Here's Why Lowe's (LOW) Gained But Lagged the Market Today
The most recent trading session ended with Lowe's (LOW) standing at $226.93, reflecting a +0.67% shift from the previouse trading day's closing. The stock fell short of the S&P 500, which registered a gain of 0.96% for the day. At the same time, the Dow added 0.4%, and the tech-heavy Nasdaq gained 1.3%.
The home improvement retailer's stock has climbed by 2.27% in the past month, falling short of the Retail-Wholesale sector's gain of 4.23% and the S&P 500's gain of 3.69%.
Market participants will be closely following the financial results of Lowe's in its upcoming release. The company is expected to report EPS of $1.68, down 26.32% from the prior-year quarter. Meanwhile, the latest consensus estimate predicts the revenue to be $18.36 billion, indicating a 18.18% decrease compared to the same quarter of the previous year.
Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Lowe's. These revisions help to show the ever-changing nature of near-term business trends. Consequently, upward revisions in estimates express analysts' positivity towards the company's business operations and its ability to generate profits.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical rating system.
The Zacks Rank system, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 0.54% lower within the past month. At present, Lowe's boasts a Zacks Rank of #3 (Hold).
Investors should also note Lowe's's current valuation metrics, including its Forward P/E ratio of 17.48. This signifies a premium in comparison to the average Forward P/E of 14.07 for its industry.
It's also important to note that LOW currently trades at a PEG ratio of 1.62. 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 2.05 as of yesterday's close.
The Building Products - Retail industry is part of the Retail-Wholesale sector. With its current Zacks Industry Rank of 173, this industry ranks in the bottom 32% of all industries, numbering over 250.
The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.
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Lowe's Companies, Inc. (LOW) : Free Stock Analysis Report
