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Home Depot (HD) Gains But Lags Market: What You Should Know
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Home Depot (HD - Free Report) closed at $368.59 in the latest trading session, marking a +0.05% move from the prior day. This move lagged the S&P 500's daily gain of 0.09%.
Coming into today, shares of the home-improvement retailer had gained 10.19% in the past month. In that same time, the Retail-Wholesale sector gained 9.07%, while the S&P 500 gained 8.19%.
Wall Street will be looking for positivity from HD as it approaches its next earnings report date. This is expected to be November 16, 2021. On that day, HD is projected to report earnings of $3.33 per share, which would represent year-over-year growth of 4.72%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $34.46 billion, up 2.77% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $14.51 per share and revenue of $145.55 billion. These totals would mark changes of +20.62% and +10.17%, respectively, from last 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.
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, 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 0.06% higher. HD is currently sporting a Zacks Rank of #2 (Buy).
Digging into valuation, HD currently has a Forward P/E ratio of 25.39. This represents a premium compared to its industry's average Forward P/E of 17.66.
It is also worth noting that HD currently has a PEG ratio of 2.61. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. The Building Products - Retail industry currently had an average PEG ratio of 2.04 as of yesterday's close.
The Building Products - Retail industry is part of the Retail-Wholesale sector. This industry currently has a Zacks Industry Rank of 102, which puts it in the top 41% 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) Gains But Lags Market: What You Should Know
Home Depot (HD - Free Report) closed at $368.59 in the latest trading session, marking a +0.05% move from the prior day. This move lagged the S&P 500's daily gain of 0.09%.
Coming into today, shares of the home-improvement retailer had gained 10.19% in the past month. In that same time, the Retail-Wholesale sector gained 9.07%, while the S&P 500 gained 8.19%.
Wall Street will be looking for positivity from HD as it approaches its next earnings report date. This is expected to be November 16, 2021. On that day, HD is projected to report earnings of $3.33 per share, which would represent year-over-year growth of 4.72%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $34.46 billion, up 2.77% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $14.51 per share and revenue of $145.55 billion. These totals would mark changes of +20.62% and +10.17%, respectively, from last 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.
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, 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 0.06% higher. HD is currently sporting a Zacks Rank of #2 (Buy).
Digging into valuation, HD currently has a Forward P/E ratio of 25.39. This represents a premium compared to its industry's average Forward P/E of 17.66.
It is also worth noting that HD currently has a PEG ratio of 2.61. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. The Building Products - Retail industry currently had an average PEG ratio of 2.04 as of yesterday's close.
The Building Products - Retail industry is part of the Retail-Wholesale sector. This industry currently has a Zacks Industry Rank of 102, which puts it in the top 41% 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.