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Lowe's (LOW) Stock Declines While Market Improves: Some Information for Investors

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Lowe's (LOW - Free Report) closed at $231.70 in the latest trading session, marking a -0.19% move from the prior day. This move lagged the S&P 500's daily gain of 1.03%. On the other hand, the Dow registered a gain of 0.46%, and the technology-centric Nasdaq increased by 1.19%.

Shares of the home improvement retailer witnessed a loss of 3% over the previous month, trailing the performance of the Retail-Wholesale sector with its gain of 0.23% and the S&P 500's loss of 1.57%.

The investment community will be closely monitoring the performance of Lowe's in its forthcoming earnings report. The company's upcoming EPS is projected at $2.94, signifying a 19.89% drop compared to the same quarter of the previous year. Simultaneously, our latest consensus estimate expects the revenue to be $21.07 billion, showing a 5.7% drop compared to the year-ago quarter.

LOW's full-year Zacks Consensus Estimates are calling for earnings of $12.21 per share and revenue of $84.48 billion. These results would represent year-over-year changes of -7.5% and -2.2%, respectively.

Investors should also pay attention to any latest changes in analyst estimates for Lowe's. Such recent modifications usually signify the changing landscape of near-term business trends. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the company's business health and profitability.

Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.

Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Within the past 30 days, our consensus EPS projection remained stagnant. Currently, Lowe's is carrying a Zacks Rank of #4 (Sell).

Valuation is also important, so investors should note that Lowe's has a Forward P/E ratio of 19.01 right now. This valuation marks a premium compared to its industry's average Forward P/E of 14.57.

We can additionally observe that LOW currently boasts a PEG ratio of 1.72. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. The Building Products - Retail industry had an average PEG ratio of 2 as trading concluded yesterday.

The Building Products - Retail industry is part of the Retail-Wholesale sector. This industry currently has a Zacks Industry Rank of 210, which puts it in the bottom 17% of all 250+ industries.

The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Ensure to harness Zacks.com to stay updated with all these stock-shifting metrics, among others, in the next trading sessions.


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