Is Lowe's Companies (LOW) Outperforming Other Retail-Wholesale Stocks This Year?
Investors focused on the Retail-Wholesale space have likely heard of Lowe's Companies (LOW), but is the stock performing well in comparison to the rest of its sector peers? One simple way to answer this question is to take a look at the year-to-date performance of LOW and the rest of the Retail-Wholesale group's stocks.
Lowe's Companies is one of 224 companies in the Retail-Wholesale group. The Retail-Wholesale group currently sits at #5 within the Zacks Sector Rank. The Zacks Sector Rank considers 16 different sector groups. The average Zacks Rank of the individual stocks within the groups is measured, and the sectors are listed from best to worst.
The Zacks Rank is a proven model that highlights a variety of stocks with the right characteristics to outperform the market over the next one to three months. The system emphasizes earnings estimate revisions and favors companies with improving earnings outlooks. LOW is currently sporting a Zacks Rank of #2 (Buy).
Over the past 90 days, the Zacks Consensus Estimate for LOW's full-year earnings has moved 1.06% higher. This shows that analyst sentiment has improved and the company's earnings outlook is stronger.
Based on the most recent data, LOW has returned 21.18% so far this year. In comparison, Retail-Wholesale companies have returned an average of 20.01%. As we can see, Lowe's Companies is performing better than its sector in the calendar year.
Looking more specifically, LOW belongs to the Building Products - Retail industry, which includes 11 individual stocks and currently sits at #178 in the Zacks Industry Rank. On average, this group has gained an average of 28.01% so far this year, meaning that LOW is slightly underperforming its industry in terms of year-to-date returns.
Going forward, investors interested in Retail-Wholesale stocks should continue to pay close attention to LOW as it looks to continue its solid performance.
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.
