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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 the most recent trading day at $410.84, moving +1.14% from the previous trading session. This change outpaced the S&P 500's 0.14% gain on the day. At the same time, the Dow added 0.25%, and the tech-heavy Nasdaq lost 0.34%.
Coming into today, shares of the home-improvement retailer had gained 1.4% in the past month. In that same time, the Retail-Wholesale sector lost 2.19%, while the S&P 500 gained 4.32%.
Investors will be hoping for strength from Home Depot as it approaches its next earnings release, which is expected to be February 22, 2022. The company is expected to report EPS of $3.22, up 17.52% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $34.68 billion, up 7.49% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $15.49 per share and revenue of $150.08 billion. These totals would mark changes of +28.76% and +13.6%, respectively, from last year.
Investors should also note any recent changes to analyst estimates for Home Depot. These recent revisions tend to reflect the evolving nature of short-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. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, 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. Within the past 30 days, our consensus EPS projection has moved 0.42% higher. Home Depot currently has a Zacks Rank of #1 (Strong Buy).
Looking at its valuation, Home Depot is holding a Forward P/E ratio of 26.23. Its industry sports an average Forward P/E of 15.92, so we one might conclude that Home Depot is trading at a premium comparatively.
Meanwhile, HD's PEG ratio is currently 2.14. 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 Building Products - Retail was holding an average PEG ratio of 1.85 at yesterday's closing price.
The Building Products - Retail industry is part of the Retail-Wholesale sector. This industry currently has a Zacks Industry Rank of 4, which puts it in the top 2% 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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Home Depot (HD) Outpaces Stock Market Gains: What You Should Know
Home Depot (HD - Free Report) closed the most recent trading day at $410.84, moving +1.14% from the previous trading session. This change outpaced the S&P 500's 0.14% gain on the day. At the same time, the Dow added 0.25%, and the tech-heavy Nasdaq lost 0.34%.
Coming into today, shares of the home-improvement retailer had gained 1.4% in the past month. In that same time, the Retail-Wholesale sector lost 2.19%, while the S&P 500 gained 4.32%.
Investors will be hoping for strength from Home Depot as it approaches its next earnings release, which is expected to be February 22, 2022. The company is expected to report EPS of $3.22, up 17.52% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $34.68 billion, up 7.49% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $15.49 per share and revenue of $150.08 billion. These totals would mark changes of +28.76% and +13.6%, respectively, from last year.
Investors should also note any recent changes to analyst estimates for Home Depot. These recent revisions tend to reflect the evolving nature of short-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. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, 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. Within the past 30 days, our consensus EPS projection has moved 0.42% higher. Home Depot currently has a Zacks Rank of #1 (Strong Buy).
Looking at its valuation, Home Depot is holding a Forward P/E ratio of 26.23. Its industry sports an average Forward P/E of 15.92, so we one might conclude that Home Depot is trading at a premium comparatively.
Meanwhile, HD's PEG ratio is currently 2.14. 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 Building Products - Retail was holding an average PEG ratio of 1.85 at yesterday's closing price.
The Building Products - Retail industry is part of the Retail-Wholesale sector. This industry currently has a Zacks Industry Rank of 4, which puts it in the top 2% 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.