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Home Depot (HD) Dips More Than Broader Markets: What You Should Know
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Home Depot (HD - Free Report) closed the most recent trading day at $357.35, moving -0.65% from the previous trading session. This move lagged the S&P 500's daily loss of 0.37%.
Coming into today, shares of the home-improvement retailer had lost 8.62% in the past month. In that same time, the Retail-Wholesale sector lost 6.95%, while the S&P 500 lost 6.01%.
Home Depot will be looking to display strength as it nears its next earnings release, which is expected to be February 22, 2022. On that day, Home Depot is projected to report earnings of $3.20 per share, which would represent year-over-year growth of 16.79%. Our most recent consensus estimate is calling for quarterly revenue of $34.61 billion, up 7.27% from the year-ago period.
Any recent changes to analyst estimates for Home Depot should also be noted by investors. These revisions typically reflect the latest short-term business trends, which can change frequently. 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. 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 0.64% lower. Home Depot is currently sporting a Zacks Rank of #4 (Sell).
In terms of valuation, Home Depot is currently trading at a Forward P/E ratio of 22.3. Its industry sports an average Forward P/E of 11.19, so we one might conclude that Home Depot is trading at a premium comparatively.
Investors should also note that HD has a PEG ratio of 1.82 right now. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. The Building Products - Retail was holding an average PEG ratio of 1.56 at yesterday's closing price.
The Building Products - Retail industry is part of the Retail-Wholesale sector. This group has a Zacks Industry Rank of 46, putting it in the top 19% of all 250+ industries.
The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. 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
Home Depot (HD - Free Report) closed the most recent trading day at $357.35, moving -0.65% from the previous trading session. This move lagged the S&P 500's daily loss of 0.37%.
Coming into today, shares of the home-improvement retailer had lost 8.62% in the past month. In that same time, the Retail-Wholesale sector lost 6.95%, while the S&P 500 lost 6.01%.
Home Depot will be looking to display strength as it nears its next earnings release, which is expected to be February 22, 2022. On that day, Home Depot is projected to report earnings of $3.20 per share, which would represent year-over-year growth of 16.79%. Our most recent consensus estimate is calling for quarterly revenue of $34.61 billion, up 7.27% from the year-ago period.
Any recent changes to analyst estimates for Home Depot should also be noted by investors. These revisions typically reflect the latest short-term business trends, which can change frequently. 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. 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 0.64% lower. Home Depot is currently sporting a Zacks Rank of #4 (Sell).
In terms of valuation, Home Depot is currently trading at a Forward P/E ratio of 22.3. Its industry sports an average Forward P/E of 11.19, so we one might conclude that Home Depot is trading at a premium comparatively.
Investors should also note that HD has a PEG ratio of 1.82 right now. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. The Building Products - Retail was holding an average PEG ratio of 1.56 at yesterday's closing price.
The Building Products - Retail industry is part of the Retail-Wholesale sector. This group has a Zacks Industry Rank of 46, putting it in the top 19% of all 250+ industries.
The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. 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.