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Home Depot (HD) Falls More Steeply Than Broader Market: What Investors Need to Know
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Home Depot (HD - Free Report) closed the most recent trading day at $395.14, moving -0.25% from the previous trading session. This move lagged the S&P 500's daily loss of 0.04%. Meanwhile, the Dow gained 0.07%, and the Nasdaq, a tech-heavy index, lost 0.05%.
Shares of the home-improvement retailer witnessed a loss of 7.27% over the previous month, trailing the performance of the Retail-Wholesale sector with its gain of 2.87% and the S&P 500's gain of 1.05%.
Market participants will be closely following the financial results of Home Depot in its upcoming release. On that day, Home Depot is projected to report earnings of $3.01 per share, which would represent year-over-year growth of 6.74%. At the same time, our most recent consensus estimate is projecting a revenue of $38.81 billion, reflecting a 11.56% rise from the equivalent quarter last year.
Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $15.12 per share and revenue of $158.62 billion, indicating changes of +0.07% and +3.9%, respectively, compared to the previous year.
Additionally, investors should keep an eye on any recent revisions to analyst forecasts 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 reveals that these estimate alterations are directly linked with the stock price performance in the near future. 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, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. Over the past month, there's been no change in the Zacks Consensus EPS estimate. Home Depot presently features a Zacks Rank of #3 (Hold).
In terms of valuation, Home Depot is presently being traded at a Forward P/E ratio of 26.2. This represents a premium compared to its industry's average Forward P/E of 22.65.
It's also important to note that HD currently trades at a PEG ratio of 4.17. 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. The average PEG ratio for the Retail - Home Furnishings industry stood at 2.17 at the close of the market yesterday.
The Retail - Home Furnishings industry is part of the Retail-Wholesale sector. With its current Zacks Industry Rank of 199, this industry ranks in the bottom 21% of all industries, numbering over 250.
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) Falls More Steeply Than Broader Market: What Investors Need to Know
Home Depot (HD - Free Report) closed the most recent trading day at $395.14, moving -0.25% from the previous trading session. This move lagged the S&P 500's daily loss of 0.04%. Meanwhile, the Dow gained 0.07%, and the Nasdaq, a tech-heavy index, lost 0.05%.
Shares of the home-improvement retailer witnessed a loss of 7.27% over the previous month, trailing the performance of the Retail-Wholesale sector with its gain of 2.87% and the S&P 500's gain of 1.05%.
Market participants will be closely following the financial results of Home Depot in its upcoming release. On that day, Home Depot is projected to report earnings of $3.01 per share, which would represent year-over-year growth of 6.74%. At the same time, our most recent consensus estimate is projecting a revenue of $38.81 billion, reflecting a 11.56% rise from the equivalent quarter last year.
Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $15.12 per share and revenue of $158.62 billion, indicating changes of +0.07% and +3.9%, respectively, compared to the previous year.
Additionally, investors should keep an eye on any recent revisions to analyst forecasts 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 reveals that these estimate alterations are directly linked with the stock price performance in the near future. 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, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. Over the past month, there's been no change in the Zacks Consensus EPS estimate. Home Depot presently features a Zacks Rank of #3 (Hold).
In terms of valuation, Home Depot is presently being traded at a Forward P/E ratio of 26.2. This represents a premium compared to its industry's average Forward P/E of 22.65.
It's also important to note that HD currently trades at a PEG ratio of 4.17. 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. The average PEG ratio for the Retail - Home Furnishings industry stood at 2.17 at the close of the market yesterday.
The Retail - Home Furnishings industry is part of the Retail-Wholesale sector. With its current Zacks Industry Rank of 199, this industry ranks in the bottom 21% of all industries, numbering over 250.
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.