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Lowe's (LOW) Stock Moves -0.39%: What You Should Know

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Lowe's (LOW - Free Report) closed at $119.76 in the latest trading session, marking a -0.39% move from the prior day. This move was narrower than the S&P 500's daily loss of 1.57%. Meanwhile, the Dow lost 1.57%, and the Nasdaq, a tech-heavy index, lost 1.89%.

Prior to today's trading, shares of the home improvement retailer had gained 0.42% over the past month. This has lagged the Retail-Wholesale sector's gain of 1.09% and the S&P 500's gain of 2.35% in that time.

Investors will be hoping for strength from LOW as it approaches its next earnings release. In that report, analysts expect LOW to post earnings of $0.91 per share. This would mark year-over-year growth of 13.75%. Meanwhile, our latest consensus estimate is calling for revenue of $16.19 billion, up 3.47% from the prior-year quarter.

For the full year, our Zacks Consensus Estimates are projecting earnings of $5.70 per share and revenue of $72.30 billion, which would represent changes of +10.89% and +1.38%, respectively, from the prior year.

It is also important to note the recent changes to analyst estimates for LOW. Recent revisions tend to reflect the latest near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.

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. Over the past month, the Zacks Consensus EPS estimate remained stagnant. LOW is currently sporting a Zacks Rank of #2 (Buy).

Investors should also note LOW's current valuation metrics, including its Forward P/E ratio of 21.1. This valuation marks a premium compared to its industry's average Forward P/E of 14.45.

Also, we should mention that LOW has a PEG ratio of 1.5. 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 1.32 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 50, putting it in the top 20% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our individual 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.

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