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Home Depot (HD) Sees a More Significant Dip Than Broader Market: Some Facts to Know
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Home Depot (HD - Free Report) ended the recent trading session at $295.94, demonstrating a -0.47% swing from the preceding day's closing price. This change lagged the S&P 500's daily loss of 0.01%. Elsewhere, the Dow gained 0.04%, while the tech-heavy Nasdaq lost 0.25%.
Prior to today's trading, shares of the home-improvement retailer had lost 6.28% over the past month. This has lagged the Retail-Wholesale sector's loss of 4.66% and the S&P 500's loss of 1.6% in that time.
The investment community will be closely monitoring the performance of Home Depot in its forthcoming earnings report. The company is scheduled to release its earnings on November 14, 2023. On that day, Home Depot is projected to report earnings of $3.80 per share, which would represent a year-over-year decline of 10.38%. Alongside, our most recent consensus estimate is anticipating revenue of $37.71 billion, indicating a 3% downward movement from the same quarter last year.
Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $15.24 per share and revenue of $153 billion. These totals would mark changes of -8.69% and -2.8%, respectively, from last year.
It's also important for investors to be aware of any recent modifications to analyst estimates for Home Depot. These revisions help to show the ever-changing nature of near-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the company's business and profitability.
Our research shows that these estimate changes are directly correlated with near-term stock prices. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.
The Zacks Rank system, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 0.04% lower. Home Depot is currently sporting a Zacks Rank of #3 (Hold).
In terms of valuation, Home Depot is presently being traded at a Forward P/E ratio of 19.51. Its industry sports an average Forward P/E of 10.89, so one might conclude that Home Depot is trading at a premium comparatively.
Meanwhile, HD's PEG ratio is currently 2.06. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. As of the close of trade yesterday, the Building Products - Retail industry held an average PEG ratio of 1.86.
The Building Products - Retail industry is part of the Retail-Wholesale sector. With its current Zacks Industry Rank of 80, this industry ranks in the top 32% of all industries, numbering over 250.
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.
Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding trading sessions.
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Home Depot (HD) Sees a More Significant Dip Than Broader Market: Some Facts to Know
Home Depot (HD - Free Report) ended the recent trading session at $295.94, demonstrating a -0.47% swing from the preceding day's closing price. This change lagged the S&P 500's daily loss of 0.01%. Elsewhere, the Dow gained 0.04%, while the tech-heavy Nasdaq lost 0.25%.
Prior to today's trading, shares of the home-improvement retailer had lost 6.28% over the past month. This has lagged the Retail-Wholesale sector's loss of 4.66% and the S&P 500's loss of 1.6% in that time.
The investment community will be closely monitoring the performance of Home Depot in its forthcoming earnings report. The company is scheduled to release its earnings on November 14, 2023. On that day, Home Depot is projected to report earnings of $3.80 per share, which would represent a year-over-year decline of 10.38%. Alongside, our most recent consensus estimate is anticipating revenue of $37.71 billion, indicating a 3% downward movement from the same quarter last year.
Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $15.24 per share and revenue of $153 billion. These totals would mark changes of -8.69% and -2.8%, respectively, from last year.
It's also important for investors to be aware of any recent modifications to analyst estimates for Home Depot. These revisions help to show the ever-changing nature of near-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the company's business and profitability.
Our research shows that these estimate changes are directly correlated with near-term stock prices. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.
The Zacks Rank system, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 0.04% lower. Home Depot is currently sporting a Zacks Rank of #3 (Hold).
In terms of valuation, Home Depot is presently being traded at a Forward P/E ratio of 19.51. Its industry sports an average Forward P/E of 10.89, so one might conclude that Home Depot is trading at a premium comparatively.
Meanwhile, HD's PEG ratio is currently 2.06. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. As of the close of trade yesterday, the Building Products - Retail industry held an average PEG ratio of 1.86.
The Building Products - Retail industry is part of the Retail-Wholesale sector. With its current Zacks Industry Rank of 80, this industry ranks in the top 32% of all industries, numbering over 250.
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.
Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding trading sessions.