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Lowe's (LOW) Outpaces Stock Market Gains: What You Should Know

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Lowe's (LOW - Free Report) ended the recent trading session at $257.03, demonstrating a +0.23% swing from the preceding day's closing price. The stock's performance was ahead of the S&P 500's daily gain of 0.03%. At the same time, the Dow added 0.28%, and the tech-heavy Nasdaq lost 0.36%.

Coming into today, shares of the home improvement retailer had gained 3.13% in the past month. In that same time, the Retail-Wholesale sector gained 9.07%, while the S&P 500 gained 4.19%.

The investment community will be paying close attention to the earnings performance of Lowe's in its upcoming release. The company is slated to reveal its earnings on February 26, 2025. On that day, Lowe's is projected to report earnings of $1.80 per share, which would represent year-over-year growth of 1.69%. Simultaneously, our latest consensus estimate expects the revenue to be $18.23 billion, showing a 2.02% drop compared to the year-ago quarter.

Investors should also take note of any recent adjustments to analyst estimates for Lowe's. These revisions typically reflect the latest short-term business trends, which can change frequently. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.

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 last 30 days, the Zacks Consensus EPS estimate has moved 0.14% lower. Lowe's currently has a Zacks Rank of #3 (Hold).

Digging into valuation, Lowe's currently has a Forward P/E ratio of 20.45. This represents a discount compared to its industry's average Forward P/E of 21.39.

Investors should also note that LOW has a PEG ratio of 2.04 right now. 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 Retail - Home Furnishings industry currently had an average PEG ratio of 2.05 as of yesterday's close.

The Retail - Home Furnishings industry is part of the Retail-Wholesale sector. This group has a Zacks Industry Rank of 164, putting it in the bottom 35% 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.

Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding trading sessions.


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