Lowe's (LOW) Laps the Stock Market: Here's Why

Lowe's (LOW) ended the recent trading session at $218.08, demonstrating a +2.84% change from the preceding day's closing price. The stock outpaced the S&P 500's daily gain of 1.79%. Elsewhere, the Dow saw an upswing of 1.71%, while the tech-heavy Nasdaq appreciated by 2.59%.

Prior to today's trading, shares of the home improvement retailer had lost 5.24% lagged the Retail-Wholesale sector's gain of 8.07% and the S&P 500's gain of 1.72%.

The upcoming earnings release of Lowe's will be of great interest to investors. The company's earnings report is expected on August 19, 2026. On that day, Lowe's is projected to report earnings of $4.25 per share, which would represent a year-over-year decline of 1.85%. Meanwhile, our latest consensus estimate is calling for revenue of $26.25 billion, up 9.54% from the prior-year quarter.

For the full year, the Zacks Consensus Estimates are projecting earnings of $12.46 per share and revenue of $93.09 billion, which would represent changes of +1.38% and +10.49%, respectively, from the prior year.

Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Lowe's. Such recent modifications usually signify the changing landscape of near-term business trends. Consequently, upward revisions in estimates express analysts' positivity towards the business operations and its ability to generate profits.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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 varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 0.18% lower. As of now, Lowe's holds a Zacks Rank of #4 (Sell).

In the context of valuation, Lowe's is at present trading with a Forward P/E ratio of 17.02. This represents a discount compared to its industry average Forward P/E of 21.19.

Also, we should mention that LOW has a PEG ratio of 2.68. 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. LOW's industry had an average PEG ratio of 1.98 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 213, putting it in the bottom 14% of all 250+ industries.

The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in 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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This article originally published on Zacks Investment Research (zacks.com).

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