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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 at $329.87 in the latest trading session, marking a +0.26% move from the prior day. This move lagged the S&P 500's daily gain of 0.34%. Elsewhere, the Dow gained 0.64%, while the tech-heavy Nasdaq added 8.98%.
Prior to today's trading, shares of the home-improvement retailer had lost 1.33% over the past month. This has lagged the Retail-Wholesale sector's gain of 4.11% and the S&P 500's gain of 1% in that time.
Wall Street will be looking for positivity from Home Depot as it approaches its next earnings report date. The company is expected to report EPS of $3.28, up 2.18% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $35.97 billion, up 0.71% 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 $157.45 billion. These totals would mark changes of +7.15% and +4.16%, 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. With this in mind, we can consider positive estimate revisions a sign of optimism about 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.
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 remained stagnant. Home Depot is holding a Zacks Rank of #3 (Hold) right now.
Looking at its valuation, Home Depot is holding a Forward P/E ratio of 19.77. This represents a premium compared to its industry's average Forward P/E of 9.92.
Investors should also note that HD has a PEG ratio of 1.76 right now. 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 1.76 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 188, putting it in the bottom 26% 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.
To follow HD in the coming trading sessions, be sure to utilize Zacks.com.
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Home Depot (HD) Gains But Lags Market: What You Should Know
Home Depot (HD - Free Report) closed at $329.87 in the latest trading session, marking a +0.26% move from the prior day. This move lagged the S&P 500's daily gain of 0.34%. Elsewhere, the Dow gained 0.64%, while the tech-heavy Nasdaq added 8.98%.
Prior to today's trading, shares of the home-improvement retailer had lost 1.33% over the past month. This has lagged the Retail-Wholesale sector's gain of 4.11% and the S&P 500's gain of 1% in that time.
Wall Street will be looking for positivity from Home Depot as it approaches its next earnings report date. The company is expected to report EPS of $3.28, up 2.18% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $35.97 billion, up 0.71% 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 $157.45 billion. These totals would mark changes of +7.15% and +4.16%, 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. With this in mind, we can consider positive estimate revisions a sign of optimism about 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.
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 remained stagnant. Home Depot is holding a Zacks Rank of #3 (Hold) right now.
Looking at its valuation, Home Depot is holding a Forward P/E ratio of 19.77. This represents a premium compared to its industry's average Forward P/E of 9.92.
Investors should also note that HD has a PEG ratio of 1.76 right now. 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 1.76 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 188, putting it in the bottom 26% 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.
To follow HD in the coming trading sessions, be sure to utilize Zacks.com.