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Home Depot (HD) Gains As Market Dips: What You Should Know
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Home Depot (HD - Free Report) closed at $328.21 in the latest trading session, marking a +0.12% move from the prior day. The stock outpaced the S&P 500's daily loss of 0.7%. Meanwhile, the Dow lost 0.54%, and the Nasdaq, a tech-heavy index, lost 1.17%.
Heading into today, shares of the home-improvement retailer had gained 4.51% over the past month, lagging the Retail-Wholesale sector's gain of 5.69% and outpacing the S&P 500's gain of 2.35% in that time.
Investors will be hoping for strength from Home Depot as it approaches 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%. Our most recent consensus estimate is calling for quarterly revenue of $42.24 billion, down 3.54% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $14.96 per share and revenue of $151.79 billion. These totals would mark changes of -10.37% and -3.57%, 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. 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 has moved 0.04% lower. Home Depot currently has a Zacks Rank of #3 (Hold).
Valuation is also important, so investors should note that Home Depot has a Forward P/E ratio of 21.91 right now. For comparison, its industry has an average Forward P/E of 11.98, which means Home Depot is trading at a premium to the group.
We can also see that HD currently has a PEG ratio of 2.52. 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. HD's industry had an average PEG ratio of 2.52 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 20, 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) Gains As Market Dips: What You Should Know
Home Depot (HD - Free Report) closed at $328.21 in the latest trading session, marking a +0.12% move from the prior day. The stock outpaced the S&P 500's daily loss of 0.7%. Meanwhile, the Dow lost 0.54%, and the Nasdaq, a tech-heavy index, lost 1.17%.
Heading into today, shares of the home-improvement retailer had gained 4.51% over the past month, lagging the Retail-Wholesale sector's gain of 5.69% and outpacing the S&P 500's gain of 2.35% in that time.
Investors will be hoping for strength from Home Depot as it approaches 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%. Our most recent consensus estimate is calling for quarterly revenue of $42.24 billion, down 3.54% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $14.96 per share and revenue of $151.79 billion. These totals would mark changes of -10.37% and -3.57%, 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. 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 has moved 0.04% lower. Home Depot currently has a Zacks Rank of #3 (Hold).
Valuation is also important, so investors should note that Home Depot has a Forward P/E ratio of 21.91 right now. For comparison, its industry has an average Forward P/E of 11.98, which means Home Depot is trading at a premium to the group.
We can also see that HD currently has a PEG ratio of 2.52. 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. HD's industry had an average PEG ratio of 2.52 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 20, 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.