Lowe's, JPMorgan: S&P Laggards
The S&P 500 rose 20.77 points, or 1.6%, to close at 1316.
Shares of Lowe's dropped 10.11% to $25.60.
The Mooresville, N.C.-based home improvement products retailer lowered its earnings outlook for fiscal 2012 on Monday. Lowe's now anticipates a profit of between $1.73 to $1.83 a share for the year, down slightly from a prior view of between $1.75 to $1.83 a share.
Lowe's also reported first-quarter earnings of $527 million, or 43 cents a share, up from a profit of $461 million, or 34 cents a share, in the year-ago equivalent period.
Analysts, on average, expected earnings of 42 cents a share on sales of $12.99 billion. Lowe's first-quarter sales were $13.2 billion, up from $12.2 billion the prior year.
Lowe's shares trade at an estimated price-to-earnings ratio for next year of 11.24X; the average for home improvement retailers is 14.38X. For comparison, Home Depot(HD) has a higher forward P/E of 14.42X.
Sixteen of the 28 analysts who cover Lowe's rate it at buy. Eleven analysts give the stock a hold rating and one rates it at sell.