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Home Depot (HD) Dips More Than Broader Markets: What You Should Know
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Home Depot (HD - Free Report) closed at $276.77 in the latest trading session, marking a -1.16% move from the prior day. This change lagged the S&P 500's daily loss of 0.11%. Elsewhere, the Dow lost 0.03%, while the tech-heavy Nasdaq added 0.14%.
Coming into today, shares of the home-improvement retailer had gained 3.63% in the past month. In that same time, the Retail-Wholesale sector gained 3.54%, while the S&P 500 gained 2.46%.
HD will be looking to display strength as it nears its next earnings release. On that day, HD is projected to report earnings of $2.60 per share, which would represent year-over-year growth of 14.04%. Meanwhile, our latest consensus estimate is calling for revenue of $30.31 billion, up 17.56% from the prior-year quarter.
Investors should also note any recent changes to analyst estimates for HD. These recent revisions tend to reflect the evolving nature of short-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. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, 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. Within the past 30 days, our consensus EPS projection has moved 0.76% higher. HD is currently a Zacks Rank #3 (Hold).
Investors should also note HD's current valuation metrics, including its Forward P/E ratio of 22.64. For comparison, its industry has an average Forward P/E of 15.12, which means HD is trading at a premium to the group.
It is also worth noting that HD currently has a PEG ratio of 2.04. 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 industry currently had an average PEG ratio of 1.12 as of yesterday's close.
The Building Products - Retail industry is part of the Retail-Wholesale sector. This group has a Zacks Industry Rank of 42, putting it in the top 17% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our 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) Dips More Than Broader Markets: What You Should Know
Home Depot (HD - Free Report) closed at $276.77 in the latest trading session, marking a -1.16% move from the prior day. This change lagged the S&P 500's daily loss of 0.11%. Elsewhere, the Dow lost 0.03%, while the tech-heavy Nasdaq added 0.14%.
Coming into today, shares of the home-improvement retailer had gained 3.63% in the past month. In that same time, the Retail-Wholesale sector gained 3.54%, while the S&P 500 gained 2.46%.
HD will be looking to display strength as it nears its next earnings release. On that day, HD is projected to report earnings of $2.60 per share, which would represent year-over-year growth of 14.04%. Meanwhile, our latest consensus estimate is calling for revenue of $30.31 billion, up 17.56% from the prior-year quarter.
Investors should also note any recent changes to analyst estimates for HD. These recent revisions tend to reflect the evolving nature of short-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. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, 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. Within the past 30 days, our consensus EPS projection has moved 0.76% higher. HD is currently a Zacks Rank #3 (Hold).
Investors should also note HD's current valuation metrics, including its Forward P/E ratio of 22.64. For comparison, its industry has an average Forward P/E of 15.12, which means HD is trading at a premium to the group.
It is also worth noting that HD currently has a PEG ratio of 2.04. 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 industry currently had an average PEG ratio of 1.12 as of yesterday's close.
The Building Products - Retail industry is part of the Retail-Wholesale sector. This group has a Zacks Industry Rank of 42, putting it in the top 17% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our 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.