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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 $301.89 in the latest trading session, marking a +0.86% move from the prior day. The stock outpaced the S&P 500's daily gain of 0.34%. At the same time, the Dow added 0.4%, and the tech-heavy Nasdaq lost 0.47%.
Heading into today, shares of the home-improvement retailer had lost 7.72% over the past month, lagging the Retail-Wholesale sector's gain of 1.91% and the S&P 500's gain of 3.75% in that time.
Investors will be hoping for strength from Home Depot as it approaches its next earnings release. The company is expected to report EPS of $3.67, down 4.92% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $36.59 billion, down 2.44% 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 might also notice recent changes to analyst estimates for Home Depot. These recent revisions tend to reflect the evolving nature of short-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about 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.
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 0.12% lower. Home Depot is currently a Zacks Rank #3 (Hold).
Looking at its valuation, Home Depot is holding a Forward P/E ratio of 18.66. This represents a premium compared to its industry's average Forward P/E of 11.91.
It is also worth noting that HD currently has a PEG ratio of 1.91. 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 17, putting 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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
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Home Depot (HD) Outpaces Stock Market Gains: What You Should Know
Home Depot (HD - Free Report) closed at $301.89 in the latest trading session, marking a +0.86% move from the prior day. The stock outpaced the S&P 500's daily gain of 0.34%. At the same time, the Dow added 0.4%, and the tech-heavy Nasdaq lost 0.47%.
Heading into today, shares of the home-improvement retailer had lost 7.72% over the past month, lagging the Retail-Wholesale sector's gain of 1.91% and the S&P 500's gain of 3.75% in that time.
Investors will be hoping for strength from Home Depot as it approaches its next earnings release. The company is expected to report EPS of $3.67, down 4.92% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $36.59 billion, down 2.44% 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 might also notice recent changes to analyst estimates for Home Depot. These recent revisions tend to reflect the evolving nature of short-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about 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.
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 0.12% lower. Home Depot is currently a Zacks Rank #3 (Hold).
Looking at its valuation, Home Depot is holding a Forward P/E ratio of 18.66. This represents a premium compared to its industry's average Forward P/E of 11.91.
It is also worth noting that HD currently has a PEG ratio of 1.91. 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 17, putting 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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.