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Lowe's (LOW) Stock Slides as Market Rises: Facts to Know Before You Trade

Lowe's (LOW) closed the latest trading day at $235.44, indicating a -0.73% change from the previous session's end. The stock's performance was behind the S&P 500's daily gain of 0.74%. Meanwhile, the Dow lost 0.01%, and the Nasdaq, a tech-heavy index, added 1.68%.

The home improvement retailer's shares have seen a decrease of 4.14% over the last month, not keeping up with the Retail-Wholesale sector's gain of 1.06% and the S&P 500's gain of 0.8%.

The upcoming earnings release of Lowe's will be of great interest to investors. The company is predicted to post an EPS of $2.94, indicating a 19.89% decline compared to the equivalent quarter last year. Alongside, our most recent consensus estimate is anticipating revenue of $21.07 billion, indicating a 5.7% downward movement from the same quarter last year.

For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $12.21 per share and a revenue of $84.48 billion, representing changes of -7.5% and -2.2%, respectively, from the prior year.

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It is also important to note the recent changes to analyst estimates for Lowe's. These latest adjustments often mirror the shifting dynamics of short-term business patterns. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the company's business health and profitability.

Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable rating system.

Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 0.01% lower. Lowe's currently has a Zacks Rank of #3 (Hold).

With respect to valuation, Lowe's is currently being traded at a Forward P/E ratio of 19.42. This signifies a premium in comparison to the average Forward P/E of 15.96 for its industry.

One should further note that LOW currently holds a PEG ratio of 1.75. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. The Building Products - Retail industry currently had an average PEG ratio of 1.75 as of yesterday's close.

The Building Products - Retail industry is part of the Retail-Wholesale sector. This group has a Zacks Industry Rank of 74, putting it in the top 30% of all 250+ industries.

The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained 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 use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming trading sessions.

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Lowe's Companies, Inc. (LOW) : Free Stock Analysis Report

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