Yahoo Finance Is Lowe's Companies (LOW) Stock Undervalued Right Now?
Here at Zacks, we focus on our proven ranking system, which places an emphasis on earnings estimates and estimate revisions, to find winning stocks. But we also understand that investors develop their own strategies, so we are constantly looking at the latest trends in value, growth, and momentum to find strong companies for our readers.
Of these, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors use a variety of methods, including tried-and-true valuation metrics, to find these stocks.
Zacks has developed the innovative Style Scores system to highlight stocks with specific traits. For example, value investors will be interested in stocks with great grades in the "Value" category. When paired with a high Zacks Rank, "A" grades in the Value category are among the strongest value stocks on the market today.
One company to watch right now is Lowe's Companies (LOW). LOW is currently sporting a Zacks Rank of #2 (Buy), as well as an A grade for Value. The stock holds a P/E ratio of 18.73, while its industry has an average P/E of 20.15. Over the last 12 months, LOW's Forward P/E has been as high as 21.05 and as low as 12.90, with a median of 16.31.
Investors should also note that LOW holds a PEG ratio of 1.69. 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. LOW's PEG compares to its industry's average PEG of 2.05. Within the past year, LOW's PEG has been as high as 1.90 and as low as 1.13, with a median of 1.42.
Finally, we should also recognize that LOW has a P/CF ratio of 14.01. This metric takes into account a company's operating cash flow and can be used to find stocks that are undervalued based on their solid cash outlook. LOW's current P/CF looks attractive when compared to its industry's average P/CF of 14.98. LOW's P/CF has been as high as 17.36 and as low as 12.68, with a median of 15.30, all within the past year.
These are only a few of the key metrics included in Lowe's Companies's strong Value grade, but they help show that the stock is likely undervalued right now. When factoring in the strength of its earnings outlook, LOW looks like an impressive value stock at the moment.
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Lowe's Companies, Inc. (LOW) : Free Stock Analysis Report
