In the latest trading session, Lowe's (LOW) closed at $244.87, marking a +2.09% move from the previous day. This change outpaced the S&P 500's 1.14% gain on the day. Elsewhere, the Dow gained 1.1%, while the tech-heavy Nasdaq added 1.39%.
Shares of the home improvement retailer have appreciated by 7.85% over the course of the past month, outperforming the Retail-Wholesale sector's gain of 1.54%, and the S&P 500's gain of 2%.
Market participants will be closely following the financial results of Lowe's in its upcoming release. The company plans to announce its earnings on August 20, 2025. It is anticipated that the company will report an EPS of $4.24, marking a 3.41% rise compared to the same quarter of the previous year. In the meantime, our current consensus estimate forecasts the revenue to be $24.02 billion, indicating a 1.85% growth compared to the corresponding quarter of the prior year.
For the full year, the Zacks Consensus Estimates project earnings of $12.29 per share and a revenue of $84.31 billion, demonstrating changes of +2.42% and +0.76%, respectively, from the preceding year.
Investors should also pay attention to any latest changes in analyst estimates for Lowe's. Recent revisions tend to reflect the latest near-term business trends. As such, positive estimate revisions reflect analyst optimism about the business and profitability.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable rating system.
The Zacks Rank system, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 0.05% higher within the past month. Currently, Lowe's is carrying a Zacks Rank of #3 (Hold).
Looking at valuation, Lowe's is presently trading at a Forward P/E ratio of 19.51. This signifies a discount in comparison to the average Forward P/E of 19.83 for its industry.
Investors should also note that LOW has a PEG ratio of 2.27 right now. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. The Retail - Home Furnishings industry currently had an average PEG ratio of 2.75 as of yesterday's close.
The Retail - Home Furnishings industry is part of the Retail-Wholesale sector. Currently, this industry holds a Zacks Industry Rank of 159, positioning it in the bottom 36% of all 250+ industries.
The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these groups. 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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