In the latest trading session, Lowe's (LOW) closed at $187.81, marking a -1.39% move from the previous day. This change was narrower than the S&P 500's daily loss of 1.51%. At the same time, the Dow lost 1.71%, and the tech-heavy Nasdaq lost 0.02%.
Heading into today, shares of the home improvement retailer had lost 2.71% over the past month, outpacing the Retail-Wholesale sector's loss of 8.68% and the S&P 500's loss of 9.52% in that time.
Investors will be hoping for strength from Lowe's as it approaches its next earnings release. On that day, Lowe's is projected to report earnings of $3.10 per share, which would represent year-over-year growth of 13.55%. Our most recent consensus estimate is calling for quarterly revenue of $23.08 billion, up 0.72% from the year-ago period.
LOW's full-year Zacks Consensus Estimates are calling for earnings of $13.52 per share and revenue of $96.89 billion. These results would represent year-over-year changes of +12.29% and +0.66%, respectively.
Investors should also note any recent changes to analyst estimates for Lowe's. 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.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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 0.04% higher. Lowe's is currently a Zacks Rank #3 (Hold).
In terms of valuation, Lowe's is currently trading at a Forward P/E ratio of 14.09. This represents a premium compared to its industry's average Forward P/E of 8.14.
Investors should also note that LOW has a PEG ratio of 1.08 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. Building Products - Retail stocks are, on average, holding a PEG ratio of 1.49 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 96, putting it in the top 39% 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.
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.
Zacks Investment Research