We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Home Depot (HD) Dips More Than Broader Markets: What You Should Know
Read MoreHide Full Article
In the latest trading session, Home Depot (HD - Free Report) closed at $290.44, marking a -1.13% move from the previous day. This move lagged the S&P 500's daily loss of 0.41%. Elsewhere, the Dow lost 0.11%, while the tech-heavy Nasdaq lost 4.08%.
Prior to today's trading, shares of the home-improvement retailer had gained 2.87% over the past month. This has lagged the Retail-Wholesale sector's gain of 6.55% and the S&P 500's gain of 6.51% in that time.
Home Depot will be looking to display strength as it nears its next earnings release, which is expected to be May 16, 2023. In that report, analysts expect Home Depot to post earnings of $3.86 per share. This would mark a year-over-year decline of 5.62%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $38.73 billion, down 0.47% from the year-ago period.
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. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
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. Over the past month, the Zacks Consensus EPS estimate remained stagnant. Home Depot is currently a Zacks Rank #4 (Sell).
Digging into valuation, Home Depot currently has a Forward P/E ratio of 18.53. This valuation marks a premium compared to its industry's average Forward P/E of 13.22.
It is also worth noting that HD currently has a PEG ratio of 1.7. 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. Building Products - Retail stocks are, on average, holding a PEG ratio of 1.7 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 23, which puts it in the top 10% 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.
To follow HD in the coming trading sessions, be sure to utilize Zacks.com.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Home Depot (HD) Dips More Than Broader Markets: What You Should Know
In the latest trading session, Home Depot (HD - Free Report) closed at $290.44, marking a -1.13% move from the previous day. This move lagged the S&P 500's daily loss of 0.41%. Elsewhere, the Dow lost 0.11%, while the tech-heavy Nasdaq lost 4.08%.
Prior to today's trading, shares of the home-improvement retailer had gained 2.87% over the past month. This has lagged the Retail-Wholesale sector's gain of 6.55% and the S&P 500's gain of 6.51% in that time.
Home Depot will be looking to display strength as it nears its next earnings release, which is expected to be May 16, 2023. In that report, analysts expect Home Depot to post earnings of $3.86 per share. This would mark a year-over-year decline of 5.62%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $38.73 billion, down 0.47% from the year-ago period.
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. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
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. Over the past month, the Zacks Consensus EPS estimate remained stagnant. Home Depot is currently a Zacks Rank #4 (Sell).
Digging into valuation, Home Depot currently has a Forward P/E ratio of 18.53. This valuation marks a premium compared to its industry's average Forward P/E of 13.22.
It is also worth noting that HD currently has a PEG ratio of 1.7. 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. Building Products - Retail stocks are, on average, holding a PEG ratio of 1.7 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 23, which puts it in the top 10% 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.
To follow HD in the coming trading sessions, be sure to utilize Zacks.com.