Lowe's (LOW) Stock Sinks As Market Gains: What You Should Know
In the latest trading session, Lowe's (LOW) closed at $219.49, marking a -0.34% move from the previous day. This change lagged the S&P 500's daily gain of 1.07%. At the same time, the Dow added 0.35%, and the tech-heavy Nasdaq gained 1.74%.
Heading into today, shares of the home improvement retailer had gained 4.27% over the past month, outpacing the Retail-Wholesale sector's gain of 2.02% and the S&P 500's gain of 2.93% in that time.
The upcoming earnings release of Lowe's will be of great interest to investors. The company is predicted to post an EPS of $1.68, indicating a 26.32% decline compared to the equivalent quarter last year. 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.
Investors should also note any recent changes to analyst estimates for Lowe's. These revisions help to show the ever-changing nature of near-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the company's business performance and profit potential.
Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational rating system.
The Zacks Rank system, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 0.39% lower. Lowe's is holding a Zacks Rank of #3 (Hold) right now.
In terms of valuation, Lowe's is presently being traded at a Forward P/E ratio of 17.03. This signifies a premium in comparison to the average Forward P/E of 13.83 for its industry.
One should further note that LOW currently holds a PEG ratio of 1.58. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. Building Products - Retail stocks are, on average, holding a PEG ratio of 2.08 based on yesterday's closing prices.
The Building Products - Retail industry is part of the Retail-Wholesale sector. With its current Zacks Industry Rank of 172, this industry ranks in the bottom 32% of all industries, numbering over 250.
The Zacks Industry Rank is ordered from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming trading sessions.
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
