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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 the most recent trading day at $182.18, moving +1.39% from the previous trading session. This change lagged the S&P 500's 1.56% gain on the day. At the same time, the Dow added 1.77%, and the tech-heavy Nasdaq gained 2.2%.
Prior to today's trading, shares of the home-improvement retailer had gained 4.58% over the past month. This has lagged the Retail-Wholesale sector's gain of 7.6% and the S&P 500's gain of 6.41% in that time.
Wall Street will be looking for positivity from HD as it approaches its next earnings report date. This is expected to be February 26, 2019. In that report, analysts expect HD to post earnings of $2.17 per share. This would mark year-over-year growth of 28.4%. Our most recent consensus estimate is calling for quarterly revenue of $26.58 billion, up 11.28% from the year-ago period.
HD's full-year Zacks Consensus Estimates are calling for earnings of $9.80 per share and revenue of $108.24 billion. These results would represent year-over-year changes of +31.37% and +7.27%, respectively.
Investors might also notice recent changes to analyst estimates for HD. These revisions typically reflect the latest short-term business trends, which can change frequently. 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 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.
The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 0.01% lower within the past month. HD is currently sporting a Zacks Rank of #3 (Hold).
Investors should also note HD's current valuation metrics, including its Forward P/E ratio of 18.33. For comparison, its industry has an average Forward P/E of 11.82, which means HD is trading at a premium to the group.
We can also see that HD currently has a PEG ratio of 1.42. 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 Building Products - Retail was holding an average PEG ratio of 1.2 at yesterday's closing price.
The Building Products - Retail industry is part of the Retail-Wholesale sector. This group has a Zacks Industry Rank of 95, putting it in the top 38% 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 the most recent trading day at $182.18, moving +1.39% from the previous trading session. This change lagged the S&P 500's 1.56% gain on the day. At the same time, the Dow added 1.77%, and the tech-heavy Nasdaq gained 2.2%.
Prior to today's trading, shares of the home-improvement retailer had gained 4.58% over the past month. This has lagged the Retail-Wholesale sector's gain of 7.6% and the S&P 500's gain of 6.41% in that time.
Wall Street will be looking for positivity from HD as it approaches its next earnings report date. This is expected to be February 26, 2019. In that report, analysts expect HD to post earnings of $2.17 per share. This would mark year-over-year growth of 28.4%. Our most recent consensus estimate is calling for quarterly revenue of $26.58 billion, up 11.28% from the year-ago period.
HD's full-year Zacks Consensus Estimates are calling for earnings of $9.80 per share and revenue of $108.24 billion. These results would represent year-over-year changes of +31.37% and +7.27%, respectively.
Investors might also notice recent changes to analyst estimates for HD. These revisions typically reflect the latest short-term business trends, which can change frequently. 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 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.
The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 0.01% lower within the past month. HD is currently sporting a Zacks Rank of #3 (Hold).
Investors should also note HD's current valuation metrics, including its Forward P/E ratio of 18.33. For comparison, its industry has an average Forward P/E of 11.82, which means HD is trading at a premium to the group.
We can also see that HD currently has a PEG ratio of 1.42. 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 Building Products - Retail was holding an average PEG ratio of 1.2 at yesterday's closing price.
The Building Products - Retail industry is part of the Retail-Wholesale sector. This group has a Zacks Industry Rank of 95, putting it in the top 38% 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.