In the latest trading session, Home Depot (HD - Free Report) closed at $257.80, marking no change from the previous day. This change lagged the S&P 500's 0.91% gain on the day. Meanwhile, the Dow gained 0.85%, and the Nasdaq, a tech-heavy index, added 0.59%.
Coming into today, shares of the home-improvement retailer had gained 3.14% in the past month. In that same time, the Retail-Wholesale sector gained 11.98%, while the S&P 500 gained 5.26%.
Wall Street will be looking for positivity from HD as it approaches its next earnings report date. On that day, HD is projected to report earnings of $3.23 per share, which would represent year-over-year growth of 1.89%. Meanwhile, our latest consensus estimate is calling for revenue of $32.88 billion, up 6.61% from the prior-year quarter.
For the full year, our Zacks Consensus Estimates are projecting earnings of $9.91 per share and revenue of $115.40 billion, which would represent changes of -3.32% and +4.7%, respectively, from the prior year.
Any recent changes to analyst estimates for HD should also be noted by investors. Recent revisions tend to reflect the latest near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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 ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 0.22% higher. HD currently has a Zacks Rank of #3 (Hold).
In terms of valuation, HD is currently trading at a Forward P/E ratio of 26.01. This represents a premium compared to its industry's average Forward P/E of 17.79.
We can also see that HD currently has a PEG ratio of 2.31. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. Building Products - Retail stocks are, on average, holding a PEG ratio of 1.71 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 14, which puts it in the top 6% 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.
Make sure to utilize Zacks. Com to follow all of these stock-moving metrics, and more, in the coming trading sessions.