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Home Depot (HD) Dips More Than Broader Markets: What You Should Know
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In the latest trading session, Home Depot (HD - Free Report) closed at $318.43, marking a -1.58% move from the previous day. This change lagged the S&P 500's daily loss of 0.03%. Meanwhile, the Dow lost 0.46%, and the Nasdaq, a tech-heavy index, added 3.16%.
Coming into today, shares of the home-improvement retailer had lost 2.32% in the past month. In that same time, the Retail-Wholesale sector gained 0.38%, while the S&P 500 gained 3.6%.
Home Depot will be looking to display strength as it nears its next earnings release, which is expected to be February 21, 2023. The company is expected to report EPS of $3.26, up 1.56% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $35.97 billion, up 0.71% from the year-ago period.
Investors should also note any recent changes to analyst estimates for Home Depot. These revisions typically reflect the latest short-term business trends, which can change frequently. 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. Over the past month, the Zacks Consensus EPS estimate has moved 0.54% 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 19.1. For comparison, its industry has an average Forward P/E of 12.04, which means Home Depot is trading at a premium to the group.
It is also worth noting that HD currently has a PEG ratio of 1.7. 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 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 industry currently has a Zacks Industry Rank of 167, which puts it in the bottom 34% 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.
To follow HD in the coming trading sessions, be sure to utilize Zacks.com.
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Home Depot (HD) Dips More Than Broader Markets: What You Should Know
In the latest trading session, Home Depot (HD - Free Report) closed at $318.43, marking a -1.58% move from the previous day. This change lagged the S&P 500's daily loss of 0.03%. Meanwhile, the Dow lost 0.46%, and the Nasdaq, a tech-heavy index, added 3.16%.
Coming into today, shares of the home-improvement retailer had lost 2.32% in the past month. In that same time, the Retail-Wholesale sector gained 0.38%, while the S&P 500 gained 3.6%.
Home Depot will be looking to display strength as it nears its next earnings release, which is expected to be February 21, 2023. The company is expected to report EPS of $3.26, up 1.56% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $35.97 billion, up 0.71% from the year-ago period.
Investors should also note any recent changes to analyst estimates for Home Depot. These revisions typically reflect the latest short-term business trends, which can change frequently. 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. Over the past month, the Zacks Consensus EPS estimate has moved 0.54% 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 19.1. For comparison, its industry has an average Forward P/E of 12.04, which means Home Depot is trading at a premium to the group.
It is also worth noting that HD currently has a PEG ratio of 1.7. 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 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 industry currently has a Zacks Industry Rank of 167, which puts it in the bottom 34% 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.
To follow HD in the coming trading sessions, be sure to utilize Zacks.com.