Lowe's (LOW) Stock Sinks As Market Gains: What You Should Know
In the latest trading session, Lowe's (LOW) closed at $199.72, marking a -0.46% move from the previous day. This change lagged the S&P 500's daily gain of 0.33%.
Heading into today, shares of the home improvement retailer had gained 15.72% over the past month, outpacing the Retail-Wholesale sector's gain of 1.31% and the S&P 500's gain of 4.77% in that time.
Wall Street will be looking for positivity from LOW as it approaches its next earnings report date. The company is expected to report EPS of $2.46, up 38.98% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $22.95 billion, up 16.65% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $9.74 per share and revenue of $86.93 billion, which would represent changes of +9.93% and -2.97%, respectively, from the prior 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. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.
The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 0.4% higher within the past month. LOW is currently sporting a Zacks Rank of #3 (Hold).
Looking at its valuation, LOW is holding a Forward P/E ratio of 20.39. For comparison, its industry has an average Forward P/E of 17.35, which means LOW is trading at a premium to the group.
Meanwhile, LOW's PEG ratio is currently 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. Building Products - Retail stocks are, on average, holding a PEG ratio of 1.62 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 95, which puts it in the top 38% 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.
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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