Lowe's (LOW) closed at $248.03 in the latest trading session, marking a +1.79% move from the prior day. The stock exceeded the S&P 500, which registered a gain of 0.62% for the day. Elsewhere, the Dow gained 0.58%, while the tech-heavy Nasdaq added 0.83%.
The stock of home improvement retailer has fallen by 1.3% in the past month, lagging the Retail-Wholesale sector's loss of 0.96% and the S&P 500's gain of 0.8%.
Analysts and investors alike will be keeping a close eye on the performance of Lowe's in its upcoming earnings disclosure. 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%. In the meantime, our current consensus estimate forecasts the revenue to be $22.91 billion, indicating a 9.48% growth compared to the corresponding quarter of the prior year.
Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $12.69 per share and revenue of $93.31 billion. These totals would mark changes of +3.25% and +8.14%, respectively, from last year.
Investors might also notice recent changes to analyst estimates for Lowe's. These revisions help to show the ever-changing nature of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the business and profitability.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has shifted 0.01% upward. Lowe's presently features a Zacks Rank of #4 (Sell).
From a valuation perspective, Lowe's is currently exchanging hands at a Forward P/E ratio of 19.2. This indicates a discount in contrast to its industry's Forward P/E of 20.14.
We can additionally observe that LOW currently boasts a PEG ratio of 5.26. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. As the market closed yesterday, the Retail - Home Furnishings industry was having an average PEG ratio of 1.49.
The Retail - Home Furnishings industry is part of the Retail-Wholesale sector. With its current Zacks Industry Rank of 158, this industry ranks in the bottom 36% of all industries, numbering over 250.
The Zacks Industry Rank gauges the strength of our individual 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.
Ensure to harness Zacks.com to stay updated with all these stock-shifting metrics, among others, in the next trading sessions.
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Lowe's Companies, Inc. (LOW): Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).