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Home Depot (HD) Stock Sinks As Market Gains: What You Should Know
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In the latest trading session, Home Depot (HD - Free Report) closed at $288.61, marking a -0.02% move from the previous day. This move lagged the S&P 500's daily gain of 0.36%. Elsewhere, the Dow gained 0.01%, while the tech-heavy Nasdaq added 1.91%.
Prior to today's trading, shares of the home-improvement retailer had lost 0.97% over the past month. This has lagged the Retail-Wholesale sector's gain of 1.36% and the S&P 500's gain of 1.24% in that time.
Home Depot will be looking to display strength as it nears its next earnings release. On that day, Home Depot is projected to report earnings of $3.86 per share, which would represent a year-over-year decline of 5.62%. Meanwhile, our latest consensus estimate is calling for revenue of $38.72 billion, down 0.48% from the prior-year quarter.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $15.85 per share and revenue of $157.23 billion. These totals would mark changes of -5.03% and -0.11%, respectively, from last year.
It is also important to note the recent changes to analyst estimates for Home Depot. Recent revisions tend to reflect the latest 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. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. The Zacks Consensus EPS estimate remained stagnant within the past month. Home Depot is currently sporting a Zacks Rank of #4 (Sell).
Looking at its valuation, Home Depot is holding a Forward P/E ratio of 18.21. For comparison, its industry has an average Forward P/E of 12.3, which means Home Depot is trading at a premium to the group.
Also, we should mention that HD has a PEG ratio of 1.67. 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 1.67 based on yesterday's closing prices.
The Building Products - Retail industry is part of the Retail-Wholesale sector. This industry currently has a Zacks Industry Rank of 19, which puts it in the top 8% 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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
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Home Depot (HD) Stock Sinks As Market Gains: What You Should Know
In the latest trading session, Home Depot (HD - Free Report) closed at $288.61, marking a -0.02% move from the previous day. This move lagged the S&P 500's daily gain of 0.36%. Elsewhere, the Dow gained 0.01%, while the tech-heavy Nasdaq added 1.91%.
Prior to today's trading, shares of the home-improvement retailer had lost 0.97% over the past month. This has lagged the Retail-Wholesale sector's gain of 1.36% and the S&P 500's gain of 1.24% in that time.
Home Depot will be looking to display strength as it nears its next earnings release. On that day, Home Depot is projected to report earnings of $3.86 per share, which would represent a year-over-year decline of 5.62%. Meanwhile, our latest consensus estimate is calling for revenue of $38.72 billion, down 0.48% from the prior-year quarter.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $15.85 per share and revenue of $157.23 billion. These totals would mark changes of -5.03% and -0.11%, respectively, from last year.
It is also important to note the recent changes to analyst estimates for Home Depot. Recent revisions tend to reflect the latest 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. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. The Zacks Consensus EPS estimate remained stagnant within the past month. Home Depot is currently sporting a Zacks Rank of #4 (Sell).
Looking at its valuation, Home Depot is holding a Forward P/E ratio of 18.21. For comparison, its industry has an average Forward P/E of 12.3, which means Home Depot is trading at a premium to the group.
Also, we should mention that HD has a PEG ratio of 1.67. 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 1.67 based on yesterday's closing prices.
The Building Products - Retail industry is part of the Retail-Wholesale sector. This industry currently has a Zacks Industry Rank of 19, which puts it in the top 8% 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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.