U.S. markets open in 41 minutes
  • S&P Futures

    3,912.50
    -10.00 (-0.25%)
     
  • Dow Futures

    31,941.00
    +25.00 (+0.08%)
     
  • Nasdaq Futures

    13,201.50
    -100.50 (-0.76%)
     
  • Russell 2000 Futures

    2,286.10
    +1.00 (+0.04%)
     
  • Crude Oil

    63.27
    +0.05 (+0.08%)
     
  • Gold

    1,780.70
    -17.20 (-0.96%)
     
  • Silver

    27.95
    +0.03 (+0.10%)
     
  • EUR/USD

    1.2237
    +0.0068 (+0.56%)
     
  • 10-Yr Bond

    1.4610
    +0.0720 (+5.18%)
     
  • Vix

    22.64
    -0.47 (-2.03%)
     
  • GBP/USD

    1.4152
    +0.0011 (+0.08%)
     
  • USD/JPY

    106.0670
    +0.1850 (+0.17%)
     
  • BTC-USD

    51,486.04
    +522.36 (+1.02%)
     
  • CMC Crypto 200

    1,028.89
    +34.22 (+3.44%)
     
  • FTSE 100

    6,679.71
    +20.74 (+0.31%)
     
  • Nikkei 225

    30,168.27
    +496.57 (+1.67%)
     

Home Depot (HD) Outpaces Stock Market Gains: What You Should Know

  • Oops!
    Something went wrong.
    Please try again later.
Zacks Equity Research
·3 min read
  • Oops!
    Something went wrong.
    Please try again later.

In the latest trading session, Home Depot (HD) closed at $278.05, marking a +1.46% move from the previous day. This change outpaced the S&P 500's 0.98% gain on the day. Meanwhile, the Dow gained 0.99%, and the Nasdaq, a tech-heavy index, added 0.5%.

HD will be looking to display strength as it nears its next earnings release. On that day, HD is projected to report earnings of $2.57 per share, which would represent year-over-year growth of 12.72%. Our most recent consensus estimate is calling for quarterly revenue of $30 billion, up 16.38% from the year-ago period.

For the full year, our Zacks Consensus Estimates are projecting earnings of $11.76 per share and revenue of $129.56 billion, which would represent changes of +14.73% and +17.54%, respectively, from the prior year.

Any recent changes to analyst estimates for HD should also be noted by investors. These revisions typically reflect the latest short-term business trends, which can change frequently. 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. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.

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. Within the past 30 days, our consensus EPS projection has moved 0.05% higher. HD is currently a Zacks Rank #2 (Buy).

Valuation is also important, so investors should note that HD has a Forward P/E ratio of 24.02 right now. This valuation marks a premium compared to its industry's average Forward P/E of 16.02.

Investors should also note that HD has a PEG ratio of 2.16 right now. 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. HD's industry had an average PEG ratio of 1.19 as of yesterday's close.

The Building Products - Retail industry is part of the Retail-Wholesale sector. This group has a Zacks Industry Rank of 59, putting it in the top 24% 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.


Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
 
To read this article on Zacks.com click here.