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Home Depot (HD) Stock Drops Despite Market Gains: Important Facts to Note
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Home Depot (HD - Free Report) ended the recent trading session at $294.57, demonstrating a -0.35% swing from the preceding day's closing price. The stock fell short of the S&P 500, which registered a gain of 0.18% for the day. At the same time, the Dow added 0.1%, and the tech-heavy Nasdaq gained 0.3%.
Prior to today's trading, shares of the home-improvement retailer had gained 0.95% over the past month. This has lagged the Retail-Wholesale sector's gain of 5.64% and the S&P 500's gain of 3.08% in that time.
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. In that report, analysts expect Home Depot to post earnings of $3.82 per share. This would mark a year-over-year decline of 9.91%. Meanwhile, the latest consensus estimate predicts the revenue to be $37.71 billion, indicating a 3% decrease compared to the same quarter of the previous year.
For the full year, the Zacks Consensus Estimates project earnings of $15.22 per share and a revenue of $153 billion, demonstrating changes of -8.81% and -2.8%, respectively, from the preceding year.
It is also important to note the recent changes to analyst estimates for Home Depot. These recent revisions tend to reflect the evolving nature of short-term business trends. Consequently, upward revisions in estimates express analysts' positivity towards the company's business operations and its ability to generate profits.
Our research shows that these estimate changes are directly correlated with near-term stock prices. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical 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. Over the past month, the Zacks Consensus EPS estimate has shifted 0.09% downward. Home Depot is currently a Zacks Rank #4 (Sell).
From a valuation perspective, Home Depot is currently exchanging hands at a Forward P/E ratio of 19.42. This signifies a premium in comparison to the average Forward P/E of 10.88 for its industry.
We can additionally observe that HD currently boasts a PEG ratio of 2.06. 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. As the market closed yesterday, the Building Products - Retail industry was having an average PEG ratio of 1.86.
The Building Products - Retail industry is part of the Retail-Wholesale sector. Currently, this industry holds a Zacks Industry Rank of 192, positioning it in the bottom 24% of all 250+ industries.
The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these 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 Drops Despite Market Gains: Important Facts to Note
Home Depot (HD - Free Report) ended the recent trading session at $294.57, demonstrating a -0.35% swing from the preceding day's closing price. The stock fell short of the S&P 500, which registered a gain of 0.18% for the day. At the same time, the Dow added 0.1%, and the tech-heavy Nasdaq gained 0.3%.
Prior to today's trading, shares of the home-improvement retailer had gained 0.95% over the past month. This has lagged the Retail-Wholesale sector's gain of 5.64% and the S&P 500's gain of 3.08% in that time.
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. In that report, analysts expect Home Depot to post earnings of $3.82 per share. This would mark a year-over-year decline of 9.91%. Meanwhile, the latest consensus estimate predicts the revenue to be $37.71 billion, indicating a 3% decrease compared to the same quarter of the previous year.
For the full year, the Zacks Consensus Estimates project earnings of $15.22 per share and a revenue of $153 billion, demonstrating changes of -8.81% and -2.8%, respectively, from the preceding year.
It is also important to note the recent changes to analyst estimates for Home Depot. These recent revisions tend to reflect the evolving nature of short-term business trends. Consequently, upward revisions in estimates express analysts' positivity towards the company's business operations and its ability to generate profits.
Our research shows that these estimate changes are directly correlated with near-term stock prices. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical 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. Over the past month, the Zacks Consensus EPS estimate has shifted 0.09% downward. Home Depot is currently a Zacks Rank #4 (Sell).
From a valuation perspective, Home Depot is currently exchanging hands at a Forward P/E ratio of 19.42. This signifies a premium in comparison to the average Forward P/E of 10.88 for its industry.
We can additionally observe that HD currently boasts a PEG ratio of 2.06. 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. As the market closed yesterday, the Building Products - Retail industry was having an average PEG ratio of 1.86.
The Building Products - Retail industry is part of the Retail-Wholesale sector. Currently, this industry holds a Zacks Industry Rank of 192, positioning it in the bottom 24% of all 250+ industries.
The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these 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.