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Home Depot (HD) Outperforms Broader Market: What You Need to Know
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Home Depot (HD - Free Report) closed at $385.89 in the latest trading session, marking a +1.57% move from the prior day. The stock outpaced the S&P 500's daily gain of 0.86%. At the same time, the Dow added 1.22%, and the tech-heavy Nasdaq gained 0.51%.
Shares of the home-improvement retailer have appreciated by 1.16% over the course of the past month, underperforming the Retail-Wholesale sector's gain of 1.86% and the S&P 500's gain of 2.84%.
Market participants will be closely following the financial results of Home Depot in its upcoming release. The company is predicted to post an EPS of $3.60, indicating a 5.76% decline compared to the equivalent quarter last year. Simultaneously, our latest consensus estimate expects the revenue to be $36.66 billion, showing a 1.6% drop compared to the year-ago quarter.
In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $15.39 per share and a revenue of $154.53 billion, indicating changes of +1.85% and +1.22%, respectively, from the former year.
Investors should also pay attention to any latest changes in analyst estimates for Home Depot. These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the company's business health and profitability.
Our research shows that these estimate changes are directly correlated with near-term stock prices. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.
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 moved 0.07% lower. Right now, Home Depot possesses a Zacks Rank of #3 (Hold).
Looking at valuation, Home Depot is presently trading at a Forward P/E ratio of 24.69. This indicates a premium in contrast to its industry's Forward P/E of 14.64.
Also, we should mention that HD has a PEG ratio of 2.51. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. By the end of yesterday's trading, the Building Products - Retail industry had an average PEG ratio of 1.86.
The Building Products - Retail industry is part of the Retail-Wholesale sector. With its current Zacks Industry Rank of 92, this industry ranks in the top 37% of all industries, numbering over 250.
The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in the 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) Outperforms Broader Market: What You Need to Know
Home Depot (HD - Free Report) closed at $385.89 in the latest trading session, marking a +1.57% move from the prior day. The stock outpaced the S&P 500's daily gain of 0.86%. At the same time, the Dow added 1.22%, and the tech-heavy Nasdaq gained 0.51%.
Shares of the home-improvement retailer have appreciated by 1.16% over the course of the past month, underperforming the Retail-Wholesale sector's gain of 1.86% and the S&P 500's gain of 2.84%.
Market participants will be closely following the financial results of Home Depot in its upcoming release. The company is predicted to post an EPS of $3.60, indicating a 5.76% decline compared to the equivalent quarter last year. Simultaneously, our latest consensus estimate expects the revenue to be $36.66 billion, showing a 1.6% drop compared to the year-ago quarter.
In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $15.39 per share and a revenue of $154.53 billion, indicating changes of +1.85% and +1.22%, respectively, from the former year.
Investors should also pay attention to any latest changes in analyst estimates for Home Depot. These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the company's business health and profitability.
Our research shows that these estimate changes are directly correlated with near-term stock prices. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.
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 moved 0.07% lower. Right now, Home Depot possesses a Zacks Rank of #3 (Hold).
Looking at valuation, Home Depot is presently trading at a Forward P/E ratio of 24.69. This indicates a premium in contrast to its industry's Forward P/E of 14.64.
Also, we should mention that HD has a PEG ratio of 2.51. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. By the end of yesterday's trading, the Building Products - Retail industry had an average PEG ratio of 1.86.
The Building Products - Retail industry is part of the Retail-Wholesale sector. With its current Zacks Industry Rank of 92, this industry ranks in the top 37% of all industries, numbering over 250.
The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in the 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.