. 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. By the end of yesterday's trading, the Building Products - Retail industry had an average PEG ratio of 1.96.
The Building Products - Retail industry is part of the Retail-Wholesale sector. This industry, currently bearing a Zacks Industry Rank of 167, finds itself in the bottom 34% echelons of all 250+ industries.
The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.