In the latest trading session, Lowe's (LOW) closed at $234.01, marking a +0.33% move from the previous day. This change lagged the S&P 500's 0.38% gain on the day. Meanwhile, the Dow experienced a drop of 0.03%, and the technology-dominated Nasdaq saw an increase of 0.87%.
The home improvement retailer's stock has dropped by 5.25% in the past month, exceeding the Retail-Wholesale sector's loss of 7.71% and the S&P 500's loss of 5.59%.
Analysts and investors alike will be keeping a close eye on the performance of Lowe's in its upcoming earnings disclosure. In that report, analysts expect Lowe's to post earnings of $2.89 per share. This would mark a year-over-year decline of 5.56%. Meanwhile, our latest consensus estimate is calling for revenue of $20.97 billion, down 1.86% from the prior-year quarter.
LOW's full-year Zacks Consensus Estimates are calling for earnings of $12.28 per share and revenue of $84.32 billion. These results would represent year-over-year changes of +2.33% and +0.77%, respectively.
It is also important to note the recent changes to analyst estimates for Lowe's. Such recent modifications usually signify the changing landscape of near-term business trends. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the company's business health and profitability.
Our research suggests that these changes in estimates have a direct relationship with upcoming 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. The Zacks Consensus EPS estimate has moved 0.25% lower within the past month. 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. This signifies a premium in comparison to the average Forward P/E of 18.4 for its industry.
We can additionally observe that LOW currently boasts a PEG ratio of 2.23. 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 2.03.
The Retail - Home Furnishings industry is part of the Retail-Wholesale sector. This industry, currently bearing a Zacks Industry Rank of 169, finds itself in the bottom 33% echelons of all 250+ industries.
The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Ensure to harness Zacks.com to stay updated with all these stock-shifting metrics, among others, in the next 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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