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Home Depot (HD) Dips More Than Broader Markets: What You Should Know
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Home Depot (HD - Free Report) closed at $297.70 in the latest trading session, marking a -0.94% move from the prior day. This change lagged the S&P 500's daily loss of 0.04%. Elsewhere, the Dow lost 0.14%, while the tech-heavy Nasdaq added 2.14%.
Coming into today, shares of the home-improvement retailer had gained 1.84% in the past month. In that same time, the Retail-Wholesale sector gained 4.29%, while the S&P 500 gained 5.1%.
Wall Street will be looking for positivity from Home Depot as it approaches its next earnings report date. This is expected to be May 16, 2023. On that day, Home Depot is projected to report earnings of $3.85 per share, which would represent a year-over-year decline of 5.87%. Our most recent consensus estimate is calling for quarterly revenue of $38.73 billion, down 0.47% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $15.84 per share and revenue of $157.23 billion. These totals would mark changes of -5.09% and -0.11%, respectively, from last year.
It is also important to note the recent changes to analyst estimates for Home Depot. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Within the past 30 days, our consensus EPS projection has moved 0.1% lower. Home Depot is currently a Zacks Rank #4 (Sell).
Valuation is also important, so investors should note that Home Depot has a Forward P/E ratio of 18.98 right now. For comparison, its industry has an average Forward P/E of 13.56, which means Home Depot is trading at a premium to the group.
Also, we should mention that HD has a PEG ratio of 1.76. 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 1.76 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 26, which puts it in the top 11% of all 250+ industries.
The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. 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) Dips More Than Broader Markets: What You Should Know
Home Depot (HD - Free Report) closed at $297.70 in the latest trading session, marking a -0.94% move from the prior day. This change lagged the S&P 500's daily loss of 0.04%. Elsewhere, the Dow lost 0.14%, while the tech-heavy Nasdaq added 2.14%.
Coming into today, shares of the home-improvement retailer had gained 1.84% in the past month. In that same time, the Retail-Wholesale sector gained 4.29%, while the S&P 500 gained 5.1%.
Wall Street will be looking for positivity from Home Depot as it approaches its next earnings report date. This is expected to be May 16, 2023. On that day, Home Depot is projected to report earnings of $3.85 per share, which would represent a year-over-year decline of 5.87%. Our most recent consensus estimate is calling for quarterly revenue of $38.73 billion, down 0.47% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $15.84 per share and revenue of $157.23 billion. These totals would mark changes of -5.09% and -0.11%, respectively, from last year.
It is also important to note the recent changes to analyst estimates for Home Depot. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Within the past 30 days, our consensus EPS projection has moved 0.1% lower. Home Depot is currently a Zacks Rank #4 (Sell).
Valuation is also important, so investors should note that Home Depot has a Forward P/E ratio of 18.98 right now. For comparison, its industry has an average Forward P/E of 13.56, which means Home Depot is trading at a premium to the group.
Also, we should mention that HD has a PEG ratio of 1.76. 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 1.76 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 26, which puts it in the top 11% of all 250+ industries.
The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. 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.