Lowe's (LOW) ended the recent trading session at $237.46, demonstrating a +1.56% change from the preceding day's closing price. The stock outpaced the S&P 500's daily loss of 0.49%. Elsewhere, the Dow saw a downswing of 0.14%, while the tech-heavy Nasdaq depreciated by 0.65%.
The home improvement retailer's shares have seen an increase of 3.92% over the last month, surpassing the Retail-Wholesale sector's loss of 1.34% and the S&P 500's gain of 0.96%.
The investment community will be paying close attention to the earnings performance of Lowe's in its upcoming release. The company is slated to reveal its earnings on August 20, 2025. The company is expected to report EPS of $4.25, up 3.66% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $24.02 billion, up 1.85% from the prior-year quarter.
For the annual period, the Zacks Consensus Estimates anticipate earnings of $12.3 per share and a revenue of $84.38 billion, signifying shifts of +2.5% and +0.84%, respectively, from the last year.
Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Lowe's. These revisions typically reflect the latest short-term business trends, which can change frequently. Hence, positive alterations in estimates signify analyst optimism regarding the business and profitability.
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, 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. Within the past 30 days, our consensus EPS projection has moved 0.1% higher. Lowe's presently features a Zacks Rank of #3 (Hold).
Looking at valuation, Lowe's is presently trading at a Forward P/E ratio of 19.01. This valuation marks a discount compared to its industry average Forward P/E of 20.51.
Also, we should mention that LOW has a PEG ratio of 2.21. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. By the end of yesterday's trading, the Retail - Home Furnishings industry had an average PEG ratio of 2.73.
The Retail - Home Furnishings industry is part of the Retail-Wholesale sector. With its current Zacks Industry Rank of 175, this industry ranks in the bottom 30% of all industries, numbering over 250.
The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in the upcoming 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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