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Home Depot (HD) Outpaces Stock Market Gains: What You Should Know
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In the latest trading session, Home Depot (HD - Free Report) closed at $203.70, marking a +0.76% move from the previous day. The stock outpaced the S&P 500's daily gain of 0.1%. Meanwhile, the Dow gained 0.15%, and the Nasdaq, a tech-heavy index, lost 0.66%.
Heading into today, shares of the home-improvement retailer had gained 3.33% over the past month, lagging the Retail-Wholesale sector's gain of 3.75% and the S&P 500's gain of 3.95% 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 May 21, 2019. On that day, HD is projected to report earnings of $2.16 per share, which would represent year-over-year growth of 3.85%. Meanwhile, our latest consensus estimate is calling for revenue of $26.43 billion, up 5.94% from the prior-year quarter.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $10.09 per share and revenue of $111.38 billion. These totals would mark changes of +2.02% and +2.93%, respectively, from last year.
Any recent changes to analyst estimates for HD should also be noted by investors. These revisions help to show the ever-changing nature of near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
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. Within the past 30 days, our consensus EPS projection has moved 0.01% lower. HD is holding a Zacks Rank of #3 (Hold) right now.
Valuation is also important, so investors should note that HD has a Forward P/E ratio of 20.03 right now. This valuation marks a premium compared to its industry's average Forward P/E of 13.92.
We can also see that HD currently has a PEG ratio of 1.75. 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 1.3 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 109, which puts it in the top 43% of all 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.
To follow HD in the coming trading sessions, be sure to utilize Zacks.com.
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Home Depot (HD) Outpaces Stock Market Gains: What You Should Know
In the latest trading session, Home Depot (HD - Free Report) closed at $203.70, marking a +0.76% move from the previous day. The stock outpaced the S&P 500's daily gain of 0.1%. Meanwhile, the Dow gained 0.15%, and the Nasdaq, a tech-heavy index, lost 0.66%.
Heading into today, shares of the home-improvement retailer had gained 3.33% over the past month, lagging the Retail-Wholesale sector's gain of 3.75% and the S&P 500's gain of 3.95% 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 May 21, 2019. On that day, HD is projected to report earnings of $2.16 per share, which would represent year-over-year growth of 3.85%. Meanwhile, our latest consensus estimate is calling for revenue of $26.43 billion, up 5.94% from the prior-year quarter.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $10.09 per share and revenue of $111.38 billion. These totals would mark changes of +2.02% and +2.93%, respectively, from last year.
Any recent changes to analyst estimates for HD should also be noted by investors. These revisions help to show the ever-changing nature of near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
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. Within the past 30 days, our consensus EPS projection has moved 0.01% lower. HD is holding a Zacks Rank of #3 (Hold) right now.
Valuation is also important, so investors should note that HD has a Forward P/E ratio of 20.03 right now. This valuation marks a premium compared to its industry's average Forward P/E of 13.92.
We can also see that HD currently has a PEG ratio of 1.75. 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 1.3 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 109, which puts it in the top 43% of all 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.
To follow HD in the coming trading sessions, be sure to utilize Zacks.com.