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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 the most recent trading day at $310.42, moving +1.35% from the previous trading session. The stock outpaced the S&P 500's daily gain of 1.12%. Meanwhile, the Dow gained 1.01%, and the Nasdaq, a tech-heavy index, lost 0.08%.
Prior to today's trading, shares of the home-improvement retailer had lost 6.77% over the past month. This has lagged the Retail-Wholesale sector's gain of 5.08% and the S&P 500's gain of 4.63% in that time.
Home Depot will be looking to display strength as it nears its next earnings release. The company is expected to report EPS of $3.67, down 4.92% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $36.59 billion, down 2.44% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $16 per share and revenue of $153.1 billion. These totals would mark changes of +3.03% and +1.29%, respectively, from last year.
It is also important to note the recent changes to analyst estimates for Home Depot. These recent revisions tend to reflect the evolving nature of short-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
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 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 0.26% lower within the past month. Home Depot currently has a Zacks Rank of #3 (Hold).
In terms of valuation, Home Depot is currently trading at a Forward P/E ratio of 19.14. Its industry sports an average Forward P/E of 10.79, 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 1.96 right now. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. HD's industry had an average PEG ratio of 1.59 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 30, putting it in the top 12% 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.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.
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Home Depot (HD) Outpaces Stock Market Gains: What You Should Know
Home Depot (HD - Free Report) closed the most recent trading day at $310.42, moving +1.35% from the previous trading session. The stock outpaced the S&P 500's daily gain of 1.12%. Meanwhile, the Dow gained 1.01%, and the Nasdaq, a tech-heavy index, lost 0.08%.
Prior to today's trading, shares of the home-improvement retailer had lost 6.77% over the past month. This has lagged the Retail-Wholesale sector's gain of 5.08% and the S&P 500's gain of 4.63% in that time.
Home Depot will be looking to display strength as it nears its next earnings release. The company is expected to report EPS of $3.67, down 4.92% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $36.59 billion, down 2.44% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $16 per share and revenue of $153.1 billion. These totals would mark changes of +3.03% and +1.29%, respectively, from last year.
It is also important to note the recent changes to analyst estimates for Home Depot. These recent revisions tend to reflect the evolving nature of short-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
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 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 0.26% lower within the past month. Home Depot currently has a Zacks Rank of #3 (Hold).
In terms of valuation, Home Depot is currently trading at a Forward P/E ratio of 19.14. Its industry sports an average Forward P/E of 10.79, 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 1.96 right now. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. HD's industry had an average PEG ratio of 1.59 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 30, putting it in the top 12% 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.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.