Lowe's (LOW) closed the most recent trading day at $121.21, moving -0.22% from the previous trading session. This change lagged the S&P 500's 0.73% gain on the day. Meanwhile, the Dow gained 0.6%, and the Nasdaq, a tech-heavy index, added 1.13%.
Heading into today, shares of the home improvement retailer had lost 0.47% over the past month, lagging the Retail-Wholesale sector's gain of 2.21% and the S&P 500's gain of 2.95% 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 February 26, 2020. The company is expected to report EPS of $0.91, up 13.75% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $16.19 billion, up 3.47% from the year-ago period.
Any recent changes to analyst estimates for LOW should also be noted by investors. These recent revisions tend to reflect the evolving nature of short-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate remained stagnant. LOW is currently a Zacks Rank #2 (Buy).
Digging into valuation, LOW currently has a Forward P/E ratio of 18.15. This represents a premium compared to its industry's average Forward P/E of 14.15.
Also, we should mention that LOW has a PEG ratio of 1.29. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. Building Products - Retail stocks are, on average, holding a PEG ratio of 1.29 based on yesterday's closing prices.
The Building Products - Retail industry is part of the Retail-Wholesale sector. This industry currently has a Zacks Industry Rank of 172, which puts it in the bottom 33% 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.
Make sure to utilize Zacks. Com to follow all of these stock-moving metrics, and more, in the coming trading sessions.