Why the Market Dipped But Lowe's (LOW) Gained Today
Lowe's (LOW) ended the recent trading session at $281.83, demonstrating a +0.39% swing from the preceding day's closing price. This move outpaced the S&P 500's daily loss of 0.76%. On the other hand, the Dow registered a loss of 0.75%, and the technology-centric Nasdaq decreased by 1.01%.
The home improvement retailer's shares have seen an increase of 9.39% over the last month, surpassing the Retail-Wholesale sector's gain of 3.42% and the S&P 500's gain of 4.31%.
The investment community will be paying close attention to the earnings performance of Lowe's in its upcoming release. It is anticipated that the company will report an EPS of $2.80, marking an 8.5% fall compared to the same quarter of the previous year. Meanwhile, the latest consensus estimate predicts the revenue to be $19.85 billion, indicating a 3.03% decrease compared to the same quarter of the previous year.
Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $11.91 per share and revenue of $82.91 billion, indicating changes of -9.77% and -4.01%, respectively, compared to the previous year.
Any recent changes to analyst estimates for Lowe's should also be noted by investors. Such recent modifications usually signify the changing landscape of near-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the company's business performance and profit potential.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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. Within the past 30 days, our consensus EPS projection has moved 0.13% lower. Lowe's is holding a Zacks Rank of #4 (Sell) right now.
Looking at its valuation, Lowe's is holding a Forward P/E ratio of 23.56. This represents a premium compared to its industry's average Forward P/E of 21.97.
One should further note that LOW currently holds a PEG ratio of 2.31. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. The average PEG ratio for the Building Products - Retail industry stood at 3.69 at the close of the market yesterday.
The Building Products - Retail industry is part of the Retail-Wholesale sector. At present, this industry carries a Zacks Industry Rank of 226, placing it within the bottom 11% of over 250 industries.
The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in the upcoming trading sessions.
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Lowe's Companies, Inc. (LOW) : Free Stock Analysis Report