Lowe's (LOW) Stock Sinks As Market Gains: What You Should Know
Lowe's (LOW) closed the most recent trading day at $189.69, moving -0.98% from the previous trading session. This move lagged the S&P 500's daily gain of 0.3%. Meanwhile, the Dow gained 0.24%, and the Nasdaq, a tech-heavy index, added 0.34%.
Heading into today, shares of the home improvement retailer had lost 5.46% over the past month, lagging the Retail-Wholesale sector's loss of 3.15% and the S&P 500's loss of 1.21% in that time.
Lowe's will be looking to display strength as it nears its next earnings release. On that day, Lowe's is projected to report earnings of $3.54 per share, which would represent year-over-year growth of 0.85%. Our most recent consensus estimate is calling for quarterly revenue of $21.85 billion, down 7.63% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $13.83 per share and revenue of $88.84 billion, which would represent changes of -0.43% and -8.47%, respectively, from the prior year.
Any recent changes to analyst estimates for Lowe's should also be noted by investors. These recent revisions tend to reflect the evolving nature of short-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 0.01% higher. Lowe's is holding a Zacks Rank of #3 (Hold) right now.
In terms of valuation, Lowe's is currently trading at a Forward P/E ratio of 13.85. For comparison, its industry has an average Forward P/E of 11.96, which means Lowe's is trading at a premium to the group.
It is also worth noting that LOW currently has a PEG ratio of 1.05. 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. Building Products - Retail stocks are, on average, holding a PEG ratio of 1.59 based on yesterday's closing prices.
The Building Products - Retail industry is part of the Retail-Wholesale sector. This group has a Zacks Industry Rank of 32, putting it in the top 13% of all 250+ industries.
The Zacks Industry Rank includes is listed in order 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.
To follow LOW in the coming trading sessions, be sure to utilize Zacks.com.
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