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Lowe's (LOW) Declines More Than Market: Some Information for Investors

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In the latest close session, Lowe's (LOW - Free Report) was down 2.04% at $218.80. The stock trailed the S&P 500, which registered a daily loss of 0.06%. Elsewhere, the Dow lost 0.11%, while the tech-heavy Nasdaq lost 0.32%.

Shares of the home improvement retailer witnessed a gain of 5.54% over the previous month, trailing the performance of the Retail-Wholesale sector with its gain of 7.55%, and outperforming the S&P 500's gain of 3.42%.

The investment community will be closely monitoring the performance of Lowe's in its forthcoming earnings report. The company is scheduled to release its earnings on August 19, 2026. The company is predicted to post an EPS of $4.25, indicating a 1.85% decline compared to the equivalent quarter last year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $26.18 billion, up 9.27% from the year-ago period.

LOW's full-year Zacks Consensus Estimates are calling for earnings of $12.46 per share and revenue of $92.98 billion. These results would represent year-over-year changes of +1.38% and +10.36%, respectively.

Any recent changes to analyst estimates for Lowe's should also be noted by investors. These revisions help to show the ever-changing nature of near-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the business performance and profit potential.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational rating system.

The Zacks Rank system, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has moved 0.18% lower. Lowe's presently features a Zacks Rank of #4 (Sell).

With respect to valuation, Lowe's is currently being traded at a Forward P/E ratio of 17.93. This signifies a discount in comparison to the average Forward P/E of 21.58 for its industry.

It is also worth noting that LOW currently has a PEG ratio of 2.83. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. The Retail - Home Furnishings industry had an average PEG ratio of 2.16 as trading concluded yesterday.

The Retail - Home Furnishings industry is part of the Retail-Wholesale sector. This group has a Zacks Industry Rank of 187, putting it in the bottom 24% of all 250+ industries.

The Zacks Industry Rank is ordered from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

You can find more information on all of these metrics, and much more, on Zacks.com.

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