Lowe's (LOW) closed at $271.47 in the latest trading session, marking a +1.59% move from the prior day. The stock's performance was ahead of the S&P 500's daily gain of 0.16%. Elsewhere, the Dow gained 0.17%, while the tech-heavy Nasdaq added 0.26%.
Shares of the home improvement retailer have appreciated by 8.06% over the course of the past month, outperforming the Retail-Wholesale sector's gain of 5.12%, and the S&P 500's gain of 1.89%.
Analysts and investors alike will be keeping a close eye on the performance of Lowe's in its upcoming earnings disclosure. The company's earnings report is set to go public on February 25, 2026. In that report, analysts expect Lowe's to post earnings of $1.95 per share. This would mark year-over-year growth of 1.04%. At the same time, our most recent consensus estimate is projecting a revenue of $20.35 billion, reflecting a 9.71% rise from the equivalent quarter last year.
In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $12.26 per share and a revenue of $86.06 billion, indicating changes of +2.17% and +2.85%, respectively, from the former year.
Investors might also notice recent changes to analyst estimates for Lowe's. Recent revisions tend to reflect the latest near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the past month, the Zacks Consensus EPS estimate has remained steady. 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 21.8. Its industry sports an average Forward P/E of 22.9, so one might conclude that Lowe's is trading at a discount comparatively.
Meanwhile, LOW's PEG ratio is currently 4.43. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. The Retail - Home Furnishings industry currently had an average PEG ratio of 2.26 as of yesterday's close.
The Retail - Home Furnishings industry is part of the Retail-Wholesale sector. With its current Zacks Industry Rank of 167, this industry ranks in the bottom 32% of all industries, numbering over 250.
The Zacks Industry Rank gauges the strength of our 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.
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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