Lowe's (LOW) closed the most recent trading day at $243.99, moving -1.79% from the previous trading session. The stock's performance was behind the S&P 500's daily gain of 0.8%. Elsewhere, the Dow saw a downswing of 0.15%, while the tech-heavy Nasdaq appreciated by 1.6%.
Shares of the home improvement retailer have appreciated by 3.64% over the course of the past month, underperforming the Retail-Wholesale sector's gain of 7.22%, and the S&P 500's gain of 5.15%.
The upcoming earnings release of Lowe's will be of great interest to investors. On that day, Lowe's is projected to report earnings of $2.96 per share, which would represent year-over-year growth of 1.37%. Meanwhile, our latest consensus estimate is calling for revenue of $22.91 billion, up 9.48% from the prior-year quarter.
For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $12.69 per share and a revenue of $93.31 billion, representing changes of +3.25% and +8.14%, respectively, from the prior year.
Investors should also pay attention to any latest changes in analyst estimates for Lowe's. These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the business health and profitability.
Based on our research, we believe these estimate revisions are directly related to near-term stock moves. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
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. The Zacks Consensus EPS estimate remained stagnant within the past month. Lowe's currently has a Zacks Rank of #4 (Sell).
Digging into valuation, Lowe's currently has a Forward P/E ratio of 19.58. This denotes a discount relative to the industry average Forward P/E of 21.1.
Meanwhile, LOW's PEG ratio is currently 5.36. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. By the end of yesterday's trading, the Retail - Home Furnishings industry had an average PEG ratio of 1.56.
The Retail - Home Furnishings industry is part of the Retail-Wholesale sector. This industry currently has a Zacks Industry Rank of 97, which puts it in the top 40% of all 250+ industries.
The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding trading sessions.
5 Stocks Set to Double
Each was handpicked by a Zacks expert as the #1 favorite stock to gain +100% or more in the coming year. While not all picks can be winners, previous recommendations have soared +112%, +171%, +209% and +232%.
Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor.
Today, See These 5 Potential Home Runs >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Lowe's Companies, Inc. (LOW): Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).