The most recent trading session ended with Lowe's (LOW) standing at $220.16, reflecting a -0.02% shift from the previouse trading day's closing. This move was narrower than the S&P 500's daily loss of 0.07%.
Heading into today, shares of the home improvement retailer had gained 2.21% over the past month, lagging the Retail-Wholesale sector's gain of 4.94% and the S&P 500's gain of 3.98% in that time.
The investment community will be paying close attention to the earnings performance of Lowe's in its upcoming release. The company is predicted to post an EPS of $1.68, indicating a 26.32% decline compared to the equivalent quarter last year. Meanwhile, the latest consensus estimate predicts the revenue to be $18.45 billion, indicating a 17.81% decrease compared to the same quarter of the previous year.
For the full year, the Zacks Consensus Estimates project earnings of $13.02 per share and a revenue of $86.13 billion, demonstrating changes of -6.26% and -11.26%, respectively, from the preceding year.
Furthermore, it would be beneficial for investors to monitor any recent shifts in analyst projections for Lowe's. These latest adjustments often mirror the shifting dynamics of short-term business patterns. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. 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, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Over the past month, there's been a 0.02% fall in the Zacks Consensus EPS estimate. Lowe's is currently sporting a Zacks Rank of #4 (Sell).
Valuation is also important, so investors should note that Lowe's has a Forward P/E ratio of 16.92 right now. This signifies a premium in comparison to the average Forward P/E of 13.05 for its industry.
We can also see that LOW currently has a PEG ratio of 1.56. 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. As the market closed yesterday, the Building Products - Retail industry was having an average PEG ratio of 2.11.
The Building Products - Retail industry is part of the Retail-Wholesale sector. Currently, this industry holds a Zacks Industry Rank of 172, positioning it in the bottom 32% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our 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.
Zacks Reveals ChatGPT "Sleeper" Stock
One little-known company is at the heart of an especially brilliant Artificial Intelligence sector. By 2030, the AI industry is predicted to have an internet and iPhone-scale economic impact of $15.7 Trillion.
As a service to readers, Zacks is providing a bonus report that names and explains this explosive growth stock and 4 other "must buys." Plus more.Download Free ChatGPT Stock Report Right Now >>