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The latest trading session saw Lowe's (LOW) 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.