Lowe's (LOW) Stock Sinks As Market Gains: What You Should Know
Lowe's (LOW) closed at $192.74 in the latest trading session, marking a -0.79% move from the prior day. This change lagged the S&P 500's daily gain of 0.12%.
Coming into today, shares of the home improvement retailer had gained 3.41% in the past month. In that same time, the Retail-Wholesale sector gained 1.33%, while the S&P 500 gained 3%.
Wall Street will be looking for positivity from LOW as it approaches its next earnings report date. In that report, analysts expect LOW to post earnings of $3.87 per share. This would mark year-over-year growth of 3.2%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $26.87 billion, down 1.59% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $10.82 per share and revenue of $91.63 billion. These totals would mark changes of +22.12% and +2.26%, respectively, from last year.
It is also important to note the recent changes to analyst estimates for LOW. 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.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 0.54% higher. LOW currently has a Zacks Rank of #3 (Hold).
In terms of valuation, LOW is currently trading at a Forward P/E ratio of 17.97. This represents a premium compared to its industry's average Forward P/E of 15.29.
It is also worth noting that LOW currently has a PEG ratio of 1.31. 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. Building Products - Retail stocks are, on average, holding a PEG ratio of 1.31 based on yesterday's closing prices.
The Building Products - Retail industry is part of the Retail-Wholesale sector. This industry currently has a Zacks Industry Rank of 18, which puts it in the top 8% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual 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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
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