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Home Depot (HD) Dips More Than Broader Markets: What You Should Know
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In the latest trading session, Home Depot (HD - Free Report) closed at $328.76, marking a -0.33% move from the previous day. This change lagged the S&P 500's 0.09% loss on the day.
Coming into today, shares of the home-improvement retailer had gained 2.41% in the past month. In that same time, the Retail-Wholesale sector lost 3.25%, while the S&P 500 gained 2.28%.
Wall Street will be looking for positivity from HD as it approaches its next earnings report date. This is expected to be August 17, 2021. The company is expected to report EPS of $4.40, up 9.45% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $40.69 billion, up 6.92% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $14.10 per share and revenue of $143.55 billion. These totals would mark changes of +17.21% and +8.66%, 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 a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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. Over the past month, the Zacks Consensus EPS estimate has moved 0.41% lower. HD is holding a Zacks Rank of #4 (Sell) right now.
In terms of valuation, HD is currently trading at a Forward P/E ratio of 23.4. This represents a premium compared to its industry's average Forward P/E of 16.77.
Investors should also note that HD has a PEG ratio of 2.04 right now. 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 1.27 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 105, putting it in the top 42% 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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
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Home Depot (HD) Dips More Than Broader Markets: What You Should Know
In the latest trading session, Home Depot (HD - Free Report) closed at $328.76, marking a -0.33% move from the previous day. This change lagged the S&P 500's 0.09% loss on the day.
Coming into today, shares of the home-improvement retailer had gained 2.41% in the past month. In that same time, the Retail-Wholesale sector lost 3.25%, while the S&P 500 gained 2.28%.
Wall Street will be looking for positivity from HD as it approaches its next earnings report date. This is expected to be August 17, 2021. The company is expected to report EPS of $4.40, up 9.45% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $40.69 billion, up 6.92% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $14.10 per share and revenue of $143.55 billion. These totals would mark changes of +17.21% and +8.66%, 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 a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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. Over the past month, the Zacks Consensus EPS estimate has moved 0.41% lower. HD is holding a Zacks Rank of #4 (Sell) right now.
In terms of valuation, HD is currently trading at a Forward P/E ratio of 23.4. This represents a premium compared to its industry's average Forward P/E of 16.77.
Investors should also note that HD has a PEG ratio of 2.04 right now. 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 1.27 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 105, putting it in the top 42% 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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.