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Lowe's (LOW) Advances While Market Declines: Some Information for Investors

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The most recent trading session ended with Lowe's (LOW - Free Report) standing at $264.98, reflecting a +1.16% shift from the previouse trading day's closing. The stock's change was more than the S&P 500's daily loss of 0.28%. Elsewhere, the Dow saw a downswing of 0.61%, while the tech-heavy Nasdaq depreciated by 0.33%.

Shares of the home improvement retailer have depreciated by 2.17% over the course of the past month, underperforming the Retail-Wholesale sector's gain of 1.01% and the S&P 500's gain of 0.41%.

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 19, 2024. The company is forecasted to report an EPS of $2.80, showcasing an 8.5% downward movement from the corresponding quarter of the prior year. Our most recent consensus estimate is calling for quarterly revenue of $19.85 billion, down 3.03% from the year-ago period.

For the annual period, the Zacks Consensus Estimates anticipate earnings of $11.91 per share and a revenue of $82.91 billion, signifying shifts of -9.77% and -4.01%, respectively, from the last year.

Furthermore, it would be beneficial for investors to monitor any recent shifts in analyst projections for Lowe's. These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the company's business health and profitability.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, 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. Over the past month, the Zacks Consensus EPS estimate has remained steady. Lowe's is holding a Zacks Rank of #3 (Hold) right now.

From a valuation perspective, Lowe's is currently exchanging hands at a Forward P/E ratio of 21.99. This valuation marks a premium compared to its industry's average Forward P/E of 19.82.

It's also important to note that LOW currently trades at a PEG ratio of 2.15. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. Building Products - Retail stocks are, on average, holding a PEG ratio of 3.65 based on yesterday's closing prices.

The Building Products - Retail industry is part of the Retail-Wholesale sector. Currently, this industry holds a Zacks Industry Rank of 185, positioning it in the bottom 27% of all 250+ industries.

The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming trading sessions.


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