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Lowe's (LOW) Stock Sinks As Market Gains: What You Should Know

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Lowe's (LOW - Free Report) ended the recent trading session at $246.68, demonstrating a -1.61% swing from the preceding day's closing price. This change lagged the S&P 500's 0.24% gain on the day. Elsewhere, the Dow gained 0.16%, while the tech-heavy Nasdaq added 0.08%.

Shares of the home improvement retailer have depreciated by 5.16% over the course of the past month, underperforming the Retail-Wholesale sector's gain of 5.98% and the S&P 500's gain of 2.37%.

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 is forecasted to report an EPS of $1.82, showcasing a 2.82% upward movement from the corresponding quarter of the prior year. In the meantime, our current consensus estimate forecasts the revenue to be $18.27 billion, indicating a 1.79% decline compared to the corresponding quarter of the prior year.

Investors should also take note of any recent adjustments 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 suggests that these changes in estimates have a direct relationship with upcoming stock price performance. 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, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. The Zacks Consensus EPS estimate has moved 0.18% lower within the past month. Lowe's currently has a Zacks Rank of #3 (Hold).

In terms of valuation, Lowe's is presently being traded at a Forward P/E ratio of 20. This denotes a discount relative to the industry's average Forward P/E of 20.08.

It is also worth noting that LOW currently has a PEG ratio of 1.99. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. By the end of yesterday's trading, the Retail - Home Furnishings industry had an average PEG ratio of 2.03.

The Retail - Home Furnishings industry is part of the Retail-Wholesale sector. This industry currently has a Zacks Industry Rank of 141, which puts it in the bottom 44% 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.

Be sure to use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming trading sessions.


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