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Home Depot (HD) Rises As Market Takes a Dip: Key Facts

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In the latest trading session, Home Depot (HD - Free Report) closed at $395.57, marking a +0.76% move from the previous day. This move outpaced the S&P 500's daily loss of 0.28%. At the same time, the Dow lost 0.61%, and the tech-heavy Nasdaq lost 0.33%.

Heading into today, shares of the home-improvement retailer had lost 3.86% over the past month, lagging the Retail-Wholesale sector's gain of 1.01% and the S&P 500's gain of 0.41% in that time.

The upcoming earnings release of Home Depot will be of great interest to investors. The company's earnings report is expected on November 12, 2024. It is anticipated that the company will report an EPS of $3.64, marking a 4.46% fall compared to the same quarter of the previous year. In the meantime, our current consensus estimate forecasts the revenue to be $39.23 billion, indicating a 4.04% growth compared to the corresponding quarter of the prior year.

Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $15.01 per share and revenue of $157.51 billion, indicating changes of -0.66% and +3.17%, respectively, compared to the previous year.

Investors might also notice recent changes to analyst estimates for Home Depot. These latest adjustments often mirror the shifting dynamics of short-term business patterns. Therefore, positive revisions in estimates convey analysts' confidence in the company's business performance and profit potential.

Our research shows that these estimate changes are directly correlated with near-term stock prices. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational rating system.

The Zacks Rank system, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 0.03% higher. Home Depot currently has a Zacks Rank of #3 (Hold).

In the context of valuation, Home Depot is at present trading with a Forward P/E ratio of 26.16. This represents a premium compared to its industry's average Forward P/E of 19.82.

Also, we should mention that HD has a PEG ratio of 2.72. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. Building Products - Retail stocks are, on average, holding a PEG ratio of 3.65 based on yesterday's closing prices.

The Building Products - Retail industry is part of the Retail-Wholesale sector. This group has a Zacks Industry Rank of 185, putting it in the bottom 27% of all 250+ industries.

The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding trading sessions.


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