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Lowe's (LOW) Stock Moves -0.92%: What You Should Know

In the latest trading session, Lowe's (LOW) closed at $93.42, marking a -0.92% move from the previous day. This change was narrower than the S&P 500's 1.91% loss on the day. At the same time, the Dow lost 2.02%, and the tech-heavy Nasdaq lost 2.26%.

Coming into today, shares of the home improvement retailer had gained 0.65% in the past month. In that same time, the Retail-Wholesale sector lost 2.54%, while the S&P 500 lost 2.51%.

Wall Street will be looking for positivity from LOW as it approaches its next earnings report date. This is expected to be February 27, 2019. On that day, LOW is projected to report earnings of $0.78 per share, which would represent year-over-year growth of 5.41%. Our most recent consensus estimate is calling for quarterly revenue of $15.74 billion, up 1.59% from the year-ago period.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $5.11 per share and revenue of $71.40 billion. These totals would mark changes of +16.4% and +4.06%, respectively, from last year.

Any recent changes to analyst estimates for LOW should also be noted by investors. Recent revisions tend to reflect the latest near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

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 1.08% lower. LOW currently has a Zacks Rank of #3 (Hold).

Digging into valuation, LOW currently has a Forward P/E ratio of 18.45. This represents a premium compared to its industry's average Forward P/E of 11.71.

Investors should also note that LOW has a PEG ratio of 1.3 right now. 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 1.08 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 165, which puts it in the bottom 36% 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.

To follow LOW in the coming trading sessions, be sure to utilize Zacks.com.

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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.


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

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