Yahoo Finance Home Depot (HD) Gains As Market Dips: What You Should Know
In the latest trading session, Home Depot (HD) closed at $273.87, marking a +1.38% move from the previous day. This change outpaced the S&P 500's 0.07% loss on the day. Meanwhile, the Dow gained 0.27%, and the Nasdaq, a tech-heavy index, added 0.02%.
Coming into today, shares of the home-improvement retailer had lost 10.77% in the past month. In that same time, the Retail-Wholesale sector lost 4.41%, while the S&P 500 lost 7.99%.
Investors will be hoping for strength from Home Depot as it approaches its next earnings release. The company is expected to report EPS of $4.94, up 9.05% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $43.37 billion, up 5.48% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $16.47 per share and revenue of $155.76 billion. These totals would mark changes of +6.05% and +3.04%, respectively, from last year.
Any recent changes to analyst estimates for Home Depot should also be noted by investors. These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.
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 past month, the Zacks Consensus EPS estimate remained stagnant. Home Depot is currently sporting a Zacks Rank of #3 (Hold).
Digging into valuation, Home Depot currently has a Forward P/E ratio of 16.41. This valuation marks a premium compared to its industry's average Forward P/E of 7.91.
Also, we should mention that HD has a PEG ratio of 1.62. 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 1.62 as of yesterday's close.
The Building Products - Retail industry is part of the Retail-Wholesale sector. This group has a Zacks Industry Rank of 28, putting it in the top 12% of all 250+ industries.
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.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.
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The Home Depot, Inc. (HD) : Free Stock Analysis Report
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