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Home Depot (HD) Outpaces Stock Market Gains: What You Should Know
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Home Depot (HD - Free Report) closed at $274.73 in the latest trading session, marking a +1.99% move from the prior day. This change outpaced the S&P 500's 0.27% gain on the day. At the same time, the Dow added 1.31%, and the tech-heavy Nasdaq lost 0.39%.
Heading into today, shares of the home-improvement retailer had gained 9.55% over the past month, outpacing the Retail-Wholesale sector's gain of 6.97% and the S&P 500's gain of 6.66% in that time.
Wall Street will be looking for positivity from HD as it approaches its next earnings report date. This is expected to be August 18, 2020. The company is expected to report EPS of $3.35, up 5.68% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $33.31 billion, up 8.01% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $10.15 per share and revenue of $116.02 billion. These totals would mark changes of -0.98% and +5.26%, respectively, from last year.
Any recent changes to analyst estimates for HD should also be noted by investors. These revisions help to show the ever-changing nature of near-term business trends. 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. 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. The Zacks Consensus EPS estimate has moved 2.42% higher within the past month. HD is currently sporting a Zacks Rank of #3 (Hold).
Digging into valuation, HD currently has a Forward P/E ratio of 26.76. For comparison, its industry has an average Forward P/E of 18.51, which means HD is trading at a premium to the group.
It is also worth noting that HD currently has a PEG ratio of 2.34. 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 was holding an average PEG ratio of 1.43 at yesterday's closing price.
The Building Products - Retail industry is part of the Retail-Wholesale sector. This industry currently has a Zacks Industry Rank of 17, which puts it in the top 7% 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.
To follow HD in the coming trading sessions, be sure to utilize Zacks.com.
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Home Depot (HD) Outpaces Stock Market Gains: What You Should Know
Home Depot (HD - Free Report) closed at $274.73 in the latest trading session, marking a +1.99% move from the prior day. This change outpaced the S&P 500's 0.27% gain on the day. At the same time, the Dow added 1.31%, and the tech-heavy Nasdaq lost 0.39%.
Heading into today, shares of the home-improvement retailer had gained 9.55% over the past month, outpacing the Retail-Wholesale sector's gain of 6.97% and the S&P 500's gain of 6.66% in that time.
Wall Street will be looking for positivity from HD as it approaches its next earnings report date. This is expected to be August 18, 2020. The company is expected to report EPS of $3.35, up 5.68% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $33.31 billion, up 8.01% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $10.15 per share and revenue of $116.02 billion. These totals would mark changes of -0.98% and +5.26%, respectively, from last year.
Any recent changes to analyst estimates for HD should also be noted by investors. These revisions help to show the ever-changing nature of near-term business trends. 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. 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. The Zacks Consensus EPS estimate has moved 2.42% higher within the past month. HD is currently sporting a Zacks Rank of #3 (Hold).
Digging into valuation, HD currently has a Forward P/E ratio of 26.76. For comparison, its industry has an average Forward P/E of 18.51, which means HD is trading at a premium to the group.
It is also worth noting that HD currently has a PEG ratio of 2.34. 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 was holding an average PEG ratio of 1.43 at yesterday's closing price.
The Building Products - Retail industry is part of the Retail-Wholesale sector. This industry currently has a Zacks Industry Rank of 17, which puts it in the top 7% 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.
To follow HD in the coming trading sessions, be sure to utilize Zacks.com.