We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Home Depot (HD) Outpaces Stock Market Gains: What You Should Know
Read MoreHide Full Article
Home Depot (HD - Free Report) closed at $267.42 in the latest trading session, marking a +0.8% move from the prior day. This change outpaced the S&P 500's 0.74% gain on the day. Elsewhere, the Dow gained 0.43%, while the tech-heavy Nasdaq added 1.67%.
Prior to today's trading, shares of the home-improvement retailer had gained 8.12% over the past month. This has lagged the Retail-Wholesale sector's gain of 8.32% and outpaced the S&P 500's gain of 5.51% in that time.
Investors will be hoping for strength from HD as it approaches its next earnings release, which is expected to be August 18, 2020. In that report, analysts expect HD to post earnings of $3.30 per share. This would mark year-over-year growth of 4.1%. Meanwhile, our latest consensus estimate is calling for revenue of $33.17 billion, up 7.57% from the prior-year quarter.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $10.09 per share and revenue of $115.86 billion. These totals would mark changes of -1.56% and +5.11%, respectively, from last year.
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.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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.
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 1.79% higher. HD currently has a Zacks Rank of #2 (Buy).
Investors should also note HD's current valuation metrics, including its Forward P/E ratio of 26.3. This represents a premium compared to its industry's average Forward P/E of 19.49.
We can also see that HD currently has a PEG ratio of 2.3. 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. The Building Products - Retail industry currently had an average PEG ratio of 2.3 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 58, which puts it in the top 23% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual 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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Home Depot (HD) Outpaces Stock Market Gains: What You Should Know
Home Depot (HD - Free Report) closed at $267.42 in the latest trading session, marking a +0.8% move from the prior day. This change outpaced the S&P 500's 0.74% gain on the day. Elsewhere, the Dow gained 0.43%, while the tech-heavy Nasdaq added 1.67%.
Prior to today's trading, shares of the home-improvement retailer had gained 8.12% over the past month. This has lagged the Retail-Wholesale sector's gain of 8.32% and outpaced the S&P 500's gain of 5.51% in that time.
Investors will be hoping for strength from HD as it approaches its next earnings release, which is expected to be August 18, 2020. In that report, analysts expect HD to post earnings of $3.30 per share. This would mark year-over-year growth of 4.1%. Meanwhile, our latest consensus estimate is calling for revenue of $33.17 billion, up 7.57% from the prior-year quarter.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $10.09 per share and revenue of $115.86 billion. These totals would mark changes of -1.56% and +5.11%, respectively, from last year.
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.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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.
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 1.79% higher. HD currently has a Zacks Rank of #2 (Buy).
Investors should also note HD's current valuation metrics, including its Forward P/E ratio of 26.3. This represents a premium compared to its industry's average Forward P/E of 19.49.
We can also see that HD currently has a PEG ratio of 2.3. 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. The Building Products - Retail industry currently had an average PEG ratio of 2.3 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 58, which puts it in the top 23% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual 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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.