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Home Depot (HD) Stock Sinks As Market Gains: Here's Why
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In the latest close session, Home Depot (HD - Free Report) was down 2.41% at $321.63. The stock's change was less than the S&P 500's daily gain of 0.11%. At the same time, the Dow lost 0.13%, and the tech-heavy Nasdaq gained 0.18%.
The home-improvement retailer's stock has dropped by 10.72% in the past month, falling short of the Retail-Wholesale sector's loss of 3.81% and the S&P 500's loss of 4.28%.
The upcoming earnings release of Home Depot will be of great interest to investors. On that day, Home Depot is projected to report earnings of $3.42 per share, which would represent a year-over-year decline of 3.93%. Meanwhile, our latest consensus estimate is calling for revenue of $41.53 billion, up 4.2% from the prior-year quarter.
HD's full-year Zacks Consensus Estimates are calling for earnings of $15.03 per share and revenue of $171.13 billion. These results would represent year-over-year changes of +2.31% and +3.91%, respectively.
Investors should also take note of any recent adjustments to analyst estimates for Home Depot. These revisions help to show the ever-changing nature of near-term business trends. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the business health and profitability.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational 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 last 30 days, the Zacks Consensus EPS estimate has witnessed a 0.05% decrease. Currently, Home Depot is carrying a Zacks Rank of #3 (Hold).
In terms of valuation, Home Depot is presently being traded at a Forward P/E ratio of 21.93. This indicates a premium in contrast to its industry's Forward P/E of 18.6.
Meanwhile, HD's PEG ratio is currently 3.6. 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 1.4 as of yesterday's close.
The Retail - Home Furnishings industry is part of the Retail-Wholesale sector. With its current Zacks Industry Rank of 162, this industry ranks in the bottom 34% of all industries, numbering over 250.
The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within 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 Sinks As Market Gains: Here's Why
In the latest close session, Home Depot (HD - Free Report) was down 2.41% at $321.63. The stock's change was less than the S&P 500's daily gain of 0.11%. At the same time, the Dow lost 0.13%, and the tech-heavy Nasdaq gained 0.18%.
The home-improvement retailer's stock has dropped by 10.72% in the past month, falling short of the Retail-Wholesale sector's loss of 3.81% and the S&P 500's loss of 4.28%.
The upcoming earnings release of Home Depot will be of great interest to investors. On that day, Home Depot is projected to report earnings of $3.42 per share, which would represent a year-over-year decline of 3.93%. Meanwhile, our latest consensus estimate is calling for revenue of $41.53 billion, up 4.2% from the prior-year quarter.
HD's full-year Zacks Consensus Estimates are calling for earnings of $15.03 per share and revenue of $171.13 billion. These results would represent year-over-year changes of +2.31% and +3.91%, respectively.
Investors should also take note of any recent adjustments to analyst estimates for Home Depot. These revisions help to show the ever-changing nature of near-term business trends. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the business health and profitability.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational 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 last 30 days, the Zacks Consensus EPS estimate has witnessed a 0.05% decrease. Currently, Home Depot is carrying a Zacks Rank of #3 (Hold).
In terms of valuation, Home Depot is presently being traded at a Forward P/E ratio of 21.93. This indicates a premium in contrast to its industry's Forward P/E of 18.6.
Meanwhile, HD's PEG ratio is currently 3.6. 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 1.4 as of yesterday's close.
The Retail - Home Furnishings industry is part of the Retail-Wholesale sector. With its current Zacks Industry Rank of 162, this industry ranks in the bottom 34% of all industries, numbering over 250.
The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within 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.