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Home Depot (HD) Gains As Market Dips: What You Should Know

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In the latest trading session, Home Depot (HD - Free Report) closed at $292.75, marking a +0.96% move from the previous day. This move outpaced the S&P 500's daily loss of 0.55%. At the same time, the Dow lost 0.01%, and the tech-heavy Nasdaq lost 2.01%.

Prior to today's trading, shares of the home-improvement retailer had gained 8.51% over the past month. This has outpaced the Retail-Wholesale sector's loss of 1.81% and the S&P 500's gain of 0.84% in that time.

HD will be looking to display strength as it nears its next earnings release, which is expected to be May 18, 2021. On that day, HD is projected to report earnings of $2.84 per share, which would represent year-over-year growth of 36.54%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $33.38 billion, up 18.12% from the year-ago period.

For the full year, our Zacks Consensus Estimates are projecting earnings of $12.55 per share and revenue of $134.83 billion, which would represent changes of +4.32% and +2.06%, respectively, from the prior year.

It is also important to note the recent changes to analyst estimates for HD. These revisions help to show the ever-changing nature of near-term business trends. 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 1.53% higher 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 23.11. This valuation marks a premium compared to its industry's average Forward P/E of 15.56.

Investors should also note that HD has a PEG ratio of 2.22 right now. 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. The Building Products - Retail was holding an average PEG ratio of 1.49 at yesterday's closing price.

The Building Products - Retail industry is part of the Retail-Wholesale sector. This industry currently has a Zacks Industry Rank of 103, which puts it in the top 41% 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.

Make sure to utilize Zacks. Com to follow all of these stock-moving metrics, and more, in the coming trading sessions.


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