Home Depot (HD) closed the most recent trading day at $206.85, moving +0.39% from the previous trading session. This move outpaced the S&P 500's daily loss of 0.22%. At the same time, the Dow lost 0.22%, and the tech-heavy Nasdaq lost 0.23%.
Heading into today, shares of the home-improvement retailer had gained 8.83% over the past month, outpacing the Retail-Wholesale sector's gain of 5.93% and the S&P 500's gain of 4.87% in that time.
HD will be looking to display strength as it nears its next earnings release, which is expected to be May 21, 2019. The company is expected to report EPS of $2.19, up 5.29% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $26.43 billion, up 5.94% from the prior-year quarter.
For the full year, our Zacks Consensus Estimates are projecting earnings of $10.09 per share and revenue of $111.38 billion, which would represent changes of +2.02% and +2.94%, respectively, from the prior year.
It is also important to note the recent changes to analyst estimates for HD. These revisions help to show the ever-changing nature of near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. The Zacks Consensus EPS estimate has moved 0% lower within the past month. HD is holding a Zacks Rank of #3 (Hold) right now.
Digging into valuation, HD currently has a Forward P/E ratio of 20.42. Its industry sports an average Forward P/E of 13.78, so we one might conclude that HD is trading at a premium comparatively.
It is also worth noting that HD currently has a PEG ratio of 1.79. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. Building Products - Retail stocks are, on average, holding a PEG ratio of 1.32 based on yesterday's closing prices.
The Building Products - Retail industry is part of the Retail-Wholesale sector. This industry currently has a Zacks Industry Rank of 159, which puts it in the bottom 38% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
You can find more information on all of these metrics, and much more, on Zacks.com.
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The Home Depot, Inc. (HD) : Free Stock Analysis Report
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