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Home Depot (HD) Gains As Market Dips: What You Should Know
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Home Depot (HD - Free Report) closed the most recent trading day at $348.86, moving +1.12% from the previous trading session. The stock's performance was ahead of the S&P 500's daily loss of 0.05%. On the other hand, the Dow registered a loss of 0.09%, and the technology-centric Nasdaq decreased by 0.24%.
The home-improvement retailer's shares have seen an increase of 7.41% over the last month, surpassing the Retail-Wholesale sector's loss of 7.87% and the S&P 500's loss of 1.42%.
Market participants will be closely following the financial results of Home Depot in its upcoming release. In that report, analysts expect Home Depot to post earnings of $4.71 per share. This would mark year-over-year growth of 0.64%. Meanwhile, our latest consensus estimate is calling for revenue of $47.5 billion, up 4.92% from the prior-year quarter.
For the full year, the Zacks Consensus Estimates are projecting earnings of $15.01 per share and revenue of $171.65 billion, which would represent changes of +2.18% and +4.23%, respectively, from the prior year.
Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Home Depot. These revisions typically reflect the latest short-term business trends, which can change frequently. As such, positive estimate revisions reflect analyst optimism about the business and profitability.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. 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, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed a 0.04% decrease. Currently, Home Depot is carrying a Zacks Rank of #3 (Hold).
Looking at valuation, Home Depot is presently trading at a Forward P/E ratio of 22.98. For comparison, its industry has an average Forward P/E of 22.98, which means Home Depot is trading at no noticeable deviation to the group.
Also, we should mention that HD has a PEG ratio of 3.98. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. The Retail - Home Furnishings industry had an average PEG ratio of 2.05 as trading concluded yesterday.
The Retail - Home Furnishings industry is part of the Retail-Wholesale sector. With its current Zacks Industry Rank of 230, this industry ranks in the bottom 6% of all industries, numbering over 250.
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.
Ensure to harness Zacks.com to stay updated with all these stock-shifting metrics, among others, in the next trading sessions.
View the Zacks #1 Rank List
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Home Depot (HD) Gains As Market Dips: What You Should Know
Home Depot (HD - Free Report) closed the most recent trading day at $348.86, moving +1.12% from the previous trading session. The stock's performance was ahead of the S&P 500's daily loss of 0.05%. On the other hand, the Dow registered a loss of 0.09%, and the technology-centric Nasdaq decreased by 0.24%.
The home-improvement retailer's shares have seen an increase of 7.41% over the last month, surpassing the Retail-Wholesale sector's loss of 7.87% and the S&P 500's loss of 1.42%.
Market participants will be closely following the financial results of Home Depot in its upcoming release. In that report, analysts expect Home Depot to post earnings of $4.71 per share. This would mark year-over-year growth of 0.64%. Meanwhile, our latest consensus estimate is calling for revenue of $47.5 billion, up 4.92% from the prior-year quarter.
For the full year, the Zacks Consensus Estimates are projecting earnings of $15.01 per share and revenue of $171.65 billion, which would represent changes of +2.18% and +4.23%, respectively, from the prior year.
Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Home Depot. These revisions typically reflect the latest short-term business trends, which can change frequently. As such, positive estimate revisions reflect analyst optimism about the business and profitability.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. 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, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed a 0.04% decrease. Currently, Home Depot is carrying a Zacks Rank of #3 (Hold).
Looking at valuation, Home Depot is presently trading at a Forward P/E ratio of 22.98. For comparison, its industry has an average Forward P/E of 22.98, which means Home Depot is trading at no noticeable deviation to the group.
Also, we should mention that HD has a PEG ratio of 3.98. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. The Retail - Home Furnishings industry had an average PEG ratio of 2.05 as trading concluded yesterday.
The Retail - Home Furnishings industry is part of the Retail-Wholesale sector. With its current Zacks Industry Rank of 230, this industry ranks in the bottom 6% of all industries, numbering over 250.
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.
Ensure to harness Zacks.com to stay updated with all these stock-shifting metrics, among others, in the next trading sessions.