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Home Depot (HD) Gains As Market Dips: What You Should Know
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Home Depot (HD - Free Report) closed at $283.05 in the latest trading session, marking a +0.76% move from the prior day. This change outpaced the S&P 500's 0.44% loss on the day. Elsewhere, the Dow lost 0.38%, while the tech-heavy Nasdaq lost 0.72%.
Coming into today, shares of the home-improvement retailer had gained 0.81% in the past month. In that same time, the Retail-Wholesale sector gained 5.71%, while the S&P 500 gained 4.46%.
Investors will be hoping for strength from HD as it approaches its next earnings release, which is expected to be February 23, 2021. In that report, analysts expect HD to post earnings of $2.60 per share. This would mark year-over-year growth of 14.04%. Meanwhile, our latest consensus estimate is calling for revenue of $30.45 billion, up 18.11% from the prior-year quarter.
Any recent changes to analyst estimates for HD should also be noted by investors. 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.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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 0.76% higher within the past month. HD is currently a Zacks Rank #3 (Hold).
In terms of valuation, HD is currently trading at a Forward P/E ratio of 22.31. Its industry sports an average Forward P/E of 15.12, so we one might conclude that HD is trading at a premium comparatively.
We can also see that HD currently has a PEG ratio of 2.01. 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 1.12 based on yesterday's closing prices.
The Building Products - Retail industry is part of the Retail-Wholesale sector. This group has a Zacks Industry Rank of 94, putting it in the top 37% 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.
You can find more information on all of these metrics, and much more, on Zacks.com.
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Home Depot (HD) Gains As Market Dips: What You Should Know
Home Depot (HD - Free Report) closed at $283.05 in the latest trading session, marking a +0.76% move from the prior day. This change outpaced the S&P 500's 0.44% loss on the day. Elsewhere, the Dow lost 0.38%, while the tech-heavy Nasdaq lost 0.72%.
Coming into today, shares of the home-improvement retailer had gained 0.81% in the past month. In that same time, the Retail-Wholesale sector gained 5.71%, while the S&P 500 gained 4.46%.
Investors will be hoping for strength from HD as it approaches its next earnings release, which is expected to be February 23, 2021. In that report, analysts expect HD to post earnings of $2.60 per share. This would mark year-over-year growth of 14.04%. Meanwhile, our latest consensus estimate is calling for revenue of $30.45 billion, up 18.11% from the prior-year quarter.
Any recent changes to analyst estimates for HD should also be noted by investors. 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.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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 0.76% higher within the past month. HD is currently a Zacks Rank #3 (Hold).
In terms of valuation, HD is currently trading at a Forward P/E ratio of 22.31. Its industry sports an average Forward P/E of 15.12, so we one might conclude that HD is trading at a premium comparatively.
We can also see that HD currently has a PEG ratio of 2.01. 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 1.12 based on yesterday's closing prices.
The Building Products - Retail industry is part of the Retail-Wholesale sector. This group has a Zacks Industry Rank of 94, putting it in the top 37% 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.
You can find more information on all of these metrics, and much more, on Zacks.com.