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Lowe's (LOW) Surpasses Market Returns: Some Facts Worth Knowing

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Lowe's (LOW - Free Report) ended the recent trading session at $183.67, demonstrating a +2.32% change from the preceding day's closing price. The stock's change was more than the S&P 500's daily gain of 0.58%. At the same time, the Dow added 0.49%, and the tech-heavy Nasdaq gained 0.45%.

Heading into today, shares of the home improvement retailer had lost 12.2% over the past month, lagging the Retail-Wholesale sector's loss of 4.5% and the S&P 500's gain of 0.84%.

The investment community will be paying close attention to the earnings performance of Lowe's in its upcoming release. The company is slated to reveal its earnings on November 18, 2026. The company's upcoming EPS is projected at $2.86, signifying a 6.54% drop compared to the same quarter of the previous year. Meanwhile, our latest consensus estimate is calling for revenue of $22.37 billion, up 7.46% from the prior-year quarter.

For the full year, the Zacks Consensus Estimates project earnings of $12.26 per share and a revenue of $91.99 billion, demonstrating changes of -0.24% and +6.61%, respectively, from the preceding year.

Investors should also note any recent changes to analyst estimates for Lowe's. Such recent modifications usually signify the changing landscape of near-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the business performance and profit potential.

Our research shows that these estimate changes are directly correlated with near-term stock prices. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable 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. The Zacks Consensus EPS estimate has moved 0.01% lower within the past month. As of now, Lowe's holds a Zacks Rank of #4 (Sell).

In terms of valuation, Lowe's is currently trading at a Forward P/E ratio of 14.64. This represents a discount compared to its industry average Forward P/E of 16.8.

Meanwhile, LOW's PEG ratio is currently 1.5. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. By the end of yesterday's trading, the Retail - Home Furnishings industry had an average PEG ratio of 1.45.

The Retail - Home Furnishings industry is part of the Retail-Wholesale sector. This industry currently has a Zacks Industry Rank of 112, which puts it in the top 46% of all 250+ industries.

The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in the groups. 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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