In the latest trading session, Lowe's (LOW) closed at $153.72, marking a +1.67% move from the previous day. This move outpaced the S&P 500's daily gain of 0.27%. Meanwhile, the Dow gained 1.31%, and the Nasdaq, a tech-heavy index, lost 0.39%.
Prior to today's trading, shares of the home improvement retailer had gained 12.66% over the past month. This has outpaced the Retail-Wholesale sector's gain of 6.97% and the S&P 500's gain of 6.66% in that time.
Wall Street will be looking for positivity from LOW as it approaches its next earnings report date. This is expected to be August 19, 2020. On that day, LOW is projected to report earnings of $2.65 per share, which would represent year-over-year growth of 23.26%. Meanwhile, our latest consensus estimate is calling for revenue of $23.66 billion, up 12.71% from the prior-year quarter.
LOW's full-year Zacks Consensus Estimates are calling for earnings of $6.82 per share and revenue of $77.30 billion. These results would represent year-over-year changes of +19.23% and +7.14%, respectively.
Any recent changes to analyst estimates for LOW should also be noted by investors. These revisions typically reflect the latest short-term business trends, which can change frequently. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
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 2.55% higher. LOW is currently sporting a Zacks Rank of #3 (Hold).
Digging into valuation, LOW currently has a Forward P/E ratio of 22.39. Its industry sports an average Forward P/E of 18.51, so we one might conclude that LOW is trading at a premium comparatively.
Also, we should mention that LOW has a PEG ratio of 1.43. 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. Building Products - Retail stocks are, on average, holding a PEG ratio of 1.43 based on yesterday's closing prices.
The Building Products - Retail industry is part of the Retail-Wholesale sector. This industry currently has a Zacks Industry Rank of 17, which puts it in the top 7% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our 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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Lowes Companies, Inc. (LOW) : Free Stock Analysis Report
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