The latest trading session saw Lowe’s (LOW Quick QuoteLOW – Free Report) ending at $198.25, denoting a +1.28% adjustment from its last day’s close. The stock outperformed the S&P 500, which registered a daily gain of 1.06%. Elsewhere, the Dow saw an upswing of 0.93%, while the tech-heavy Nasdaq appreciated by 1.2%.
Shares of the home improvement retailer witnessed a loss of 11.03% over the previous month, trailing the performance of the Retail-Wholesale sector with its loss of 6.3% and the S&P 500’s loss of 3%.
Investors will be eagerly watching for the performance of Lowe’s in its upcoming earnings disclosure. The company’s earnings report is set to be unveiled on November 21, 2023. The company’s earnings per share (EPS) are projected to be $3.13, reflecting a 4.28% decrease from the same quarter last year. Meanwhile, our latest consensus estimate is calling for revenue of $21.16 billion, down 9.86% from the prior-year quarter.
In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $13.44 per share and a revenue of $87.87 billion, indicating changes of -3.24% and -9.47%, respectively, from the former year.
It’s also important for investors to be aware of any recent modifications to analyst estimates for Lowe’s. Such recent modifications usually signify the changing landscape of near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company’s business outlook.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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, the Zacks Consensus EPS estimate has moved 0.19% lower. As of now, Lowe’s holds a Zacks Rank of #3 (Hold).
From a valuation perspective, Lowe’s is currently exchanging hands at a Forward P/E ratio of 14.57. This valuation marks a premium compared to its industry’s average Forward P/E of 10.76.
Meanwhile, LOW’s PEG ratio is currently 1.28. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company’s expected earnings growth rate. LOW’s industry had an average PEG ratio of 1.83 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 59, which puts it in the top 24% 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.