In the latest market close, Lowe's (LOW) reached $217.76, with a -0.6% movement compared to the previous day. The stock trailed the S&P 500, which registered a daily gain of 1.67%. Elsewhere, the Dow saw an upswing of 1.07%, while the tech-heavy Nasdaq appreciated by 2.5%.
The home improvement retailer's shares have seen a decrease of 5.04% over the last month, not keeping up with the Retail-Wholesale sector's loss of 4.21% and outstripping the S&P 500's loss of 6.57%.
Analysts and investors alike will be keeping a close eye on the performance of Lowe's in its upcoming earnings disclosure. It is anticipated that the company will report an EPS of $2.89, marking a 5.56% fall compared to the same quarter of the previous year. In the meantime, our current consensus estimate forecasts the revenue to be $20.97 billion, indicating a 1.86% decline compared to the corresponding quarter of the prior year.
For the full year, the Zacks Consensus Estimates are projecting earnings of $12.25 per share and revenue of $84.35 billion, which would represent changes of +2.08% and +0.81%, respectively, from the prior year.
Investors should also take note of any recent adjustments to analyst estimates for Lowe's. These latest adjustments often mirror the shifting dynamics of short-term business patterns. Consequently, upward revisions in estimates express analysts' positivity towards the company's business operations and its ability to generate profits.
Our research shows that these estimate changes are directly correlated with near-term stock prices. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable 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 0.27% lower within the past month. At present, Lowe's boasts a Zacks Rank of #3 (Hold).
In terms of valuation, Lowe's is presently being traded at a Forward P/E ratio of 17.89. This signifies no noticeable deviation in comparison to the average Forward P/E of 17.89 for its industry.
Investors should also note that LOW has a PEG ratio of 2.1 right now. 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 2.16 as of yesterday's close.
The Retail - Home Furnishings industry is part of the Retail-Wholesale sector. Currently, this industry holds a Zacks Industry Rank of 197, positioning it in the bottom 21% of all 250+ industries.
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.
Be sure to follow all of these stock-moving metrics, and many 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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