Lowe's (LOW) Exceeds Market Returns: Some Facts to Consider

Company Performance - Lowe's stock closed at $271.47, reflecting a +1.59% increase from the previous day, outperforming the S&P 500's daily gain of 0.16% [1] - Over the past month, Lowe's shares have appreciated by 8.06%, surpassing the Retail-Wholesale sector's gain of 5.12% and the S&P 500's gain of 1.89% [1] Upcoming Earnings - Lowe's earnings report is scheduled for February 25, 2026, with expected earnings of $1.95 per share, indicating a year-over-year growth of 1.04% [2] - The consensus estimate projects revenue of $20.35 billion for the upcoming quarter, reflecting a 9.71% increase from the same quarter last year [2] Fiscal Year Estimates - For the entire fiscal year, the Zacks Consensus Estimates predict earnings of $12.26 per share and revenue of $86.06 billion, showing changes of +2.17% and +2.85% respectively from the previous year [3] - Recent changes to analyst estimates for Lowe's suggest optimism about the business outlook, as positive revisions often correlate with near-term stock price movements [3][4] Valuation Metrics - Lowe's is currently trading at a Forward P/E ratio of 21.8, which is lower than the industry average of 22.9, indicating a potential discount [6] - The company's PEG ratio stands at 4.43, compared to the Retail - Home Furnishings industry's average PEG ratio of 2.26 [7] Industry Ranking - The Retail - Home Furnishings industry, part of the Retail-Wholesale sector, has a Zacks Industry Rank of 167, placing it in the bottom 32% of over 250 industries [8] - Research indicates that the top 50% rated industries outperform the bottom half by a factor of 2 to 1 [8]