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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 $366.98 in the latest trading session, marking a +0.12% move from the prior day. This move lagged the S&P 500's daily gain of 1.89%. At the same time, the Dow added 1.17%, and the tech-heavy Nasdaq gained 0.73%.
Coming into today, shares of the home-improvement retailer had lost 11.68% in the past month. In that same time, the Retail-Wholesale sector lost 11.09%, while the S&P 500 lost 7.36%.
Investors will be hoping for strength from Home Depot as it approaches its next earnings release, which is expected to be February 22, 2022. In that report, analysts expect Home Depot to post earnings of $3.20 per share. This would mark year-over-year growth of 16.79%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $34.61 billion, up 7.27% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $15.47 per share and revenue of $150.01 billion. These totals would mark changes of +28.6% and +13.55%, respectively, from last year.
Investors should also note any recent changes to analyst estimates for Home Depot. 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.
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.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 0.12% lower. Home Depot currently has a Zacks Rank of #3 (Hold).
Looking at its valuation, Home Depot is holding a Forward P/E ratio of 23.7. For comparison, its industry has an average Forward P/E of 10.88, which means Home Depot is trading at a premium to the group.
It is also worth noting that HD currently has a PEG ratio of 1.94. 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. HD's industry had an average PEG ratio of 1.69 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 20, which puts it in the top 8% 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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
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Home Depot (HD) Gains But Lags Market: What You Should Know
Home Depot (HD - Free Report) closed at $366.98 in the latest trading session, marking a +0.12% move from the prior day. This move lagged the S&P 500's daily gain of 1.89%. At the same time, the Dow added 1.17%, and the tech-heavy Nasdaq gained 0.73%.
Coming into today, shares of the home-improvement retailer had lost 11.68% in the past month. In that same time, the Retail-Wholesale sector lost 11.09%, while the S&P 500 lost 7.36%.
Investors will be hoping for strength from Home Depot as it approaches its next earnings release, which is expected to be February 22, 2022. In that report, analysts expect Home Depot to post earnings of $3.20 per share. This would mark year-over-year growth of 16.79%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $34.61 billion, up 7.27% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $15.47 per share and revenue of $150.01 billion. These totals would mark changes of +28.6% and +13.55%, respectively, from last year.
Investors should also note any recent changes to analyst estimates for Home Depot. 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.
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.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 0.12% lower. Home Depot currently has a Zacks Rank of #3 (Hold).
Looking at its valuation, Home Depot is holding a Forward P/E ratio of 23.7. For comparison, its industry has an average Forward P/E of 10.88, which means Home Depot is trading at a premium to the group.
It is also worth noting that HD currently has a PEG ratio of 1.94. 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. HD's industry had an average PEG ratio of 1.69 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 20, which puts it in the top 8% 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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.