The latest trading session saw Lowe’s (LOW – Free Report) ending at $232.05, denoting a +0.59% adjustment from its last day’s close. This move outpaced the S&P 500’s daily loss of 1.12%. Meanwhile, the Dow lost 0.31%, and the Nasdaq, a tech-heavy index, lost 2.04%.
Prior to today’s trading, shares of the home improvement retailer had lost 4.83% over the past month. This has was narrower than the Retail-Wholesale sector’s loss of 5.39% and lagged the S&P 500’s loss of 2.91% in that time.
Analysts and investors alike will be keeping a close eye on the performance of Lowe’s in its upcoming earnings disclosure. The company’s upcoming EPS is projected at $2.89, signifying a 5.56% drop compared to the same quarter of the previous year. At the same time, our most recent consensus estimate is projecting a revenue of $20.97 billion, reflecting a 1.86% fall from the equivalent quarter last year.
In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $12.28 per share and a revenue of $84.32 billion, indicating changes of +2.33% and +0.77%, respectively, from the former year.
Investors should also note any recent changes to analyst estimates for Lowe’s. Recent revisions tend to reflect the latest near-term business trends. 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 utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.
The Zacks Rank system, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. Over the past month, there’s been a 2.22% fall in the Zacks Consensus EPS estimate. Lowe’s is holding a Zacks Rank of #3 (Hold) right now.
In terms of valuation, Lowe’s is presently being traded at a Forward P/E ratio of 18.79. This expresses a premium compared to the average Forward P/E of 18.53 of its industry.
Meanwhile, LOW’s PEG ratio is currently 2.2. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company’s expected earnings growth rate into account. As the market closed yesterday, the Retail – Home Furnishings industry was having an average PEG ratio of 2.04.
The Retail – Home Furnishings industry is part of the Retail-Wholesale sector. With its current Zacks Industry Rank of 145, this industry ranks in the bottom 43% of all industries, numbering over 250.
The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.
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