Home Depot (HD) closed the most recent trading day at $247.96, moving -0.49% from the previous trading session. This change was narrower than the S&P 500's 0.56% loss on the day. At the same time, the Dow lost 1.39%, and the tech-heavy Nasdaq gained 0.53%.
Prior to today's trading, shares of the home-improvement retailer had lost 2.08% over the past month. This has lagged the Retail-Wholesale sector's gain of 8.58% and the S&P 500's loss of 1.79% in that time.
Investors will be hoping for strength from HD as it approaches its next earnings release. The company is expected to report EPS of $3.23, up 1.89% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $32.88 billion, up 6.61% from the year-ago period.
HD's full-year Zacks Consensus Estimates are calling for earnings of $9.91 per share and revenue of $115.40 billion. These results would represent year-over-year changes of -3.32% and +4.7%, respectively.
Investors should also note any recent changes to analyst estimates for HD. These revisions help to show the ever-changing nature of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
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.
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 0.56% higher. HD is currently a Zacks Rank #3 (Hold).
Digging into valuation, HD currently has a Forward P/E ratio of 25.14. This represents a premium compared to its industry's average Forward P/E of 18.28.
Meanwhile, HD's PEG ratio is currently 2.23. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. HD's industry had an average PEG ratio of 1.41 as of yesterday's close.
The Building Products - Retail industry is part of the Retail-Wholesale sector. This industry currently has a Zacks Industry Rank of 16, which puts it in the top 7% 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.
Make sure to utilize Zacks. Com to follow all of these stock-moving metrics, and more, in the coming trading sessions.
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The Home Depot, Inc. (HD) : Free Stock Analysis Report
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