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Home Depot (HD) Stock Sinks As Market Gains: What You Should Know
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In the latest trading session, Home Depot (HD - Free Report) closed at $315.78, marking a -0.4% move from the previous day. This change lagged the S&P 500's daily gain of 1.43%. Meanwhile, the Dow gained 1.02%, and the Nasdaq, a tech-heavy index, added 0.32%.
Coming into today, shares of the home-improvement retailer had gained 2.79% in the past month. In that same time, the Retail-Wholesale sector gained 6.49%, while the S&P 500 gained 5.65%.
Home Depot will be looking to display strength as it nears its next earnings release. In that report, analysts expect Home Depot to post earnings of $3.67 per share. This would mark a year-over-year decline of 4.92%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $36.5 billion, down 2.68% from the year-ago period.
HD's full-year Zacks Consensus Estimates are calling for earnings of $16.04 per share and revenue of $153.39 billion. These results would represent year-over-year changes of +3.28% and +1.48%, respectively.
Investors should also note any recent changes to analyst estimates for Home Depot. Recent revisions tend to reflect the latest near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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 ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 0.71% lower within the past month. Home Depot is holding a Zacks Rank of #3 (Hold) right now.
Investors should also note Home Depot's current valuation metrics, including its Forward P/E ratio of 19.76. This represents a premium compared to its industry's average Forward P/E of 12.19.
Also, we should mention that HD has a PEG ratio of 2.03. 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 1.7 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 9, which puts it in the top 4% 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.
You can find more information on all of these metrics, and much more, on Zacks.com.
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Home Depot (HD) Stock Sinks As Market Gains: What You Should Know
In the latest trading session, Home Depot (HD - Free Report) closed at $315.78, marking a -0.4% move from the previous day. This change lagged the S&P 500's daily gain of 1.43%. Meanwhile, the Dow gained 1.02%, and the Nasdaq, a tech-heavy index, added 0.32%.
Coming into today, shares of the home-improvement retailer had gained 2.79% in the past month. In that same time, the Retail-Wholesale sector gained 6.49%, while the S&P 500 gained 5.65%.
Home Depot will be looking to display strength as it nears its next earnings release. In that report, analysts expect Home Depot to post earnings of $3.67 per share. This would mark a year-over-year decline of 4.92%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $36.5 billion, down 2.68% from the year-ago period.
HD's full-year Zacks Consensus Estimates are calling for earnings of $16.04 per share and revenue of $153.39 billion. These results would represent year-over-year changes of +3.28% and +1.48%, respectively.
Investors should also note any recent changes to analyst estimates for Home Depot. Recent revisions tend to reflect the latest near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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 ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 0.71% lower within the past month. Home Depot is holding a Zacks Rank of #3 (Hold) right now.
Investors should also note Home Depot's current valuation metrics, including its Forward P/E ratio of 19.76. This represents a premium compared to its industry's average Forward P/E of 12.19.
Also, we should mention that HD has a PEG ratio of 2.03. 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 1.7 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 9, which puts it in the top 4% 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.
You can find more information on all of these metrics, and much more, on Zacks.com.