Lowe's (LOW) ended the recent trading session at $224.99, demonstrating a -1.45% change from the preceding day's closing price. The stock's performance was behind the S&P 500's daily loss of 0.79%. At the same time, the Dow lost 0.94%, and the tech-heavy Nasdaq lost 0.92%.
The home improvement retailer's shares have seen an increase of 1.35% over the last month, not keeping up with the Retail-Wholesale sector's gain of 2.47% and the S&P 500's gain of 5.22%.
The upcoming earnings release of Lowe's will be of great interest to investors. It is anticipated that the company will report an EPS of $4.25, marking a 3.66% rise compared to the same quarter of the previous year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $23.96 billion, up 1.61% 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.
It's also important for investors to be aware of any recent modifications to analyst estimates for Lowe's. Recent revisions tend to reflect the latest near-term business trends. As such, positive estimate revisions reflect analyst optimism about the business and profitability.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. 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, 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. Within the past 30 days, our consensus EPS projection has moved 0.01% lower. Lowe's currently has a Zacks Rank of #3 (Hold).
Looking at its valuation, Lowe's is holding a Forward P/E ratio of 18.58. This signifies a discount in comparison to the average Forward P/E of 20.3 for its industry.
It is also worth noting that LOW currently has a PEG ratio of 2.16. 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. The average PEG ratio for the Retail - Home Furnishings industry stood at 2.36 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 90, placing it within the top 37% of over 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.
Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding 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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