Lowe's (LOW) Surges 4.7%: Is This an Indication of Further Gains?

Lowe's LOW shares ended the last trading session 4.7% higher at $256.33. The jump came on an impressive volume with a higher-than-average number of shares changing hands in the session. This compares to the stock's 13.9% gain over the past four weeks.

Lowe’s strategic focus on the Pro customer segment, marked by enhanced product availability, timely delivery, and a broader assortment supported by a rewards program, underpins its long-term growth prospects. The company’s expansion plans, acquisition of ADG, and emphasis on delivering superior customer experiences strengthen its positioning as a leading omnichannel retailer. Additionally, ongoing investments in service enhancements, operational efficiency, and AI-driven shopping solutions are expected to bolster customer engagement and sustain demand momentum.

This home improvement retailer is expected to post quarterly earnings of $4.24 per share in its upcoming report, which represents a year-over-year change of +3.4%. Revenues are expected to be $24.01 billion, up 1.8% from the year-ago quarter.

Earnings and revenue growth expectations certainly give a good sense of the potential strength in a stock, but empirical research shows that trends in earnings estimate revisions are strongly correlated with near-term stock price movements.

For Lowe's, the consensus EPS estimate for the quarter has been revised 1.4% lower over the last 30 days to the current level. And a negative trend in earnings estimate revisions doesn't usually translate into price appreciation. So, make sure to keep an eye on LOW going forward to see if this recent jump can turn into more strength down the road.

The stock currently carries a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>

Lowe's is a member of the Zacks Retail - Home Furnishings industry. One other stock in the same industry, Home Depot HD, finished the last trading session 2.8% higher at $407.18. HD has returned 10.4% over the past month.

Home Depot's consensus EPS estimate for the upcoming report has changed -0.1% over the past month to $4.71. Compared to the company's year-ago EPS, this represents a change of +0.9%. Home Depot currently boasts a Zacks Rank of #3 (Hold).

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

This article originally published on Zacks Investment Research (zacks.com).

Zacks Investment Research