In the latest trading session, Lowe's (LOW) closed at $223.63, marking a +1.08% move from the previous day. The stock's change was more than the S&P 500's daily gain of 0.52%. Meanwhile, the Dow experienced a rise of 1%, and the technology-dominated Nasdaq saw an increase of 0.52%.
Shares of the home improvement retailer witnessed a loss of 1.65% over the previous month, trailing the performance of the Retail-Wholesale sector with its gain of 2.37%, and the S&P 500's gain of 5.95%.
Analysts and investors alike will be keeping a close eye on the performance of Lowe's in its upcoming earnings disclosure. In that report, analysts expect Lowe's to post earnings of $4.25 per share. This would mark year-over-year growth of 3.66%. Our most recent consensus estimate is calling for quarterly revenue of $23.96 billion, up 1.59% from the year-ago period.
For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $12.29 per share and a revenue of $84.29 billion, representing changes of +2.42% and +0.74%, respectively, from the prior 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.
Our research shows that these estimate changes are directly correlated with near-term stock prices. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational rating system.
The Zacks Rank system, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 0.01% higher. As of now, Lowe's holds a Zacks Rank of #3 (Hold).
Looking at valuation, Lowe's is presently trading at a Forward P/E ratio of 18. This indicates a discount in contrast to its industry's Forward P/E of 18.98.
Investors should also note that LOW has a PEG ratio of 2.09 right now. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. By the end of yesterday's trading, the Retail - Home Furnishings industry had an average PEG ratio of 2.23.
The Retail - Home Furnishings industry is part of the Retail-Wholesale sector. This industry currently has a Zacks Industry Rank of 152, which puts it in the bottom 39% of all 250+ industries.
The Zacks Industry Rank is ordered from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. 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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