Lowe's (LOW) Gains But Lags Market: What You Should Know
Lowe's (LOW) closed at $141.22 in the latest trading session, marking a +0.83% move from the prior day. This change lagged the S&P 500's 0.91% gain on the day. Elsewhere, the Dow gained 0.85%, while the tech-heavy Nasdaq added 0.59%.
Heading into today, shares of the home improvement retailer had gained 6.32% over the past month, lagging the Retail-Wholesale sector's gain of 11.98% and outpacing the S&P 500's gain of 5.26% in that time.
Wall Street will be looking for positivity from LOW as it approaches its next earnings report date. On that day, LOW is projected to report earnings of $2.50 per share, which would represent year-over-year growth of 16.28%. Meanwhile, our latest consensus estimate is calling for revenue of $22.91 billion, up 9.15% from the prior-year quarter.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $6.66 per share and revenue of $76.54 billion. These totals would mark changes of +16.43% and +6.08%, respectively, from last year.
Investors should also note any 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. 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 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 has moved 0.59% higher. LOW is currently sporting a Zacks Rank of #2 (Buy).
In terms of valuation, LOW is currently trading at a Forward P/E ratio of 21.05. This valuation marks a premium compared to its industry's average Forward P/E of 17.79.
Investors should also note that LOW has a PEG ratio of 1.31 right now. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. LOW's industry had an average PEG ratio of 1.71 as of yesterday's close.
The Building Products - Retail industry is part of the Retail-Wholesale sector. This industry currently has a Zacks Industry Rank of 14, which puts it in the top 6% 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.
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