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Lowe's (LOW) Stock Moves -1%: What You Should Know

Lowe's (LOW) closed the most recent trading day at $125.31, moving -1% from the previous trading session. This change was narrower than the S&P 500's daily loss of 1.05%. Meanwhile, the Dow lost 0.78%, and the Nasdaq, a tech-heavy index, lost 1.79%.

Coming into today, shares of the home improvement retailer had gained 3.15% in the past month. In that same time, the Retail-Wholesale sector gained 4.07%, while the S&P 500 gained 1.5%.

LOW will be looking to display strength as it nears its next earnings release, which is expected to be February 26, 2020. On that day, LOW is projected to report earnings of $0.91 per share, which would represent year-over-year growth of 13.75%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $16.16 billion, up 3.27% from the year-ago period.

Any recent changes to analyst estimates for LOW should also be noted by investors. Recent revisions tend to reflect the latest near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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 0.03% lower. LOW is holding a Zacks Rank of #3 (Hold) right now.

Looking at its valuation, LOW is holding a Forward P/E ratio of 18.92. For comparison, its industry has an average Forward P/E of 14.81, which means LOW is trading at a premium to the group.

Also, we should mention that LOW has a PEG ratio of 1.35. 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. The Building Products - Retail was holding an average PEG ratio of 1.35 at yesterday's closing price.

The Building Products - Retail industry is part of the Retail-Wholesale sector. This industry currently has a Zacks Industry Rank of 106, which puts it in the top 42% 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.

To follow LOW in the coming trading sessions, be sure to utilize Zacks.com.


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