Here's Why Lowe's (LOW) Fell More Than Broader Market

Lowe's (LOW) ended the recent trading session at $269.99, demonstrating a -1.44% change from the preceding day's closing price. This change lagged the S&P 500's 0.01% loss on the day. Elsewhere, the Dow saw an upswing of 0.03%, while the tech-heavy Nasdaq appreciated by 0.17%.

Shares of the home improvement retailer have appreciated by 12.65% over the course of the past month, outperforming the Retail-Wholesale sector's gain of 4.91%, and the S&P 500's gain of 0.78%.

Investors will be eagerly watching for the performance of Lowe's in its upcoming earnings disclosure. The company's earnings report is set to be unveiled on February 25, 2026. It is anticipated that the company will report an EPS of $1.95, marking a 1.04% rise compared to the same quarter of the previous year. Our most recent consensus estimate is calling for quarterly revenue of $20.35 billion, up 9.71% from the year-ago period.

For the annual period, the Zacks Consensus Estimates anticipate earnings of $12.26 per share and a revenue of $86.06 billion, signifying shifts of +2.17% and +2.85%, respectively, from the last year.

Investors should also note any recent changes to analyst estimates for Lowe's. These revisions typically reflect the latest short-term business trends, which can change frequently. Therefore, positive revisions in estimates convey analysts' confidence in the business performance and profit potential.

Based on our research, we believe these estimate revisions are directly related to near-term stock moves. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable rating system.

The Zacks Rank system, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. Over the past month, there's been no change in the Zacks Consensus EPS estimate. At present, Lowe's boasts a Zacks Rank of #3 (Hold).

Investors should also note Lowe's's current valuation metrics, including its Forward P/E ratio of 22.35. This signifies a discount in comparison to the average Forward P/E of 23.96 for its industry.

We can also see that LOW currently has a PEG ratio of 4.54. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. As the market closed yesterday, the Retail - Home Furnishings industry was having an average PEG ratio of 2.12.

The Retail - Home Furnishings industry is part of the Retail-Wholesale sector. Currently, this industry holds a Zacks Industry Rank of 182, positioning it in the bottom 26% 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.

Quantum Computing Stocks Set To Soar

Artificial intelligence has already reshaped the investment landscape, and its convergence with quantum computing could lead to the most significant wealth-building opportunities of our time.

Today, you have a chance to position your portfolio at the forefront of this technological revolution. In our urgent special report, Beyond AI: The Quantum Leap in Computing Power, you'll discover the little-known stocks we believe will win the quantum computing race and deliver massive gains to early investors.

Access the Report Free Now >>

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

Lowe's Companies, Inc. (LOW) : Free Stock Analysis Report

This article originally published on Zacks Investment Research (zacks.com).

Zacks Investment Research

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Tags

More Related Articles

Info icon

This data feed is not available at this time.

Data is currently not available

Sign up for the TradeTalks newsletter to receive your weekly dose of trading news, trends and education. Delivered Wednesdays.