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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 $310.64 in the latest trading session, marking a +0.92% move from the prior day. The stock lagged the S&P 500's daily gain of 1.23%. Elsewhere, the Dow gained 0.84%, while the tech-heavy Nasdaq lost 2.24%.
Coming into today, shares of the home-improvement retailer had gained 6.74% in the past month. In that same time, the Retail-Wholesale sector gained 4.7%, while the S&P 500 gained 4.67%.
Home Depot will be looking to display strength as it nears its next earnings release. The company is expected to report EPS of $4.46, down 11.68% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $42.24 billion, down 3.54% from the year-ago period.
HD's full-year Zacks Consensus Estimates are calling for earnings of $15.02 per share and revenue of $151.86 billion. These results would represent year-over-year changes of -10.01% and -3.52%, respectively.
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. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
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.
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. The Zacks Consensus EPS estimate has moved 0.03% lower within the past month. Home Depot is currently sporting a Zacks Rank of #3 (Hold).
Digging into valuation, Home Depot currently has a Forward P/E ratio of 20.5. For comparison, its industry has an average Forward P/E of 13.27, 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 1.99. 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. The Building Products - Retail industry currently had an average PEG ratio of 1.99 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 18, 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.
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 But Lags Market: What You Should Know
Home Depot (HD - Free Report) closed at $310.64 in the latest trading session, marking a +0.92% move from the prior day. The stock lagged the S&P 500's daily gain of 1.23%. Elsewhere, the Dow gained 0.84%, while the tech-heavy Nasdaq lost 2.24%.
Coming into today, shares of the home-improvement retailer had gained 6.74% in the past month. In that same time, the Retail-Wholesale sector gained 4.7%, while the S&P 500 gained 4.67%.
Home Depot will be looking to display strength as it nears its next earnings release. The company is expected to report EPS of $4.46, down 11.68% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $42.24 billion, down 3.54% from the year-ago period.
HD's full-year Zacks Consensus Estimates are calling for earnings of $15.02 per share and revenue of $151.86 billion. These results would represent year-over-year changes of -10.01% and -3.52%, respectively.
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. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
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.
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. The Zacks Consensus EPS estimate has moved 0.03% lower within the past month. Home Depot is currently sporting a Zacks Rank of #3 (Hold).
Digging into valuation, Home Depot currently has a Forward P/E ratio of 20.5. For comparison, its industry has an average Forward P/E of 13.27, 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 1.99. 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. The Building Products - Retail industry currently had an average PEG ratio of 1.99 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 18, 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.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.