Lowe's (LOW) Gains But Lags Market: What You Should Know

·3-min read

In the latest trading session, Lowe's (LOW) closed at $191.75, marking a +0.32% move from the previous day. This move lagged the S&P 500's daily gain of 0.58%.

Heading into today, shares of the home improvement retailer had lost 1.27% over the past month, lagging the Retail-Wholesale sector's gain of 3.43% and the S&P 500's gain of 2.17% in that time.

Investors will be hoping for strength from LOW as it approaches its next earnings release. On that day, LOW is projected to report earnings of $3.87 per share, which would represent year-over-year growth of 3.2%. Our most recent consensus estimate is calling for quarterly revenue of $26.87 billion, down 1.59% from the year-ago period.

LOW's full-year Zacks Consensus Estimates are calling for earnings of $10.76 per share and revenue of $91.63 billion. These results would represent year-over-year changes of +21.44% and +2.26%, respectively.

Investors might also notice recent changes to analyst estimates for LOW. Recent revisions tend to reflect the latest near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Our research shows that these estimate changes are directly correlated with near-term stock prices. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.

The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 0.45% higher. LOW is currently sporting a Zacks Rank of #2 (Buy).

Digging into valuation, LOW currently has a Forward P/E ratio of 17.77. Its industry sports an average Forward P/E of 16.2, so we one might conclude that LOW is trading at a premium comparatively.

Meanwhile, LOW's PEG ratio is currently 1.29. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. The Building Products - Retail industry currently had an average PEG ratio of 1.29 as of yesterday's close.

The Building Products - Retail industry is part of the Retail-Wholesale sector. This industry currently has a Zacks Industry Rank of 71, which puts it in the top 28% of all 250+ industries.

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.

Make sure to utilize Zacks. Com to follow all of these stock-moving metrics, and more, in the coming trading sessions.

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