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

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In the latest trading session, Lowe's (LOW - Free Report) closed at $258.78, marking a +0.8% move from the previous day. The stock outpaced the S&P 500's daily loss of 0.21%. At the same time, the Dow lost 0.16%, and the tech-heavy Nasdaq lost 0.89%.

The home improvement retailer's shares have seen an increase of 2.77% over the last month, surpassing the Retail-Wholesale sector's loss of 2.84% and the S&P 500's loss of 1.56%.

Market participants will be closely following the financial results of Lowe's in its upcoming release. The company plans to announce its earnings on February 26, 2025. The company is forecasted to report an EPS of $1.81, showcasing a 2.26% upward movement from the corresponding quarter of the prior year. Simultaneously, our latest consensus estimate expects the revenue to be $18.22 billion, showing a 2.07% drop compared to the year-ago quarter.

For the full year, the Zacks Consensus Estimates project earnings of $11.88 per share and a revenue of $83.32 billion, demonstrating changes of -10% and -3.54%, respectively, from the preceding year.

Any recent changes to analyst estimates for Lowe's should also be noted by investors. Such recent modifications usually signify the changing landscape of near-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the company's business performance and profit potential.

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, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has remained unchanged. Lowe's is currently sporting a Zacks Rank of #3 (Hold).

Digging into valuation, Lowe's currently has a Forward P/E ratio of 21.61. Its industry sports an average Forward P/E of 20.85, so one might conclude that Lowe's is trading at a premium comparatively.

Investors should also note that LOW has a PEG ratio of 2.15 right now. 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. The Retail - Home Furnishings industry had an average PEG ratio of 2.18 as trading concluded yesterday.

The Retail - Home Furnishings industry is part of the Retail-Wholesale sector. At present, this industry carries a Zacks Industry Rank of 86, placing it within the top 35% of over 250 industries.

The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within the 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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