Back to top

Image: Bigstock

Lowe's (LOW) Increases Despite Market Slip: Here's What You Need to Know

Read MoreHide Full Article

The most recent trading session ended with Lowe's (LOW - Free Report) standing at $262.20, reflecting a +0.34% shift from the previouse trading day's closing. The stock's performance was ahead of the S&P 500's daily loss of 0.29%. At the same time, the Dow lost 0.32%, and the tech-heavy Nasdaq lost 0.5%.

Shares of the home improvement retailer witnessed a gain of 4.77% over the previous month, beating the performance of the Retail-Wholesale sector with its gain of 3.53% and the S&P 500's gain of 2.52%.

Analysts and investors alike will be keeping a close eye on the performance of Lowe's in its upcoming earnings disclosure. The company's earnings report is set to go public on February 26, 2025. The company's earnings per share (EPS) are projected to be $1.81, reflecting a 2.26% increase from the same quarter last year. In the meantime, our current consensus estimate forecasts the revenue to be $18.22 billion, indicating a 2.07% decline compared to the corresponding quarter of the prior year.

Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $11.88 per share and revenue of $83.32 billion, indicating changes of -10% and -3.54%, respectively, compared to the previous year.

Investors should also pay attention to any latest changes in analyst estimates for Lowe's. These revisions typically reflect the latest short-term business trends, which can change frequently. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable 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 moved 0.03% higher. Lowe's is currently a Zacks Rank #3 (Hold).

In the context of valuation, Lowe's is at present trading with a Forward P/E ratio of 22. This signifies a premium in comparison to the average Forward P/E of 21.49 for its industry.

We can additionally observe that LOW currently boasts a PEG ratio of 2.19. 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. Retail - Home Furnishings stocks are, on average, holding a PEG ratio of 2.18 based on yesterday's closing prices.

The Retail - Home Furnishings industry is part of the Retail-Wholesale sector. Currently, this industry holds a Zacks Industry Rank of 149, positioning it in the bottom 41% of all 250+ industries.

The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding trading sessions.


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