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Home Depot (HD) Outpaces Stock Market Gains: What You Should Know
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Home Depot (HD - Free Report) closed at $177.29 in the latest trading session, marking a +0.23% move from the prior day. This move outpaced the S&P 500's daily gain of 0.14%. Meanwhile, the Dow lost 0.09%, and the Nasdaq, a tech-heavy index, added 0.68%.
Coming into today, shares of the home-improvement retailer had gained 5.12% in the past month. In that same time, the Retail-Wholesale sector gained 12.89%, while the S&P 500 gained 9.43%.
HD will be looking to display strength as it nears its next earnings release, which is expected to be February 19, 2019. The company is expected to report EPS of $2.17, up 28.4% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $26.59 billion, up 11.32% from the prior-year quarter.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $9.81 per share and revenue of $108.25 billion. These totals would mark changes of +31.5% and +7.28%, respectively, from last year.
Investors should also note any recent changes to analyst estimates for HD. These revisions help to show the ever-changing nature of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 0.01% higher. HD is currently a Zacks Rank #3 (Hold).
In terms of valuation, HD is currently trading at a Forward P/E ratio of 18.04. For comparison, its industry has an average Forward P/E of 11.18, which means HD is trading at a premium to the group.
Investors should also note that HD has a PEG ratio of 1.39 right now. 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 1.16 as of yesterday's close.
The Building Products - Retail industry is part of the Retail-Wholesale sector. This industry currently has a Zacks Industry Rank of 70, which puts it in the top 28% 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.
To follow HD in the coming trading sessions, be sure to utilize Zacks.com.
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Home Depot (HD) Outpaces Stock Market Gains: What You Should Know
Home Depot (HD - Free Report) closed at $177.29 in the latest trading session, marking a +0.23% move from the prior day. This move outpaced the S&P 500's daily gain of 0.14%. Meanwhile, the Dow lost 0.09%, and the Nasdaq, a tech-heavy index, added 0.68%.
Coming into today, shares of the home-improvement retailer had gained 5.12% in the past month. In that same time, the Retail-Wholesale sector gained 12.89%, while the S&P 500 gained 9.43%.
HD will be looking to display strength as it nears its next earnings release, which is expected to be February 19, 2019. The company is expected to report EPS of $2.17, up 28.4% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $26.59 billion, up 11.32% from the prior-year quarter.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $9.81 per share and revenue of $108.25 billion. These totals would mark changes of +31.5% and +7.28%, respectively, from last year.
Investors should also note any recent changes to analyst estimates for HD. These revisions help to show the ever-changing nature of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 0.01% higher. HD is currently a Zacks Rank #3 (Hold).
In terms of valuation, HD is currently trading at a Forward P/E ratio of 18.04. For comparison, its industry has an average Forward P/E of 11.18, which means HD is trading at a premium to the group.
Investors should also note that HD has a PEG ratio of 1.39 right now. 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 1.16 as of yesterday's close.
The Building Products - Retail industry is part of the Retail-Wholesale sector. This industry currently has a Zacks Industry Rank of 70, which puts it in the top 28% 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.
To follow HD in the coming trading sessions, be sure to utilize Zacks.com.