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Home Depot (HD) Stock Declines While Market Improves: Some Information for Investors
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Home Depot (HD - Free Report) ended the recent trading session at $380.36, demonstrating a -1.6% change from the preceding day's closing price. The stock trailed the S&P 500, which registered a daily gain of 0.41%. Elsewhere, the Dow lost 0.83%, while the tech-heavy Nasdaq added 0.91%.
Shares of the home-improvement retailer witnessed a gain of 11.25% over the previous month, beating the performance of the Retail-Wholesale sector with its gain of 4.12%, and the S&P 500's gain of 0.38%.
The upcoming earnings release of Home Depot will be of great interest to investors. The company is forecasted to report an EPS of $2.53, showcasing a 19.17% downward movement from the corresponding quarter of the prior year. Our most recent consensus estimate is calling for quarterly revenue of $38.18 billion, down 3.85% from the year-ago period.
For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $14.5 per share and a revenue of $164.63 billion, representing changes of -4.86% and +3.21%, respectively, from the prior year.
Investors should also pay attention to any latest changes in analyst estimates for Home Depot. These revisions typically reflect the latest short-term business trends, which can change frequently. Therefore, positive revisions in estimates convey analysts' confidence in the business performance and profit potential.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. 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, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 0.05% lower within the past month. Right now, Home Depot possesses a Zacks Rank of #4 (Sell).
From a valuation perspective, Home Depot is currently exchanging hands at a Forward P/E ratio of 26.65. This expresses a premium compared to the average Forward P/E of 23.55 of its industry.
It is also worth noting that HD currently has a PEG ratio of 14.41. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. HD's industry had an average PEG ratio of 2.14 as of yesterday's close.
The Retail - Home Furnishings industry is part of the Retail-Wholesale sector. This group has a Zacks Industry Rank of 188, putting it in the bottom 24% of all 250+ industries.
The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding trading sessions.
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Home Depot (HD) Stock Declines While Market Improves: Some Information for Investors
Home Depot (HD - Free Report) ended the recent trading session at $380.36, demonstrating a -1.6% change from the preceding day's closing price. The stock trailed the S&P 500, which registered a daily gain of 0.41%. Elsewhere, the Dow lost 0.83%, while the tech-heavy Nasdaq added 0.91%.
Shares of the home-improvement retailer witnessed a gain of 11.25% over the previous month, beating the performance of the Retail-Wholesale sector with its gain of 4.12%, and the S&P 500's gain of 0.38%.
The upcoming earnings release of Home Depot will be of great interest to investors. The company is forecasted to report an EPS of $2.53, showcasing a 19.17% downward movement from the corresponding quarter of the prior year. Our most recent consensus estimate is calling for quarterly revenue of $38.18 billion, down 3.85% from the year-ago period.
For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $14.5 per share and a revenue of $164.63 billion, representing changes of -4.86% and +3.21%, respectively, from the prior year.
Investors should also pay attention to any latest changes in analyst estimates for Home Depot. These revisions typically reflect the latest short-term business trends, which can change frequently. Therefore, positive revisions in estimates convey analysts' confidence in the business performance and profit potential.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. 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, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 0.05% lower within the past month. Right now, Home Depot possesses a Zacks Rank of #4 (Sell).
From a valuation perspective, Home Depot is currently exchanging hands at a Forward P/E ratio of 26.65. This expresses a premium compared to the average Forward P/E of 23.55 of its industry.
It is also worth noting that HD currently has a PEG ratio of 14.41. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. HD's industry had an average PEG ratio of 2.14 as of yesterday's close.
The Retail - Home Furnishings industry is part of the Retail-Wholesale sector. This group has a Zacks Industry Rank of 188, putting it in the bottom 24% of all 250+ industries.
The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding trading sessions.