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Why Lowe's (LOW) is a Top Value Stock for the Long-Term

Zacks Equity Research
·2-min read

It doesn't matter your age or experience: taking full advantage of the stock market and investing with confidence are common goals for all investors.

Achieving those goals is made easier with the Zacks Style Scores, a unique set of guidelines that rates stocks based on popular investing methodologies, namely value, growth, and momentum. The Style Scores can help you narrow down which stocks are better for your portfolio and which ones can beat the market over the long-term.

Why Investors Should Pay Attention to This Value Stock

Finding good stocks at good prices, and discovering which companies are trading under their true value, are what value investors like to focus on. So, the Value Style Score takes into account ratios like P/E, PEG, Price/Sales, and Price/Cash Flow to highlight the most attractive and discounted stocks.

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Lowe's (LOW)

Lowe’s Companies, Inc. (LOW) has evolved as one of the world’s leading home improvement retailer, offering services to homeowners, renters and commercial business customers. The company has been enhancing experience of its pro customers by upgrading pro-focused brands and revamping pro-service business website, LowesForPros.com.

LOW sits at a Zacks Rank #3 (Hold), holds a Value Style Score of B, and has a VGM Score of A. Compared to the Building Products - Retail industry's P/E of 9.2X, shares of Lowe's are trading at a forward P/E of 13.7X. LOW also has a PEG Ratio of 1.1, a Price/Cash Flow ratio of 12.1X, and a Price/Sales ratio of 1.3X.

A company's earnings performance is important for value investors as well. For fiscal 2023, seven analysts revised their earnings estimate higher in the last 60 days for LOW, while the Zacks Consensus Estimate has increased $0.12 to $13.49 per share. LOW also holds an average earnings surprise of 8.9%.

LOW should be on investors' short lists because of its impressive earnings and valuation fundamentals, a good Zacks Rank, and strong Value and VGM Style Scores.


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Lowe's Companies, Inc. (LOW) : Free Stock Analysis Report
 
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