Markets
LOW

Lowe's (LOW) Stock Sinks As Market Gains: What You Should Know

A generic image of a pen on a chart
Credit: Shutterstock photo

In the latest trading session, Lowe's (LOW) closed at $117.03, marking a -0.13% move from the previous day. This move lagged the S&P 500's daily gain of 0.05%. Elsewhere, the Dow gained 0.26%, while the tech-heavy Nasdaq added 0.3%.

Prior to today's trading, shares of the home improvement retailer had gained 15.02% over the past month. This has outpaced the Retail-Wholesale sector's gain of 4.01% and the S&P 500's gain of 3.08% in that time.

Wall Street will be looking for positivity from LOW as it approaches its nex t earnings report date. The company is expected to report EPS of $1.36, up 14.29% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $17.75 billion, up 2.27% from the year-ago period.

LOW's full-year Zacks Consensus Estimates are calling for earnings of $6.07 per share and revenue of $72.48 billion. These results would represent year-over-year changes of +18.09% and +1.64%, respectively.

Investors might also notice 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.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.

The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 0.06% higher within the past month. LOW is currently a Zacks Rank #3 (Hold).

Valuation is also important, so investors should note that LOW has a Forward P/E ratio of 19.32 right now. For comparison, its industry has an average Forward P/E of 13.58, which means LOW is trading at a premium to the group.

Investors should also note that LOW has a PEG ratio of 1.36 right now. 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. LOW's industry had an average PEG ratio of 1.36 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 169, which puts it in the bottom 34% 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.

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

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

To read this article on Zacks.com click here.

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.

In This Story

LOW

Other Topics

Investing Stocks

Latest Markets Videos

    Zacks

    Zacks is the leading investment research firm focusing on stock research, analysis and recommendations. In 1978, our founder discovered the power of earnings estimate revisions to enable profitable investment decisions. Today, that discovery is still the heart of the Zacks Rank. A wealth of resources for individual investors is available at www.zacks.com.

    Learn More