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Home Depot (HD) Gains As Market Dips: What You Should Know
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In the latest trading session, Home Depot (HD - Free Report) closed at $329.59, marking a +1.37% move from the previous day. The stock outpaced the S&P 500's daily loss of 0.02%. Elsewhere, the Dow gained 0.23%, while the tech-heavy Nasdaq lost 0.12%.
Heading into today, shares of the home-improvement retailer had gained 3.63% over the past month, lagging the Retail-Wholesale sector's gain of 3.93% and the S&P 500's gain of 5.14% in that time.
Home Depot will be looking to display strength as it nears its next earnings release, which 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.
Investors might also notice recent changes to analyst estimates for Home Depot. These revisions help to show the ever-changing nature of near-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.
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 remained stagnant. Home Depot is currently sporting a Zacks Rank of #3 (Hold).
Valuation is also important, so investors should note that Home Depot has a Forward P/E ratio of 21.65 right now. For comparison, its industry has an average Forward P/E of 13.69, which means Home Depot is trading at a premium to the group.
Meanwhile, HD's PEG ratio is currently 2.49. 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. Building Products - Retail stocks are, on average, holding a PEG ratio of 2.49 based on yesterday's closing prices.
The Building Products - Retail industry is part of the Retail-Wholesale sector. This industry currently has a Zacks Industry Rank of 25, which puts it in the top 10% 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.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.
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Home Depot (HD) Gains As Market Dips: What You Should Know
In the latest trading session, Home Depot (HD - Free Report) closed at $329.59, marking a +1.37% move from the previous day. The stock outpaced the S&P 500's daily loss of 0.02%. Elsewhere, the Dow gained 0.23%, while the tech-heavy Nasdaq lost 0.12%.
Heading into today, shares of the home-improvement retailer had gained 3.63% over the past month, lagging the Retail-Wholesale sector's gain of 3.93% and the S&P 500's gain of 5.14% in that time.
Home Depot will be looking to display strength as it nears its next earnings release, which 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.
Investors might also notice recent changes to analyst estimates for Home Depot. These revisions help to show the ever-changing nature of near-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.
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 remained stagnant. Home Depot is currently sporting a Zacks Rank of #3 (Hold).
Valuation is also important, so investors should note that Home Depot has a Forward P/E ratio of 21.65 right now. For comparison, its industry has an average Forward P/E of 13.69, which means Home Depot is trading at a premium to the group.
Meanwhile, HD's PEG ratio is currently 2.49. 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. Building Products - Retail stocks are, on average, holding a PEG ratio of 2.49 based on yesterday's closing prices.
The Building Products - Retail industry is part of the Retail-Wholesale sector. This industry currently has a Zacks Industry Rank of 25, which puts it in the top 10% 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.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.