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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 the most recent trading day at $297.03, moving +0.92% from the previous trading session. The stock outpaced the S&P 500's daily loss of 3.2%. At the same time, the Dow lost 1.99%, and the tech-heavy Nasdaq lost 0.47%.
Coming into today, shares of the home-improvement retailer had lost 5.4% in the past month. In that same time, the Retail-Wholesale sector lost 13.6%, while the S&P 500 lost 7.87%.
Investors will be hoping for strength from Home Depot as it approaches its next earnings release, which is expected to be May 17, 2022. The company is expected to report EPS of $3.65, down 5.44% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $36.47 billion, down 2.74% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $15.97 per share and revenue of $152.99 billion, which would represent changes of +2.83% and +1.21%, respectively, from the prior year.
Investors might also notice 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. 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 0.43% lower within the past month. Home Depot currently has a Zacks Rank of #4 (Sell).
Investors should also note Home Depot's current valuation metrics, including its Forward P/E ratio of 18.42. Its industry sports an average Forward P/E of 11.85, so we one might conclude that Home Depot is trading at a premium comparatively.
Meanwhile, HD's PEG ratio is currently 1.89. 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 1.89 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 59, which puts it in the top 24% 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.
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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Home Depot (HD) Gains As Market Dips: What You Should Know
Home Depot (HD - Free Report) closed the most recent trading day at $297.03, moving +0.92% from the previous trading session. The stock outpaced the S&P 500's daily loss of 3.2%. At the same time, the Dow lost 1.99%, and the tech-heavy Nasdaq lost 0.47%.
Coming into today, shares of the home-improvement retailer had lost 5.4% in the past month. In that same time, the Retail-Wholesale sector lost 13.6%, while the S&P 500 lost 7.87%.
Investors will be hoping for strength from Home Depot as it approaches its next earnings release, which is expected to be May 17, 2022. The company is expected to report EPS of $3.65, down 5.44% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $36.47 billion, down 2.74% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $15.97 per share and revenue of $152.99 billion, which would represent changes of +2.83% and +1.21%, respectively, from the prior year.
Investors might also notice 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. 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 0.43% lower within the past month. Home Depot currently has a Zacks Rank of #4 (Sell).
Investors should also note Home Depot's current valuation metrics, including its Forward P/E ratio of 18.42. Its industry sports an average Forward P/E of 11.85, so we one might conclude that Home Depot is trading at a premium comparatively.
Meanwhile, HD's PEG ratio is currently 1.89. 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 1.89 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 59, which puts it in the top 24% 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.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.