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Home Depot (HD) Surpasses Market Returns: Some Facts Worth Knowing
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In the latest market close, Home Depot (HD - Free Report) reached $347.93, with a +1.46% movement compared to the previous day. The stock's change was more than the S&P 500's daily gain of 1.41%. Elsewhere, the Dow gained 0.58%, while the tech-heavy Nasdaq added 2.2%.
The home-improvement retailer's stock has climbed by 5.04% in the past month, exceeding the Retail-Wholesale sector's gain of 2.51% and the S&P 500's gain of 2.9%.
Market participants will be closely following the financial results of Home Depot in its upcoming release. The company plans to announce its earnings on February 20, 2024. The company's upcoming EPS is projected at $2.75, signifying a 16.67% drop compared to the same quarter of the previous year. Meanwhile, our latest consensus estimate is calling for revenue of $34.55 billion, down 3.58% from the prior-year quarter.
Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $15.05 per share and revenue of $152.43 billion. These totals would mark changes of -9.83% and -3.16%, respectively, from last year.
Investors might also notice recent changes to analyst estimates for Home Depot. Recent revisions tend to reflect the latest 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. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
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 last 30 days, the Zacks Consensus EPS estimate has witnessed a 0.04% increase. As of now, Home Depot holds a Zacks Rank of #3 (Hold).
With respect to valuation, Home Depot is currently being traded at a Forward P/E ratio of 22.78. This represents a premium compared to its industry's average Forward P/E of 12.46.
One should further note that HD currently holds a PEG ratio of 2.55. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. The Building Products - Retail industry had an average PEG ratio of 2.03 as trading concluded yesterday.
The Building Products - Retail industry is part of the Retail-Wholesale sector. This industry currently has a Zacks Industry Rank of 194, which puts it in the bottom 24% 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.
Ensure to harness Zacks.com to stay updated with all these stock-shifting metrics, among others, in the next trading sessions.
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Home Depot (HD) Surpasses Market Returns: Some Facts Worth Knowing
In the latest market close, Home Depot (HD - Free Report) reached $347.93, with a +1.46% movement compared to the previous day. The stock's change was more than the S&P 500's daily gain of 1.41%. Elsewhere, the Dow gained 0.58%, while the tech-heavy Nasdaq added 2.2%.
The home-improvement retailer's stock has climbed by 5.04% in the past month, exceeding the Retail-Wholesale sector's gain of 2.51% and the S&P 500's gain of 2.9%.
Market participants will be closely following the financial results of Home Depot in its upcoming release. The company plans to announce its earnings on February 20, 2024. The company's upcoming EPS is projected at $2.75, signifying a 16.67% drop compared to the same quarter of the previous year. Meanwhile, our latest consensus estimate is calling for revenue of $34.55 billion, down 3.58% from the prior-year quarter.
Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $15.05 per share and revenue of $152.43 billion. These totals would mark changes of -9.83% and -3.16%, respectively, from last year.
Investors might also notice recent changes to analyst estimates for Home Depot. Recent revisions tend to reflect the latest 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. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
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 last 30 days, the Zacks Consensus EPS estimate has witnessed a 0.04% increase. As of now, Home Depot holds a Zacks Rank of #3 (Hold).
With respect to valuation, Home Depot is currently being traded at a Forward P/E ratio of 22.78. This represents a premium compared to its industry's average Forward P/E of 12.46.
One should further note that HD currently holds a PEG ratio of 2.55. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. The Building Products - Retail industry had an average PEG ratio of 2.03 as trading concluded yesterday.
The Building Products - Retail industry is part of the Retail-Wholesale sector. This industry currently has a Zacks Industry Rank of 194, which puts it in the bottom 24% 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.
Ensure to harness Zacks.com to stay updated with all these stock-shifting metrics, among others, in the next trading sessions.