We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Home Depot (HD) Surpasses Market Returns: Some Facts Worth Knowing
Read MoreHide Full Article
In the latest trading session, Home Depot (HD - Free Report) closed at $281.48, marking a +1.82% move from the previous day. The stock exceeded the S&P 500, which registered a gain of 1.2% for the day. On the other hand, the Dow registered a gain of 1.58%, and the technology-centric Nasdaq increased by 1.16%.
The the stock of home-improvement retailer has fallen by 8.51% in the past month, lagging the Retail-Wholesale sector's loss of 1.94% and the S&P 500's loss of 3.58%.
The investment community will be paying close attention to the earnings performance of Home Depot in its upcoming release. The company is slated to reveal its earnings on November 14, 2023. The company's earnings per share (EPS) are projected to be $3.80, reflecting a 10.38% decrease from the same quarter last year. Simultaneously, our latest consensus estimate expects the revenue to be $37.71 billion, showing a 3% drop compared to the year-ago quarter.
For the full year, the Zacks Consensus Estimates are projecting earnings of $15.23 per share and revenue of $153 billion, which would represent changes of -8.75% and -2.8%, respectively, from the prior year.
Investors should also pay attention to any latest changes in analyst estimates for Home Depot. Such recent modifications usually signify the changing landscape of near-term business trends. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the company's business health and profitability.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical rating system.
The Zacks Rank system, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 0.09% lower. At present, Home Depot boasts a Zacks Rank of #3 (Hold).
Looking at valuation, Home Depot is presently trading at a Forward P/E ratio of 18.15. This valuation marks a premium compared to its industry's average Forward P/E of 10.25.
Investors should also note that HD has a PEG ratio of 1.92 right now. 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 average PEG ratio for the Building Products - Retail industry stood at 1.74 at the close of the market yesterday.
The Building Products - Retail industry is part of the Retail-Wholesale sector. At present, this industry carries a Zacks Industry Rank of 77, placing it within the top 31% of over 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.
Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding trading sessions.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Home Depot (HD) Surpasses Market Returns: Some Facts Worth Knowing
In the latest trading session, Home Depot (HD - Free Report) closed at $281.48, marking a +1.82% move from the previous day. The stock exceeded the S&P 500, which registered a gain of 1.2% for the day. On the other hand, the Dow registered a gain of 1.58%, and the technology-centric Nasdaq increased by 1.16%.
The the stock of home-improvement retailer has fallen by 8.51% in the past month, lagging the Retail-Wholesale sector's loss of 1.94% and the S&P 500's loss of 3.58%.
The investment community will be paying close attention to the earnings performance of Home Depot in its upcoming release. The company is slated to reveal its earnings on November 14, 2023. The company's earnings per share (EPS) are projected to be $3.80, reflecting a 10.38% decrease from the same quarter last year. Simultaneously, our latest consensus estimate expects the revenue to be $37.71 billion, showing a 3% drop compared to the year-ago quarter.
For the full year, the Zacks Consensus Estimates are projecting earnings of $15.23 per share and revenue of $153 billion, which would represent changes of -8.75% and -2.8%, respectively, from the prior year.
Investors should also pay attention to any latest changes in analyst estimates for Home Depot. Such recent modifications usually signify the changing landscape of near-term business trends. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the company's business health and profitability.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical rating system.
The Zacks Rank system, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 0.09% lower. At present, Home Depot boasts a Zacks Rank of #3 (Hold).
Looking at valuation, Home Depot is presently trading at a Forward P/E ratio of 18.15. This valuation marks a premium compared to its industry's average Forward P/E of 10.25.
Investors should also note that HD has a PEG ratio of 1.92 right now. 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 average PEG ratio for the Building Products - Retail industry stood at 1.74 at the close of the market yesterday.
The Building Products - Retail industry is part of the Retail-Wholesale sector. At present, this industry carries a Zacks Industry Rank of 77, placing it within the top 31% of over 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.
Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding trading sessions.