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Home Depot (HD) Gains But Lags Market: What You Should Know
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In the latest trading session, Home Depot (HD - Free Report) closed at $286.69, marking a +1.1% move from the previous day. The stock lagged the S&P 500's daily gain of 1.5%. At the same time, the Dow added 1.12%, and the tech-heavy Nasdaq gained 0.16%.
Coming into today, shares of the home-improvement retailer had lost 4.69% in the past month. In that same time, the Retail-Wholesale sector lost 3.84%, while the S&P 500 lost 6.54%.
Investors will be hoping for strength from Home Depot as it approaches its next earnings release, which is expected to be August 16, 2022. The company is expected to report EPS of $4.94, up 9.05% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $43.37 billion, up 5.48% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $16.47 per share and revenue of $155.76 billion, which would represent changes of +6.05% and +3.04%, respectively, from the prior year.
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. 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. 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 remained stagnant. Home Depot is currently a Zacks Rank #2 (Buy).
Digging into valuation, Home Depot currently has a Forward P/E ratio of 17.22. This valuation marks a premium compared to its industry's average Forward P/E of 8.07.
It is also worth noting that HD currently has a PEG ratio of 1.7. 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. The Building Products - Retail industry currently had an average PEG ratio of 1.7 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 44, putting it in the top 18% 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.
You can find more information on all of these metrics, and much more, on Zacks.com.
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Home Depot (HD) Gains But Lags Market: What You Should Know
In the latest trading session, Home Depot (HD - Free Report) closed at $286.69, marking a +1.1% move from the previous day. The stock lagged the S&P 500's daily gain of 1.5%. At the same time, the Dow added 1.12%, and the tech-heavy Nasdaq gained 0.16%.
Coming into today, shares of the home-improvement retailer had lost 4.69% in the past month. In that same time, the Retail-Wholesale sector lost 3.84%, while the S&P 500 lost 6.54%.
Investors will be hoping for strength from Home Depot as it approaches its next earnings release, which is expected to be August 16, 2022. The company is expected to report EPS of $4.94, up 9.05% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $43.37 billion, up 5.48% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $16.47 per share and revenue of $155.76 billion, which would represent changes of +6.05% and +3.04%, respectively, from the prior year.
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. 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. 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 remained stagnant. Home Depot is currently a Zacks Rank #2 (Buy).
Digging into valuation, Home Depot currently has a Forward P/E ratio of 17.22. This valuation marks a premium compared to its industry's average Forward P/E of 8.07.
It is also worth noting that HD currently has a PEG ratio of 1.7. 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. The Building Products - Retail industry currently had an average PEG ratio of 1.7 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 44, putting it in the top 18% 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.
You can find more information on all of these metrics, and much more, on Zacks.com.