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Home Depot (HD) Stock Sinks As Market Gains: What You Should Know
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In the latest market close, Home Depot (HD - Free Report) reached $283.31, with a -0.62% movement compared to the previous day. This change lagged the S&P 500's daily gain of 0.73%. Meanwhile, the Dow gained 0.62%, and the Nasdaq, a tech-heavy index, added 0.93%.
The home-improvement retailer's shares have seen a decrease of 6.99% over the last month, not keeping up with the Retail-Wholesale sector's loss of 3.41% and the S&P 500's loss of 2.29%.
The investment community will be closely monitoring the performance of Home Depot in its forthcoming earnings report. The company is scheduled to release its earnings on November 14, 2023. The company's earnings per share (EPS) are projected to be $3.80, reflecting a 10.38% decrease from the same quarter last year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $37.71 billion, down 3% from the year-ago period.
For the annual period, the Zacks Consensus Estimates anticipate earnings of $15.23 per share and a revenue of $153 billion, signifying shifts of -8.75% and -2.8%, respectively, from the last year.
Investors should also take note of any recent adjustments to analyst estimates for Home Depot. These recent revisions tend to reflect the evolving nature of short-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the company's business and profitability.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed a 0.09% decrease. Right now, Home Depot possesses a Zacks Rank of #3 (Hold).
From a valuation perspective, Home Depot is currently exchanging hands at a Forward P/E ratio of 18.72. This represents a premium compared to its industry's average Forward P/E of 10.47.
It is also worth noting that HD currently has a PEG ratio of 1.98. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. As the market closed yesterday, the Building Products - Retail industry was having an average PEG ratio of 1.79.
The Building Products - Retail industry is part of the Retail-Wholesale sector. At present, this industry carries a Zacks Industry Rank of 71, placing it within the top 29% of over 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.
To follow HD in the coming trading sessions, be sure to utilize Zacks.com.
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Home Depot (HD) Stock Sinks As Market Gains: What You Should Know
In the latest market close, Home Depot (HD - Free Report) reached $283.31, with a -0.62% movement compared to the previous day. This change lagged the S&P 500's daily gain of 0.73%. Meanwhile, the Dow gained 0.62%, and the Nasdaq, a tech-heavy index, added 0.93%.
The home-improvement retailer's shares have seen a decrease of 6.99% over the last month, not keeping up with the Retail-Wholesale sector's loss of 3.41% and the S&P 500's loss of 2.29%.
The investment community will be closely monitoring the performance of Home Depot in its forthcoming earnings report. The company is scheduled to release its earnings on November 14, 2023. The company's earnings per share (EPS) are projected to be $3.80, reflecting a 10.38% decrease from the same quarter last year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $37.71 billion, down 3% from the year-ago period.
For the annual period, the Zacks Consensus Estimates anticipate earnings of $15.23 per share and a revenue of $153 billion, signifying shifts of -8.75% and -2.8%, respectively, from the last year.
Investors should also take note of any recent adjustments to analyst estimates for Home Depot. These recent revisions tend to reflect the evolving nature of short-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the company's business and profitability.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed a 0.09% decrease. Right now, Home Depot possesses a Zacks Rank of #3 (Hold).
From a valuation perspective, Home Depot is currently exchanging hands at a Forward P/E ratio of 18.72. This represents a premium compared to its industry's average Forward P/E of 10.47.
It is also worth noting that HD currently has a PEG ratio of 1.98. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. As the market closed yesterday, the Building Products - Retail industry was having an average PEG ratio of 1.79.
The Building Products - Retail industry is part of the Retail-Wholesale sector. At present, this industry carries a Zacks Industry Rank of 71, placing it within the top 29% of over 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.
To follow HD in the coming trading sessions, be sure to utilize Zacks.com.