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Home Depot (HD) Stock Sinks As Market Gains: What You Should Know
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Home Depot (HD - Free Report) closed the most recent trading day at $314.60, moving -0.92% from the previous trading session. This change lagged the S&P 500's 0.85% gain on the day. At the same time, the Dow added 0.14%, and the tech-heavy Nasdaq gained 5.61%.
Heading into today, shares of the home-improvement retailer had gained 5.94% over the past month, outpacing the Retail-Wholesale sector's gain of 3.78% and the S&P 500's gain of 3.18% in that time.
Wall Street will be looking for positivity from Home Depot as it approaches its next earnings report date. This is expected to be August 15, 2023. 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%. Meanwhile, our latest consensus estimate is calling for revenue of $42.24 billion, down 3.54% from the prior-year quarter.
HD's full-year Zacks Consensus Estimates are calling for earnings of $15.02 per share and revenue of $151.86 billion. These results would represent year-over-year changes of -10.01% and -3.52%, respectively.
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. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
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.
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. The Zacks Consensus EPS estimate has moved 0.03% lower within the past month. Home Depot is currently a Zacks Rank #3 (Hold).
Investors should also note Home Depot's current valuation metrics, including its Forward P/E ratio of 21.14. For comparison, its industry has an average Forward P/E of 13.57, 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 2.06. 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 2.06 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 21, which puts it in the top 9% 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) Stock Sinks As Market Gains: What You Should Know
Home Depot (HD - Free Report) closed the most recent trading day at $314.60, moving -0.92% from the previous trading session. This change lagged the S&P 500's 0.85% gain on the day. At the same time, the Dow added 0.14%, and the tech-heavy Nasdaq gained 5.61%.
Heading into today, shares of the home-improvement retailer had gained 5.94% over the past month, outpacing the Retail-Wholesale sector's gain of 3.78% and the S&P 500's gain of 3.18% in that time.
Wall Street will be looking for positivity from Home Depot as it approaches its next earnings report date. This is expected to be August 15, 2023. 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%. Meanwhile, our latest consensus estimate is calling for revenue of $42.24 billion, down 3.54% from the prior-year quarter.
HD's full-year Zacks Consensus Estimates are calling for earnings of $15.02 per share and revenue of $151.86 billion. These results would represent year-over-year changes of -10.01% and -3.52%, respectively.
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. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
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.
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. The Zacks Consensus EPS estimate has moved 0.03% lower within the past month. Home Depot is currently a Zacks Rank #3 (Hold).
Investors should also note Home Depot's current valuation metrics, including its Forward P/E ratio of 21.14. For comparison, its industry has an average Forward P/E of 13.57, 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 2.06. 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 2.06 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 21, which puts it in the top 9% 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.