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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 $313.74 in the latest trading session, marking a +1.9% move from the prior day. This change outpaced the S&P 500's 1.15% gain on the day. Meanwhile, the Dow gained 0.63%, and the Nasdaq, a tech-heavy index, added 7.23%.
Heading into today, shares of the home-improvement retailer had gained 5.14% over the past month, outpacing the Retail-Wholesale sector's gain of 4.03% and the S&P 500's gain of 3.08% in that time.
Investors will be hoping for strength from Home Depot as it approaches its next earnings release. In that report, analysts expect Home Depot to post earnings of $4.46 per share. This would mark a year-over-year decline of 11.68%. Our most recent consensus estimate is calling for quarterly revenue of $42.24 billion, down 3.54% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $15.02 per share and revenue of $151.86 billion, which would represent changes of -10.01% and -3.52%, respectively, from the prior year.
Investors should also note any recent changes to analyst estimates for Home Depot. These revisions help to show the ever-changing nature of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
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.
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 0.07% lower. Home Depot is currently sporting a Zacks Rank of #3 (Hold).
In terms of valuation, Home Depot is currently trading at a Forward P/E ratio of 20.5. This valuation marks a premium compared to its industry's average Forward P/E of 12.67.
Also, we should mention that HD has a PEG ratio of 1.99. 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. HD's industry had an average PEG ratio of 1.99 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 18, putting it in the top 8% 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.
To follow HD in the coming trading sessions, be sure to utilize Zacks.com.
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Home Depot (HD) Outpaces Stock Market Gains: What You Should Know
Home Depot (HD - Free Report) closed at $313.74 in the latest trading session, marking a +1.9% move from the prior day. This change outpaced the S&P 500's 1.15% gain on the day. Meanwhile, the Dow gained 0.63%, and the Nasdaq, a tech-heavy index, added 7.23%.
Heading into today, shares of the home-improvement retailer had gained 5.14% over the past month, outpacing the Retail-Wholesale sector's gain of 4.03% and the S&P 500's gain of 3.08% in that time.
Investors will be hoping for strength from Home Depot as it approaches its next earnings release. In that report, analysts expect Home Depot to post earnings of $4.46 per share. This would mark a year-over-year decline of 11.68%. Our most recent consensus estimate is calling for quarterly revenue of $42.24 billion, down 3.54% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $15.02 per share and revenue of $151.86 billion, which would represent changes of -10.01% and -3.52%, respectively, from the prior year.
Investors should also note any recent changes to analyst estimates for Home Depot. These revisions help to show the ever-changing nature of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
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.
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 0.07% lower. Home Depot is currently sporting a Zacks Rank of #3 (Hold).
In terms of valuation, Home Depot is currently trading at a Forward P/E ratio of 20.5. This valuation marks a premium compared to its industry's average Forward P/E of 12.67.
Also, we should mention that HD has a PEG ratio of 1.99. 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. HD's industry had an average PEG ratio of 1.99 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 18, putting it in the top 8% 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.
To follow HD in the coming trading sessions, be sure to utilize Zacks.com.