Lowe's (LOW) closed at $210.49 in the latest trading session, marking a -0.06% move from the prior day. This move was narrower than the S&P 500's daily loss of 0.23%. Elsewhere, the Dow lost 0.31%, while the tech-heavy Nasdaq lost 0.09%.
Coming into today, shares of the home improvement retailer had lost 5.54% in the past month. In that same time, the Retail-Wholesale sector lost 2.81%, while the S&P 500 lost 1.43%.
Investors will be hoping for strength from Lowe's as it approaches its next earnings release. In that report, analysts expect Lowe's to post earnings of $3.13 per share. This would mark a year-over-year decline of 4.28%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $21.21 billion, down 9.66% from the year-ago period.
LOW's full-year Zacks Consensus Estimates are calling for earnings of $13.44 per share and revenue of $87.91 billion. These results would represent year-over-year changes of -3.24% and -7.84%, respectively.
It is also important to note the recent changes to analyst estimates for Lowe's. Recent revisions tend to reflect the latest near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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.
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. Within the past 30 days, our consensus EPS projection has moved 0.32% higher. Lowe's is currently sporting a Zacks Rank of #3 (Hold).
Digging into valuation, Lowe's currently has a Forward P/E ratio of 15.67. This represents a premium compared to its industry's average Forward P/E of 11.18.
Meanwhile, LOW's PEG ratio is currently 1.37. 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 1.91 as of yesterday's close.
The Building Products - Retail industry is part of the Retail-Wholesale sector. This group has a Zacks Industry Rank of 58, putting it in the top 24% 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.
You can find more information on all of these metrics, and much more, on Zacks.com.
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