Back to top

Image: Bigstock

Lowe's (LOW) Stock Sinks As Market Gains: Here's Why

Read MoreHide Full Article

In the latest close session, Lowe's (LOW - Free Report) was down 3.47% at $225.23. This change lagged the S&P 500's daily gain of 0.81%. Meanwhile, the Dow gained 0.73%, and the Nasdaq, a tech-heavy index, added 1.03%.

Shares of the home improvement retailer witnessed a loss of 4.88% over the previous month, trailing the performance of the Retail-Wholesale sector with its gain of 11.15%, and the S&P 500's gain of 9.47%.

The upcoming earnings release of Lowe's will be of great interest to investors. The company's earnings report is expected on May 20, 2026. On that day, Lowe's is projected to report earnings of $2.96 per share, which would represent year-over-year growth of 1.37%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $22.91 billion, up 9.48% from the year-ago period.

For the annual period, the Zacks Consensus Estimates anticipate earnings of $12.71 per share and a revenue of $93.31 billion, signifying shifts of +3.42% and +8.14%, respectively, from the last year.

Investors might also notice recent changes to analyst estimates for Lowe's. Recent revisions tend to reflect the latest near-term business trends. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the business health and profitability.

Our research shows that these estimate changes are directly correlated with near-term stock prices. 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 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. Within the past 30 days, our consensus EPS projection has moved 0.13% higher. At present, Lowe's boasts a Zacks Rank of #4 (Sell).

Looking at its valuation, Lowe's is holding a Forward P/E ratio of 17.6. This expresses a discount compared to the average Forward P/E of 20.8 of its industry.

Investors should also note that LOW has a PEG ratio of 4.82 right now. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. The Retail - Home Furnishings was holding an average PEG ratio of 1.78 at yesterday's closing price.

The Retail - Home Furnishings industry is part of the Retail-Wholesale sector. This industry, currently bearing a Zacks Industry Rank of 217, finds itself in the bottom 12% echelons 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.

To follow LOW in the coming trading sessions, be sure to utilize Zacks.com.

Zacks' 7 Best Strong Buy Stocks (New Research Report)

Valued at $99, click below to receive our just-released report predicting the 7 stocks that will soar highest in the coming month.

Click Here, It's Really Free

Published in