Back to top

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

Read MoreHide Full Article

In the latest trading session, Lowe's (LOW - Free Report) closed at $113.31, marking a +1.23% move from the previous day. This move outpaced the S&P 500's daily gain of 0.21%. At the same time, the Dow added 0.64%, and the tech-heavy Nasdaq lost 0.05%.

Coming into today, shares of the home improvement retailer had gained 9.37% in the past month. In that same time, the Retail-Wholesale sector gained 2.34%, while the S&P 500 gained 2.57%.

Wall Street will be looking for positivity from LOW as it approaches its next earnings report date. On that day, LOW is projected to report earnings of $1.36 per share, which would represent year-over-year growth of 14.29%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $17.74 billion, up 2.19% from the year-ago period.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $6.06 per share and revenue of $72.47 billion. These totals would mark changes of +17.9% and +1.62%, respectively, from last year.

Investors should also note any recent changes to analyst estimates for LOW. These revisions help to show the ever-changing nature of near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

Our research shows that these estimate changes are directly correlated with near-term stock prices. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.

Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. The Zacks Consensus EPS estimate remained stagnant within the past month. LOW is currently a Zacks Rank #3 (Hold).

Digging into valuation, LOW currently has a Forward P/E ratio of 18.47. This represents a premium compared to its industry's average Forward P/E of 12.26.

Investors should also note that LOW has a PEG ratio of 1.3 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 Building Products - Retail industry currently had an average PEG ratio of 1.12 as of yesterday's close.

The Building Products - Retail industry is part of the Retail-Wholesale sector. This industry currently has a Zacks Industry Rank of 176, which puts it in the bottom 31% 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.

Make sure to utilize Zacks. Com to follow all of these stock-moving metrics, and more, in the coming trading sessions.




In-Depth Zacks Research for the Tickers Above


Normally $25 each - click below to receive one report FREE:


Lowe's Companies, Inc. (LOW) - free report >>

More from Zacks Tale of the Tape

You May Like

Published in