Lowe's (LOW) ended the recent trading session at $223.78, demonstrating a -1.64% change from the preceding day's closing price. The stock fell short of the S&P 500, which registered a gain of 0.72% for the day. Meanwhile, the Dow gained 0.3%, and the Nasdaq, a tech-heavy index, added 1.12%.
Heading into today, shares of the home improvement retailer had gained 7.95% over the past month, outpacing the Retail-Wholesale sector's loss of 0.64% and the S&P 500's loss of 0.9%.
The upcoming earnings release of Lowe's will be of great interest to investors. The company's earnings report is expected on August 19, 2026. The company is predicted to post an EPS of $4.26, indicating a 1.62% decline compared to the equivalent quarter last year. Simultaneously, our latest consensus estimate expects the revenue to be $26.25 billion, showing a 9.54% escalation compared to the year-ago quarter.
Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $12.48 per share and revenue of $93.09 billion, indicating changes of +1.55% and +7.89%, respectively, compared to the previous year.
Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Lowe's. These latest adjustments often mirror the shifting dynamics of short-term business patterns. Therefore, positive revisions in estimates convey analysts' confidence in the business performance and profit potential.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational 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 last 30 days, the Zacks Consensus EPS estimate has witnessed an unchanged state. Lowe's presently features a Zacks Rank of #3 (Hold).
In the context of valuation, Lowe's is at present trading with a Forward P/E ratio of 18.23. For comparison, its industry has an average Forward P/E of 23.84, which means Lowe's is trading at a discount to the group.
It is also worth noting that LOW currently has a PEG ratio of 2.87. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. The average PEG ratio for the Retail - Home Furnishings industry stood at 1.98 at the close of the market yesterday.
The Retail - Home Furnishings industry is part of the Retail-Wholesale sector. This industry, currently bearing a Zacks Industry Rank of 209, finds itself in the bottom 16% echelons 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.
Zacks' Research Chief Names "Stock Most Likely to Double"
Our team of experts has just released the 5 stocks with the greatest probability of gaining +100% or more in the coming months. Of those 5, Director of Research Sheraz Mian highlights the one stock set to climb highest.
This top pick is a little-known satellite-based communications firm. Space is projected to become a trillion dollar industry, and this company's customer base is growing fast. Analysts have forecasted a major revenue breakout in 2025. Of course, all our elite picks aren't winners but this one could far surpass earlier Zacks' Stocks Set to Double like Hims & Hers Health, which shot up +209%.
Free: See Our Top Stock And 4 Runners UpWant 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).