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Lowe's (LOW) Laps the Stock Market: Here's Why

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Lowe's (LOW - Free Report) ended the recent trading session at $226.83, demonstrating a +2.68% change from the preceding day's closing price. The stock's performance was ahead of the S&P 500's daily gain of 0.06%. Elsewhere, the Dow gained 0.41%, while the tech-heavy Nasdaq lost 0.39%.

The stock of home improvement retailer has risen by 1.07% in the past month, lagging the Retail-Wholesale sector's gain of 5.04% and the S&P 500's gain of 5.88%.

The upcoming earnings release of Lowe's will be of great interest to investors. The company's earnings report is expected on August 20, 2025. The company's upcoming EPS is projected at $4.25, signifying a 3.66% increase compared to the same quarter of the previous year. Meanwhile, our latest consensus estimate is calling for revenue of $23.96 billion, up 1.61% from the prior-year quarter.

For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $12.3 per share and a revenue of $84.38 billion, representing changes of +2.5% and +0.84%, respectively, from the prior year.

Investors should also take note of any recent adjustments to analyst estimates for Lowe's. These revisions typically reflect the latest short-term business trends, which can change frequently. Consequently, upward revisions in estimates express analysts' positivity towards the business operations and its ability to generate profits.

Our research shows that these estimate changes are directly correlated with near-term stock prices. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical rating system.

The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Over the past month, there's been a 0.1% rise in the Zacks Consensus EPS estimate. At present, Lowe's boasts a Zacks Rank of #3 (Hold).

In terms of valuation, Lowe's is currently trading at a Forward P/E ratio of 17.96. This expresses a discount compared to the average Forward P/E of 20.18 of its industry.

Also, we should mention that LOW has a PEG ratio of 2.09. 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 Retail - Home Furnishings industry had an average PEG ratio of 2.24.

The Retail - Home Furnishings industry is part of the Retail-Wholesale sector. This industry currently has a Zacks Industry Rank of 97, which puts it in the top 40% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within 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 use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming trading sessions.


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