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Home Depot (HD) Stock Sinks As Market Gains: Here's Why
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Home Depot (HD - Free Report) closed at $359.90 in the latest trading session, marking a -0.85% move from the prior day. The stock trailed the S&P 500, which registered a daily gain of 0.11%. At the same time, the Dow lost 0.11%, and the tech-heavy Nasdaq gained 0.23%.
The home-improvement retailer's stock has dropped by 4.08% in the past month, falling short of the Retail-Wholesale sector's gain of 0.04% and the S&P 500's gain of 1.5%.
Market participants will be closely following the financial results of Home Depot in its upcoming release. It is anticipated that the company will report an EPS of $3.60, marking a 5.76% fall compared to the same quarter of the previous year. At the same time, our most recent consensus estimate is projecting a revenue of $36.66 billion, reflecting a 1.6% fall from the equivalent quarter last year.
In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $15.38 per share and a revenue of $154.53 billion, indicating changes of +1.79% and +1.22%, respectively, from the former year.
Investors should also take note of any recent adjustments to analyst estimates for Home Depot. Recent revisions tend to reflect the latest near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 0.14% lower. Home Depot is holding a Zacks Rank of #3 (Hold) right now.
In terms of valuation, Home Depot is currently trading at a Forward P/E ratio of 23.6. This signifies a premium in comparison to the average Forward P/E of 14.33 for its industry.
Meanwhile, HD's PEG ratio is currently 2.42. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. The Building Products - Retail industry currently had an average PEG ratio of 1.81 as of yesterday's close.
The Building Products - Retail industry is part of the Retail-Wholesale sector. With its current Zacks Industry Rank of 66, this industry ranks in the top 27% of all industries, numbering over 250.
The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.
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Home Depot (HD) Stock Sinks As Market Gains: Here's Why
Home Depot (HD - Free Report) closed at $359.90 in the latest trading session, marking a -0.85% move from the prior day. The stock trailed the S&P 500, which registered a daily gain of 0.11%. At the same time, the Dow lost 0.11%, and the tech-heavy Nasdaq gained 0.23%.
The home-improvement retailer's stock has dropped by 4.08% in the past month, falling short of the Retail-Wholesale sector's gain of 0.04% and the S&P 500's gain of 1.5%.
Market participants will be closely following the financial results of Home Depot in its upcoming release. It is anticipated that the company will report an EPS of $3.60, marking a 5.76% fall compared to the same quarter of the previous year. At the same time, our most recent consensus estimate is projecting a revenue of $36.66 billion, reflecting a 1.6% fall from the equivalent quarter last year.
In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $15.38 per share and a revenue of $154.53 billion, indicating changes of +1.79% and +1.22%, respectively, from the former year.
Investors should also take note of any recent adjustments to analyst estimates for Home Depot. Recent revisions tend to reflect the latest near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 0.14% lower. Home Depot is holding a Zacks Rank of #3 (Hold) right now.
In terms of valuation, Home Depot is currently trading at a Forward P/E ratio of 23.6. This signifies a premium in comparison to the average Forward P/E of 14.33 for its industry.
Meanwhile, HD's PEG ratio is currently 2.42. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. The Building Products - Retail industry currently had an average PEG ratio of 1.81 as of yesterday's close.
The Building Products - Retail industry is part of the Retail-Wholesale sector. With its current Zacks Industry Rank of 66, this industry ranks in the top 27% of all industries, numbering over 250.
The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.