Lowe's (LOW) ended the recent trading session at $278.28, demonstrating a +1.23% change from the preceding day's closing price. The stock's performance was behind the S&P 500's daily gain of 2.05%. Elsewhere, the Dow saw an upswing of 2.54%, while the tech-heavy Nasdaq appreciated by 2.27%.
Shares of the home improvement retailer witnessed a gain of 7.29% over the previous month, beating the performance of the Retail-Wholesale sector with its gain of 1.28%, and the S&P 500's loss of 1.49%.
The investment community will be closely monitoring the performance of Lowe's in its forthcoming earnings report. The company is scheduled to release its earnings 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%. Meanwhile, the latest consensus estimate predicts the revenue to be $20.35 billion, indicating a 9.71% increase compared to the same quarter of the previous year.
For the annual period, the Zacks Consensus Estimates anticipate earnings of $12.26 per share and a revenue of $86.06 billion, signifying shifts of +2.17% and +2.85%, respectively, from the last year.
Investors might also notice recent changes to analyst estimates for Lowe's. These revisions help to show the ever-changing nature of near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the business outlook.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical rating system.
The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has shifted 0.08% downward. Lowe's presently features a Zacks Rank of #4 (Sell).
In terms of valuation, Lowe's is presently being traded at a Forward P/E ratio of 21.15. This denotes no noticeable deviation relative to the industry average Forward P/E of 21.15.
One should further note that LOW currently holds a PEG ratio of 4.3. 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 average PEG ratio for the Retail - Home Furnishings industry stood at 2.03 at the close of the market yesterday.
The Retail - Home Furnishings industry is part of the Retail-Wholesale sector. At present, this industry carries a Zacks Industry Rank of 212, placing it within the bottom 14% of over 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.
You can find more information on all of these metrics, and much more, on Zacks.com.
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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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