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Home Depot (HD) Gains But Lags Market: What You Should Know
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Home Depot (HD - Free Report) closed the most recent trading day at $291.14, moving +0.3% from the previous trading session. The stock lagged the S&P 500's daily gain of 0.56%. Elsewhere, the Dow gained 1.02%, while the tech-heavy Nasdaq lost 0.04%.
Coming into today, shares of the home-improvement retailer had gained 2.77% in the past month. In that same time, the Retail-Wholesale sector lost 2.62%, while the S&P 500 gained 4.72%.
Home Depot will be looking to display strength as it nears its next earnings release, which is expected to be November 15, 2022. The company is expected to report EPS of $4.11, up 4.85% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $37.93 billion, up 3.02% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $16.64 per share and revenue of $156.58 billion. These totals would mark changes of +7.15% and +3.59%, 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. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 0.01% higher. Home Depot currently has a Zacks Rank of #3 (Hold).
Looking at its valuation, Home Depot is holding a Forward P/E ratio of 17.44. This valuation marks a premium compared to its industry's average Forward P/E of 8.07.
It is also worth noting that HD currently has a PEG ratio of 1.55. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. The Building Products - Retail industry currently had an average PEG ratio of 1.55 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 35, putting it in the top 14% 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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
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Home Depot (HD) Gains But Lags Market: What You Should Know
Home Depot (HD - Free Report) closed the most recent trading day at $291.14, moving +0.3% from the previous trading session. The stock lagged the S&P 500's daily gain of 0.56%. Elsewhere, the Dow gained 1.02%, while the tech-heavy Nasdaq lost 0.04%.
Coming into today, shares of the home-improvement retailer had gained 2.77% in the past month. In that same time, the Retail-Wholesale sector lost 2.62%, while the S&P 500 gained 4.72%.
Home Depot will be looking to display strength as it nears its next earnings release, which is expected to be November 15, 2022. The company is expected to report EPS of $4.11, up 4.85% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $37.93 billion, up 3.02% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $16.64 per share and revenue of $156.58 billion. These totals would mark changes of +7.15% and +3.59%, 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. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 0.01% higher. Home Depot currently has a Zacks Rank of #3 (Hold).
Looking at its valuation, Home Depot is holding a Forward P/E ratio of 17.44. This valuation marks a premium compared to its industry's average Forward P/E of 8.07.
It is also worth noting that HD currently has a PEG ratio of 1.55. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. The Building Products - Retail industry currently had an average PEG ratio of 1.55 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 35, putting it in the top 14% 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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.