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Lowe's (LOW) Dips More Than Broader Markets: What You Should Know

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Lowe's (LOW - Free Report) closed at $111.36 in the latest trading session, marking a -0.89% move from the prior day. This change lagged the S&P 500's daily loss of 0.45%. Meanwhile, the Dow lost 0.25%, and the Nasdaq, a tech-heavy index, lost 0.5%.

Heading into today, shares of the home improvement retailer had lost 0.85% over the past month, lagging the Retail-Wholesale sector's gain of 4.73% and the S&P 500's gain of 2.62% in that time.

Wall Street will be looking for positivity from LOW as it approaches its next earnings report date. This is expected to be May 22, 2019. On that day, LOW is projected to report earnings of $1.36 per share, which would represent year-over-year growth of 14.29%. Our most recent consensus estimate is calling for quarterly revenue of $17.74 billion, up 2.21% 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 +1.63%, respectively, from last year.

Investors might also notice recent changes to analyst estimates for LOW. These revisions help to show the ever-changing nature of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business 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 0.01% lower. LOW is currently a Zacks Rank #4 (Sell).

Investors should also note LOW's current valuation metrics, including its Forward P/E ratio of 18.54. Its industry sports an average Forward P/E of 14.79, so we one might conclude that LOW is trading at a premium comparatively.

Also, we should mention that LOW has a PEG ratio of 1.31. 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. The Building Products - Retail industry currently had an average PEG ratio of 1.31 as of yesterday's close.

The Building Products - Retail industry is part of the Retail-Wholesale sector. This group has a Zacks Industry Rank of 100, putting it in the top 40% of all 250+ industries.

The Zacks Industry Rank includes is listed in order 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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