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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 $315 in the latest trading session, marking a +1.33% move from the prior day. This change lagged the S&P 500's 1.89% gain on the day. Meanwhile, the Dow gained 1%, and the Nasdaq, a tech-heavy index, added 10%.
Heading into today, shares of the home-improvement retailer had lost 1.66% over the past month, lagging the Retail-Wholesale sector's gain of 5.52% and the S&P 500's gain of 2.3% in that time.
Wall Street will be looking for positivity from Home Depot as it approaches its next earnings report date. This is expected to be February 21, 2023. In that report, analysts expect Home Depot to post earnings of $3.28 per share. This would mark year-over-year growth of 2.18%. 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. Recent revisions tend to reflect the latest near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for 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. The Zacks Consensus EPS estimate remained stagnant within the past month. Home Depot is currently sporting a Zacks Rank of #4 (Sell).
Looking at its valuation, Home Depot is holding a Forward P/E ratio of 18.68. For comparison, its industry has an average Forward P/E of 10.36, which means Home Depot is trading at a premium to the group.
Meanwhile, HD's PEG ratio is currently 1.66. 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. Building Products - Retail stocks are, on average, holding a PEG ratio of 1.66 based on yesterday's closing prices.
The Building Products - Retail industry is part of the Retail-Wholesale sector. This industry currently has a Zacks Industry Rank of 216, which puts it in the bottom 15% of all 250+ industries.
The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. 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 $315 in the latest trading session, marking a +1.33% move from the prior day. This change lagged the S&P 500's 1.89% gain on the day. Meanwhile, the Dow gained 1%, and the Nasdaq, a tech-heavy index, added 10%.
Heading into today, shares of the home-improvement retailer had lost 1.66% over the past month, lagging the Retail-Wholesale sector's gain of 5.52% and the S&P 500's gain of 2.3% in that time.
Wall Street will be looking for positivity from Home Depot as it approaches its next earnings report date. This is expected to be February 21, 2023. In that report, analysts expect Home Depot to post earnings of $3.28 per share. This would mark year-over-year growth of 2.18%. 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. Recent revisions tend to reflect the latest near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for 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. The Zacks Consensus EPS estimate remained stagnant within the past month. Home Depot is currently sporting a Zacks Rank of #4 (Sell).
Looking at its valuation, Home Depot is holding a Forward P/E ratio of 18.68. For comparison, its industry has an average Forward P/E of 10.36, which means Home Depot is trading at a premium to the group.
Meanwhile, HD's PEG ratio is currently 1.66. 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. Building Products - Retail stocks are, on average, holding a PEG ratio of 1.66 based on yesterday's closing prices.
The Building Products - Retail industry is part of the Retail-Wholesale sector. This industry currently has a Zacks Industry Rank of 216, which puts it in the bottom 15% of all 250+ industries.
The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. 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.