In the latest trading session, Lowe's (LOW) closed at $202.18, marking a +0.37% move from the previous day. This change outpaced the S&P 500's 0.07% loss on the day. Meanwhile, the Dow gained 0.08%, and the Nasdaq, a tech-heavy index, lost 0.04%.
Heading into today, shares of the home improvement retailer had gained 10.45% over the past month, outpacing the Retail-Wholesale sector's gain of 9.45% and the S&P 500's gain of 8.06% in that time.
Lowe's will be looking to display strength as it nears its next earnings release, which is expected to be August 17, 2022. The company is expected to report EPS of $4.63, up 8.94% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $28.22 billion, up 2.36% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $13.41 per share and revenue of $97.62 billion. These totals would mark changes of +11.38% and +1.42%, respectively, from last year.
Investors should also note any recent changes to analyst estimates for Lowe's. 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.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 0.6% lower within the past month. Lowe's is holding a Zacks Rank of #3 (Hold) right now.
Valuation is also important, so investors should note that Lowe's has a Forward P/E ratio of 15.02 right now. This represents a premium compared to its industry's average Forward P/E of 9.98.
We can also see that LOW currently has a PEG ratio of 1.15. 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 industry currently had an average PEG ratio of 1.73 as of yesterday's close.
The Building Products - Retail industry is part of the Retail-Wholesale sector. This group has a Zacks Industry Rank of 74, putting it in the top 30% 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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Lowe's Companies, Inc. (LOW) : Free Stock Analysis Report
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