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Home Depot (HD) Sees a More Significant Dip Than Broader Market: Some Facts to Know
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Home Depot (HD - Free Report) ended the recent trading session at $291.70, demonstrating a -0.24% swing from the preceding day's closing price. The stock trailed the S&P 500, which registered a daily loss of 0.13%. Meanwhile, the Dow experienced a drop of 0.03%, and the technology-dominated Nasdaq saw a decrease of 0.12%.
The home-improvement retailer's stock has dropped by 10.31% in the past month, falling short of the Retail-Wholesale sector's loss of 7.03% and the S&P 500's loss of 5.53%.
Market participants will be closely following the financial results of Home Depot in its upcoming release. The company plans to announce its earnings on November 14, 2023. In that report, analysts expect Home Depot to post earnings of $3.81 per share. This would mark a year-over-year decline of 10.14%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $37.71 billion, down 3% from the year-ago period.
For the full year, the Zacks Consensus Estimates project earnings of $15.24 per share and a revenue of $153 billion, demonstrating changes of -8.69% and -2.8%, respectively, from the preceding year.
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. Hence, positive alterations in estimates signify analyst optimism regarding the company's business and profitability.
Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.
The Zacks Rank system, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has shifted 0.02% upward. Home Depot is holding a Zacks Rank of #3 (Hold) right now.
In the context of valuation, Home Depot is at present trading with a Forward P/E ratio of 19.18. This represents a premium compared to its industry's average Forward P/E of 11.11.
Investors should also note that HD has a PEG ratio of 2.02 right now. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. As the market closed yesterday, the Building Products - Retail industry was having an average PEG ratio of 1.86.
The Building Products - Retail industry is part of the Retail-Wholesale sector. With its current Zacks Industry Rank of 79, this industry ranks in the top 32% of all industries, numbering over 250.
The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in 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) Sees a More Significant Dip Than Broader Market: Some Facts to Know
Home Depot (HD - Free Report) ended the recent trading session at $291.70, demonstrating a -0.24% swing from the preceding day's closing price. The stock trailed the S&P 500, which registered a daily loss of 0.13%. Meanwhile, the Dow experienced a drop of 0.03%, and the technology-dominated Nasdaq saw a decrease of 0.12%.
The home-improvement retailer's stock has dropped by 10.31% in the past month, falling short of the Retail-Wholesale sector's loss of 7.03% and the S&P 500's loss of 5.53%.
Market participants will be closely following the financial results of Home Depot in its upcoming release. The company plans to announce its earnings on November 14, 2023. In that report, analysts expect Home Depot to post earnings of $3.81 per share. This would mark a year-over-year decline of 10.14%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $37.71 billion, down 3% from the year-ago period.
For the full year, the Zacks Consensus Estimates project earnings of $15.24 per share and a revenue of $153 billion, demonstrating changes of -8.69% and -2.8%, respectively, from the preceding year.
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. Hence, positive alterations in estimates signify analyst optimism regarding the company's business and profitability.
Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.
The Zacks Rank system, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has shifted 0.02% upward. Home Depot is holding a Zacks Rank of #3 (Hold) right now.
In the context of valuation, Home Depot is at present trading with a Forward P/E ratio of 19.18. This represents a premium compared to its industry's average Forward P/E of 11.11.
Investors should also note that HD has a PEG ratio of 2.02 right now. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. As the market closed yesterday, the Building Products - Retail industry was having an average PEG ratio of 1.86.
The Building Products - Retail industry is part of the Retail-Wholesale sector. With its current Zacks Industry Rank of 79, this industry ranks in the top 32% of all industries, numbering over 250.
The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in 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.