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The Zacks Retail and Wholesale sector has struggled to find its footing in a historically-volatile 2022, down more than 20% and underperforming the general market by a wide margin.
A titan residing in the realm that many are familiar with, Lowe’s Companies, Inc. LOW, is on deck to unveil quarterly earnings on November 16th, before the market open.
Lowe’s Companies, Inc. has evolved as one of the world’s leading home improvement retailers, offering services to homeowners, renters, and commercial business customers.
Currently, the company carries a Zacks Rank #3 (Hold) paired with an overall VGM Score of a B.
How does everything else stack up heading into the release? Let’s take a closer look.
Share Performance & Valuation
LOW shares are down roughly 17% year-to-date, nearly precisely in line with the S&P 500’s return.
Image Source: Zacks Investment Research
Over the last month, LOW shares have tacked on a solid 9% in value, just marginally underperforming the S&P 500.
Image Source: Zacks Investment Research
LOW shares currently trade at 15.1X forward earnings, nicely beneath the 18.3X five-year median and reflecting a 38% discount relative to its Zacks Retail and Wholesale sector.
The company sports a Style Score of a B for Value.
Image Source: Zacks Investment Research
Quarterly Estimates
Two analysts have upped their quarterly earnings outlook over the last several months, with the Zacks Consensus EPS Estimate of $3.10 indicating a Y/Y uptick in earnings of more than 13%.
Image Source: Zacks Investment Research
Pivoting to the top-line, the Zacks Consensus Sales Estimate of $23.1 billion suggests a marginal 0.8% Y/Y uptick.
Quarterly Performance & Market Reactions
LOW is currently on a strong earnings streak, exceeding the Zacks Consensus EPS Estimate in thirteen consecutive quarters. In its latest print, the company registered a modest 0.9% EPS beat.
Revenue results have left some to be desired as of late; Lowe’s has fallen short of top-line expectations in back-to-back quarters. Below is a chart illustrating the company’s revenue on a quarterly basis.
Image Source: Zacks Investment Research
Putting Everything Together
LOW shares have primarily traded in line with the S&P 500 year-to-date and over the last month.
The company’s forward earnings multiple is nicely beneath its five-year median and Zacks sector average.
Two analysts have upped their earnings outlook over the last several months, with estimates indicating a sizable uptick in earnings and a marginal increase in quarterly revenue.
The company has consistently exceeded bottom-line expectations, but sales results have come in under expectations in back-to-back prints.
Heading into the release, Lowe’s Companies, Inc. LOW carries a Zacks Rank #3 (Hold) paired with an Earnings ESP Score of -0.6%.
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Lowe’s Companies, Inc. (LOW): Free Stock Analysis Report
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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