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Lowe's (LOW) closed the most recent trading day at $176.10, moving +0.79% from the previous trading session. This change outpaced the S&P 500's 0.07% loss on the day. At the same time, the Dow added 0.27%, and the tech-heavy Nasdaq gained 0.02%.
Heading into today, shares of the home improvement retailer had lost 10.54% over the past month, lagging the Retail-Wholesale sector's loss of 4.41% and the S&P 500's loss of 7.99% in that time.
Lowe's will be looking to display strength as it nears its next earnings release. The company is expected to report EPS of $4.68, up 10.12% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $28.33 billion, up 2.77% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $13.51 per share and revenue of $97.87 billion, which would represent changes of +12.21% and +1.69%, respectively, from the prior year.
It is also important to note the recent changes to analyst estimates for Lowe's. These revisions help to show the ever-changing nature of 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. 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. Over the past month, the Zacks Consensus EPS estimate has moved 0.12% higher. Lowe's is holding a Zacks Rank of #3 (Hold) right now.
Investors should also note Lowe's's current valuation metrics, including its Forward P/E ratio of 12.94. This valuation marks a premium compared to its industry's average Forward P/E of 7.91.
We can also see that LOW currently has a PEG ratio of 1.03. 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. Building Products - Retail stocks are, on average, holding a PEG ratio of 1.62 based on yesterday's closing prices.
The Building Products - Retail industry is part of the Retail-Wholesale sector. This group has a Zacks Industry Rank of 28, putting it in the top 12% 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.
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Lowe's Companies, Inc. (LOW) : Free Stock Analysis Report
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