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Is Lowe's (LOW) a Great Value Stock Right Now?

Zacks Equity Research

Here at Zacks, our focus is on the proven Zacks Rank system, which emphasizes earnings estimates and estimate revisions to find great stocks. Nevertheless, we are always paying attention to the latest value, growth, and momentum trends to underscore strong picks.

Of these, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors use tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.

On top of the Zacks Rank, investors can also look at our innovative Style Scores system to find stocks with specific traits. For example, value investors will want to focus on the "Value" category. Stocks with high Zacks Ranks and "A" grades for Value will be some of the highest-quality value stocks on the market today.

One stock to keep an eye on is Lowe's (LOW). LOW is currently sporting a Zacks Rank of #2 (Buy), as well as a Value grade of A. The stock holds a P/E ratio of 19.17, while its industry has an average P/E of 20.78. LOW's Forward P/E has been as high as 21.38 and as low as 9.70, with a median of 17.45, all within the past year.

Investors should also note that LOW holds a PEG ratio of 1.26. This figure is similar to the commonly-used P/E ratio, with the PEG ratio also factoring in a company's expected earnings growth rate. LOW's industry has an average PEG of 1.61 right now. Over the last 12 months, LOW's PEG has been as high as 1.52 and as low as 0.68, with a median of 1.25.

Investors should also recognize that LOW has a P/B ratio of 53.78. The P/B ratio is used to compare a stock's market value with its book value, which is defined as total assets minus total liabilities. This stock's P/B looks attractive against its industry's average P/B of 107.33. LOW's P/B has been as high as 53.78 and as low as 22.23, with a median of 34.80, over the past year.

These are only a few of the key metrics included in Lowe's's strong Value grade, but they help show that the stock is likely undervalued right now. When factoring in the strength of its earnings outlook, LOW looks like an impressive value stock at the moment.


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