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Home Depot (HD) Stock Moves -0.1%: What You Should Know

Zacks Equity Research

Home Depot (HD) closed the most recent trading day at $189.15, moving -0.1% from the previous trading session. This change was narrower than the S&P 500's daily loss of 0.46%. At the same time, the Dow lost 0.13%, and the tech-heavy Nasdaq lost 0.63%.

Coming into today, shares of the home-improvement retailer had gained 0.55% in the past month. In that same time, the Retail-Wholesale sector gained 1.99%, while the S&P 500 gained 1.08%.

Investors will be hoping for strength from HD as it approaches its next earnings release. On that day, HD is projected to report earnings of $2.20 per share, which would represent year-over-year growth of 5.77%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $26.44 billion, up 5.98% from the year-ago period.

HD's full-year Zacks Consensus Estimates are calling for earnings of $10.10 per share and revenue of $111.38 billion. These results would represent year-over-year changes of +2.12% and +2.93%, respectively.

Investors should also note any recent changes to analyst estimates for HD. 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.

Our research shows that these estimate changes are directly correlated with near-term stock prices. 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.

The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 1.29% lower within the past month. HD currently has a Zacks Rank of #3 (Hold).

Digging into valuation, HD currently has a Forward P/E ratio of 18.75. For comparison, its industry has an average Forward P/E of 12.27, which means HD is trading at a premium to the group.

It is also worth noting that HD currently has a PEG ratio of 1.62. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. HD's industry had an average PEG ratio of 1.12 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 163, putting it in the bottom 37% 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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