Lowe's (LOW) closed at $234.35 in the latest trading session, marking a -1.43% move from the prior day. This change lagged the S&P 500's daily gain of 0.37%. Meanwhile, the Dow gained 0.48%, and the Nasdaq, a tech-heavy index, added 0.65%.
The home improvement retailer's stock has dropped by 0.89% in the past month, falling short of the Retail-Wholesale sector's gain of 1.74% and the S&P 500's gain of 0.95%.
The upcoming earnings release of Lowe's will be of great interest to investors. The company's earnings report is expected on November 19, 2025. It is anticipated that the company will report an EPS of $3, marking a 3.81% rise compared to the same quarter of the previous year. Alongside, our most recent consensus estimate is anticipating revenue of $20.96 billion, indicating a 3.9% upward movement from the same quarter last year.
For the full year, the Zacks Consensus Estimates project earnings of $12.32 per share and a revenue of $85.17 billion, demonstrating changes of +2.67% and +1.73%, respectively, from the preceding year.
Investors should also note any recent changes to analyst estimates for Lowe's. These recent revisions tend to reflect the evolving nature of short-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the business outlook.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable 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 remained unchanged. Lowe's is holding a Zacks Rank of #3 (Hold) right now.
Digging into valuation, Lowe's currently has a Forward P/E ratio of 19.3. This expresses a discount compared to the average Forward P/E of 22.68 of its industry.
Meanwhile, LOW's PEG ratio is currently 2.2. 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 2.02 as of yesterday's close.
The Retail - Home Furnishings industry is part of the Retail-Wholesale sector. This industry, currently bearing a Zacks Industry Rank of 174, finds itself in the bottom 30% echelons of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
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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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