Lowe's (LOW) Outpaces Stock Market Gains: What You Should Know
Lowe's (LOW) closed the most recent trading day at $231.82, moving +1.33% from the previous trading session.
Lowe's (LOW) closed the most recent trading day at $231.82, moving +1.33% from the previous trading session. This change outpaced the S&P 500's 0.48% gain on the day.
Prior to today's trading, shares of the home improvement retailer had gained 10.05% over the past month. This has outpaced the Retail-Wholesale sector's gain of 1.4% and the S&P 500's gain of 3.46% in that time.
Investors will be hoping for strength from LOW as it approaches its next earnings release. The company is expected to report EPS of $2.27, up 14.65% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $21.55 billion, down 3.41% from the prior-year quarter.
For the full year, our Zacks Consensus Estimates are projecting earnings of $11.33 per share and revenue of $93.05 billion, which would represent changes of +27.88% and +3.85%, respectively, from the prior year.
Investors might also notice recent changes to analyst estimates for LOW. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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 0.59% higher. LOW currently has a Zacks Rank of #2 (Buy).
Looking at its valuation, LOW is holding a Forward P/E ratio of 20.19. For comparison, its industry has an average Forward P/E of 17.38, which means LOW is trading at a premium to the group.
Investors should also note that LOW has a PEG ratio of 1.43 right now. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. LOW's industry had an average PEG ratio of 2.02 as of yesterday's close.
The Building Products - Retail industry is part of the Retail-Wholesale sector. This industry currently has a Zacks Industry Rank of 14, which puts it in the top 6% of all 250+ industries.
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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