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Home Depot (HD) Stock Sinks As Market Gains: Here's Why
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Home Depot (HD - Free Report) closed at $348.53 in the latest trading session, marking a -0.22% move from the prior day. This change lagged the S&P 500's daily gain of 0.14%. Elsewhere, the Dow gained 0.3%, while the tech-heavy Nasdaq added 0.16%.
Shares of the home-improvement retailer witnessed a gain of 11.48% over the previous month, beating the performance of the Retail-Wholesale sector with its gain of 6.73% and the S&P 500's gain of 4.89%.
The investment community will be paying close attention to the earnings performance of Home Depot in its upcoming release. It is anticipated that the company will report an EPS of $2.75, marking a 16.67% fall compared to the same quarter of the previous year. Our most recent consensus estimate is calling for quarterly revenue of $34.55 billion, down 3.58% from the year-ago period.
For the full year, the Zacks Consensus Estimates project earnings of $15.05 per share and a revenue of $152.43 billion, demonstrating changes of -9.83% and -3.16%, respectively, from the preceding year.
It is also important to note the recent changes to analyst estimates for Home Depot. Such recent modifications usually signify the changing landscape of near-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 demonstrates that these adjustments in estimates directly associate with imminent stock price performance. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
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. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed a 0.05% increase. Home Depot is currently sporting a Zacks Rank of #3 (Hold).
From a valuation perspective, Home Depot is currently exchanging hands at a Forward P/E ratio of 23.2. This represents a premium compared to its industry's average Forward P/E of 12.22.
One should further note that HD currently holds a PEG ratio of 2.6. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. HD's industry had an average PEG ratio of 2.09 as of yesterday's close.
The Building Products - Retail industry is part of the Retail-Wholesale sector. This group has a Zacks Industry Rank of 95, putting it in the top 38% 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.
Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming trading sessions.
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Home Depot (HD) Stock Sinks As Market Gains: Here's Why
Home Depot (HD - Free Report) closed at $348.53 in the latest trading session, marking a -0.22% move from the prior day. This change lagged the S&P 500's daily gain of 0.14%. Elsewhere, the Dow gained 0.3%, while the tech-heavy Nasdaq added 0.16%.
Shares of the home-improvement retailer witnessed a gain of 11.48% over the previous month, beating the performance of the Retail-Wholesale sector with its gain of 6.73% and the S&P 500's gain of 4.89%.
The investment community will be paying close attention to the earnings performance of Home Depot in its upcoming release. It is anticipated that the company will report an EPS of $2.75, marking a 16.67% fall compared to the same quarter of the previous year. Our most recent consensus estimate is calling for quarterly revenue of $34.55 billion, down 3.58% from the year-ago period.
For the full year, the Zacks Consensus Estimates project earnings of $15.05 per share and a revenue of $152.43 billion, demonstrating changes of -9.83% and -3.16%, respectively, from the preceding year.
It is also important to note the recent changes to analyst estimates for Home Depot. Such recent modifications usually signify the changing landscape of near-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 demonstrates that these adjustments in estimates directly associate with imminent stock price performance. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
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. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed a 0.05% increase. Home Depot is currently sporting a Zacks Rank of #3 (Hold).
From a valuation perspective, Home Depot is currently exchanging hands at a Forward P/E ratio of 23.2. This represents a premium compared to its industry's average Forward P/E of 12.22.
One should further note that HD currently holds a PEG ratio of 2.6. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. HD's industry had an average PEG ratio of 2.09 as of yesterday's close.
The Building Products - Retail industry is part of the Retail-Wholesale sector. This group has a Zacks Industry Rank of 95, putting it in the top 38% 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.
Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming trading sessions.