Lowe's (LOW) Outpaces Stock Market Gains: What You Should Know
In the latest trading session, Lowe's (LOW) closed at $149.12, marking a +1.42% move from the previous day. This move outpaced the S&P 500's daily gain of 0.74%. At the same time, the Dow added 0.43%, and the tech-heavy Nasdaq gained 1.67%.
Coming into today, shares of the home improvement retailer had gained 11.58% in the past month. In that same time, the Retail-Wholesale sector gained 8.32%, while the S&P 500 gained 5.51%.
LOW will be looking to display strength as it nears its next earnings release. On that day, LOW is projected to report earnings of $2.58 per share, which would represent year-over-year growth of 20%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $23.32 billion, up 11.09% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $6.74 per share and revenue of $77 billion. These totals would mark changes of +17.83% and +6.73%, respectively, from last year.
Investors should also note any recent changes to analyst estimates for LOW. These revisions help to show the ever-changing nature of near-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. 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. The Zacks Consensus EPS estimate has moved 1.33% higher within the past month. LOW is currently a Zacks Rank #3 (Hold).
Looking at its valuation, LOW is holding a Forward P/E ratio of 21.83. For comparison, its industry has an average Forward P/E of 19.49, which means LOW is trading at a premium to the group.
Also, we should mention that LOW has a PEG ratio of 1.4. 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. The Building Products - Retail industry currently had an average PEG ratio of 2.3 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 58, which puts it in the top 23% 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.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.