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In the latest trading session, Lowe's (LOW) closed at $246.89, marking a +0.13% move from the previous day. The stock's change was less than the S&P 500's daily gain of 0.16%. At the same time, the Dow added 0.25%, and the tech-heavy Nasdaq lost 0.06%.
Coming into today, shares of the home improvement retailer had lost 7.84% in the past month. In that same time, the Retail-Wholesale sector lost 4.61%, while the S&P 500 lost 2.7%.
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 $1.81, signifying a 2.26% increase compared to the same quarter of the previous year. At the same time, our most recent consensus estimate is projecting a revenue of $18.22 billion, reflecting a 2.07% fall from the equivalent quarter last year.
Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $11.88 per share and revenue of $83.32 billion. These totals would mark changes of -10% and -3.54%, respectively, from last year.
Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Lowe's. These revisions help to show the ever-changing nature of near-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the company's business performance and profit potential.
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, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. Over the past month, there's been a 0.09% fall in the Zacks Consensus EPS estimate. At present, Lowe's boasts a Zacks Rank of #3 (Hold).
In the context of valuation, Lowe's is at present trading with a Forward P/E ratio of 20.79. This indicates a premium in contrast to its industry's Forward P/E of 20.01.
We can also see that LOW currently has a PEG ratio of 2.07. 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 Retail - Home Furnishings was holding an average PEG ratio of 2.07 at yesterday's closing price.