Lowe's (LOW) closed at $215.01 in the latest trading session, marking a -3.32% move from the prior day. The stock trailed the S&P 500, which registered a daily loss of 0.4%. Meanwhile, the Dow lost 0.98%, and the Nasdaq, a tech-heavy index, added 0.18%.
The home improvement retailer's shares have seen an increase of 2.92% over the last month, not keeping up with the Retail-Wholesale sector's gain of 4.14% and the S&P 500's gain of 4.97%.
Market participants will be closely following the financial results of Lowe's in its upcoming release. On that day, Lowe's is projected to report earnings of $4.25 per share, which would represent year-over-year growth of 3.66%. Meanwhile, the latest consensus estimate predicts the revenue to be $23.96 billion, indicating a 1.61% increase compared to the same quarter of the previous year.
For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $12.3 per share and a revenue of $84.29 billion, representing changes of +2.5% and +0.74%, respectively, from the prior year.
Any recent changes to analyst estimates for Lowe's should also be noted by investors. These latest adjustments often mirror the shifting dynamics of short-term business patterns. Hence, positive alterations in estimates signify analyst optimism regarding the business and profitability.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. 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, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed a 0.1% increase. Currently, Lowe's is carrying a Zacks Rank of #3 (Hold).
In terms of valuation, Lowe's is currently trading at a Forward P/E ratio of 18.08. This indicates a discount in contrast to its industry's Forward P/E of 19.98.
It is also worth noting that LOW currently has a PEG ratio of 2.1. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. As the market closed yesterday, the Retail - Home Furnishings industry was having an average PEG ratio of 2.33.
The Retail - Home Furnishings industry is part of the Retail-Wholesale sector. With its current Zacks Industry Rank of 94, this industry ranks in the top 39% 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.
Be sure to use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming trading sessions.
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Lowe's Companies, Inc. (LOW): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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