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Home Depot (HD) Gains As Market Dips: What You Should Know
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In the latest trading session, Home Depot (HD - Free Report) closed at $298.57, marking a +0.56% move from the previous day. This change outpaced the S&P 500's 0.6% loss on the day. Meanwhile, the Dow lost 0.33%, and the Nasdaq, a tech-heavy index, lost 2.87%.
Coming into today, shares of the home-improvement retailer had gained 5.06% in the past month. In that same time, the Retail-Wholesale sector gained 4.93%, while the S&P 500 gained 6.22%.
Wall Street will be looking for positivity from Home Depot as it approaches its next earnings report date. This is expected to be May 16, 2023. In that report, analysts expect Home Depot to post earnings of $3.85 per share. This would mark a year-over-year decline of 5.87%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $38.73 billion, down 0.47% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $15.84 per share and revenue of $157.23 billion, which would represent changes of -5.09% and -0.11%, respectively, from the prior year.
Investors might also notice recent changes to analyst estimates for Home Depot. These revisions typically reflect the latest short-term business trends, which can change frequently. 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. 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. The Zacks Consensus EPS estimate has moved 0.1% lower within the past month. Home Depot currently has a Zacks Rank of #4 (Sell).
Valuation is also important, so investors should note that Home Depot has a Forward P/E ratio of 18.75 right now. This represents a premium compared to its industry's average Forward P/E of 13.52.
Also, we should mention that HD has a PEG ratio of 1.74. 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 1.74 based on yesterday's closing prices.
The Building Products - Retail industry is part of the Retail-Wholesale sector. This group has a Zacks Industry Rank of 24, putting it in the top 10% 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.
You can find more information on all of these metrics, and much more, on Zacks.com.
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Home Depot (HD) Gains As Market Dips: What You Should Know
In the latest trading session, Home Depot (HD - Free Report) closed at $298.57, marking a +0.56% move from the previous day. This change outpaced the S&P 500's 0.6% loss on the day. Meanwhile, the Dow lost 0.33%, and the Nasdaq, a tech-heavy index, lost 2.87%.
Coming into today, shares of the home-improvement retailer had gained 5.06% in the past month. In that same time, the Retail-Wholesale sector gained 4.93%, while the S&P 500 gained 6.22%.
Wall Street will be looking for positivity from Home Depot as it approaches its next earnings report date. This is expected to be May 16, 2023. In that report, analysts expect Home Depot to post earnings of $3.85 per share. This would mark a year-over-year decline of 5.87%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $38.73 billion, down 0.47% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $15.84 per share and revenue of $157.23 billion, which would represent changes of -5.09% and -0.11%, respectively, from the prior year.
Investors might also notice recent changes to analyst estimates for Home Depot. These revisions typically reflect the latest short-term business trends, which can change frequently. 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. 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. The Zacks Consensus EPS estimate has moved 0.1% lower within the past month. Home Depot currently has a Zacks Rank of #4 (Sell).
Valuation is also important, so investors should note that Home Depot has a Forward P/E ratio of 18.75 right now. This represents a premium compared to its industry's average Forward P/E of 13.52.
Also, we should mention that HD has a PEG ratio of 1.74. 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 1.74 based on yesterday's closing prices.
The Building Products - Retail industry is part of the Retail-Wholesale sector. This group has a Zacks Industry Rank of 24, putting it in the top 10% 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.
You can find more information on all of these metrics, and much more, on Zacks.com.