Lowe's (LOW) ended the recent trading session at $281.16, demonstrating a -2.17% change from the preceding day's closing price. This change lagged the S&P 500's 0.1% gain on the day. Elsewhere, the Dow gained 0.07%, while the tech-heavy Nasdaq added 0.14%.
Prior to today's trading, shares of the home improvement retailer had gained 3.55% outpaced the Retail-Wholesale sector's loss of 5.35% and the S&P 500's loss of 1.43%.
The investment community will be paying close attention to the earnings performance of Lowe's in its upcoming release. The company is slated to reveal its earnings on February 25, 2026. The company's upcoming EPS is projected at $1.95, signifying a 1.04% increase compared to the same quarter of the previous year. In the meantime, our current consensus estimate forecasts the revenue to be $20.36 billion, indicating a 9.76% growth compared to the corresponding quarter of the prior 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.
It's also important for investors to be aware of any recent modifications to analyst estimates for Lowe's. Such recent modifications usually signify the changing landscape of near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.
The Zacks Rank system, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Over the past month, there's been a 0.26% rise in the Zacks Consensus EPS estimate. Lowe's is currently sporting a Zacks Rank of #4 (Sell).
From a valuation perspective, Lowe's is currently exchanging hands at a Forward P/E ratio of 22.05. This denotes no noticeable deviation relative to the industry average Forward P/E of 22.05.
We can also see that LOW currently has a PEG ratio of 4.48. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. By the end of yesterday's trading, the Retail - Home Furnishings industry had an average PEG ratio of 2.12.
The Retail - Home Furnishings industry is part of the Retail-Wholesale sector. Currently, this industry holds a Zacks Industry Rank of 168, positioning it in the bottom 32% 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.
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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