Home Depot (HD) closed the most recent trading day at $182.92, moving -0.88% from the previous trading session. This move lagged the S&P 500's daily gain of 0.07%. Meanwhile, the Dow lost 0.21%, and the Nasdaq, a tech-heavy index, added 0.13%.
Prior to today's trading, shares of the home-improvement retailer had gained 3.06% over the past month. This has outpaced the Retail-Wholesale sector's gain of 2.42% and lagged the S&P 500's gain of 5.36% in that time.
Investors will be hoping for strength from HD as it approaches its next earnings release, which is expected to be February 26, 2019. On that day, HD is projected to report earnings of $2.17 per share, which would represent year-over-year growth of 28.4%. Meanwhile, our latest consensus estimate is calling for revenue of $26.58 billion, up 11.28% from the prior-year quarter.
Investors should also note any recent changes to analyst estimates for HD. These recent revisions tend to reflect the evolving nature of short-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 0.15% lower. HD is currently a Zacks Rank #3 (Hold).
Valuation is also important, so investors should note that HD has a Forward P/E ratio of 18.09 right now. Its industry sports an average Forward P/E of 11.03, 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 1.4. 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 1.08 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 154, which puts it in the bottom 40% 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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