Lowe's (LOW) closed the most recent trading day at $82.16, moving -0.84% from the previous trading session. This change was narrower than the S&P 500's 1.51% loss on the day. Meanwhile, the Dow lost 1.69%, and the Nasdaq, a tech-heavy index, lost 1.53%.
Heading into today, shares of the home improvement retailer had lost 22.94% over the past month, lagging the Retail-Wholesale sector's loss of 12.87% and the S&P 500's loss of 18.13% 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 $1.34 per share. This would mark year-over-year growth of 9.84%. Our most recent consensus estimate is calling for quarterly revenue of $17.95 billion, up 1.18% from the year-ago period.
LOW's full-year Zacks Consensus Estimates are calling for earnings of $6.26 per share and revenue of $73.44 billion. These results would represent year-over-year changes of +9.44% and +1.79%, respectively.
Investors should also note any recent changes to analyst estimates for LOW. These recent revisions tend to reflect the evolving nature of short-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. 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.
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. Over the past month, the Zacks Consensus EPS estimate has moved 4.83% lower. LOW currently has a Zacks Rank of #3 (Hold).
Looking at its valuation, LOW is holding a Forward P/E ratio of 13.23. For comparison, its industry has an average Forward P/E of 8.04, which means LOW is trading at a premium to the group.
Investors should also note that LOW has a PEG ratio of 0.9 right now. 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 was holding an average PEG ratio of 0.78 at yesterday's closing price.
The Building Products - Retail industry is part of the Retail-Wholesale sector. This group has a Zacks Industry Rank of 103, putting it in the top 41% 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.
To follow LOW in the coming trading sessions, be sure to utilize Zacks.com.