Lowe's (LOW) Stock Slides as Market Rises: Facts to Know Before You Trade
Lowe's (LOW) closed the most recent trading day at $220.39, moving -0.59% from the previous trading session. The stock's performance was behind the S&P 500's daily gain of 0.06%. On the other hand, the Dow registered a gain of 0.13%, and the technology-centric Nasdaq increased by 0.24%.
Shares of the home improvement retailer have appreciated by 0.67% over the course of the past month, underperforming the Retail-Wholesale sector's gain of 8.04% and the S&P 500's gain of 6.45%.
Analysts and investors alike will be keeping a close eye on the performance of Lowe's in its upcoming earnings disclosure. On that day, Lowe's is projected to report earnings of $1.68 per share, which would represent a year-over-year decline of 26.32%. Simultaneously, our latest consensus estimate expects the revenue to be $18.36 billion, showing a 18.18% drop compared to the year-ago quarter.
Furthermore, it would be beneficial for investors to monitor any recent shifts in analyst projections for Lowe's. These revisions help to show the ever-changing nature of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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, 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. Over the past month, there's been a 0.65% fall in the Zacks Consensus EPS estimate. Lowe's is currently sporting a Zacks Rank of #3 (Hold).
With respect to valuation, Lowe's is currently being traded at a Forward P/E ratio of 17.19. This signifies a premium in comparison to the average Forward P/E of 13.98 for its industry.
One should further note that LOW currently holds a PEG ratio of 1.59. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. Building Products - Retail stocks are, on average, holding a PEG ratio of 2.09 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 115, which puts it in the top 46% 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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Lowe's Companies, Inc. (LOW) : Free Stock Analysis Report
