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Home Depot (HD) Gains But Lags Market: What You Should Know
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In the latest trading session, Home Depot (HD - Free Report) closed at $201.30, marking a +0.57% move from the previous day. The stock lagged the S&P 500's daily gain of 0.62%. Meanwhile, the Dow gained 0.52%, and the Nasdaq, a tech-heavy index, added 0.86%.
Coming into today, shares of the home-improvement retailer had gained 0.38% in the past month. In that same time, the Retail-Wholesale sector gained 2.64%, while the S&P 500 gained 1.98%.
Investors will be hoping for strength from HD as it approaches its next earnings release, which is expected to be November 13, 2018. The company is expected to report EPS of $2.28, up 23.91% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $26.26 billion, up 4.92% from the year-ago period.
HD's full-year Zacks Consensus Estimates are calling for earnings of $9.56 per share and revenue of $108.26 billion. These results would represent year-over-year changes of +28.15% and +7.29%, respectively.
It is also important to note the recent changes to analyst estimates for HD. These revisions help to show the ever-changing nature of near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
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. The Zacks Consensus EPS estimate has moved 1.4% higher within the past month. HD is holding a Zacks Rank of #3 (Hold) right now.
Valuation is also important, so investors should note that HD has a Forward P/E ratio of 20.94 right now. This valuation marks a premium compared to its industry's average Forward P/E of 14.5.
Meanwhile, HD's PEG ratio is currently 1.58. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. The Building Products - Retail industry currently had an average PEG ratio of 1.32 as of yesterday's close.
The Building Products - Retail industry is part of the Retail-Wholesale sector. This industry currently has a Zacks Industry Rank of 175, which puts it in the bottom 31% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual 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.
You can find more information on all of these metrics, and much more, on Zacks.com.
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Home Depot (HD) Gains But Lags Market: What You Should Know
In the latest trading session, Home Depot (HD - Free Report) closed at $201.30, marking a +0.57% move from the previous day. The stock lagged the S&P 500's daily gain of 0.62%. Meanwhile, the Dow gained 0.52%, and the Nasdaq, a tech-heavy index, added 0.86%.
Coming into today, shares of the home-improvement retailer had gained 0.38% in the past month. In that same time, the Retail-Wholesale sector gained 2.64%, while the S&P 500 gained 1.98%.
Investors will be hoping for strength from HD as it approaches its next earnings release, which is expected to be November 13, 2018. The company is expected to report EPS of $2.28, up 23.91% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $26.26 billion, up 4.92% from the year-ago period.
HD's full-year Zacks Consensus Estimates are calling for earnings of $9.56 per share and revenue of $108.26 billion. These results would represent year-over-year changes of +28.15% and +7.29%, respectively.
It is also important to note the recent changes to analyst estimates for HD. These revisions help to show the ever-changing nature of near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
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. The Zacks Consensus EPS estimate has moved 1.4% higher within the past month. HD is holding a Zacks Rank of #3 (Hold) right now.
Valuation is also important, so investors should note that HD has a Forward P/E ratio of 20.94 right now. This valuation marks a premium compared to its industry's average Forward P/E of 14.5.
Meanwhile, HD's PEG ratio is currently 1.58. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. The Building Products - Retail industry currently had an average PEG ratio of 1.32 as of yesterday's close.
The Building Products - Retail industry is part of the Retail-Wholesale sector. This industry currently has a Zacks Industry Rank of 175, which puts it in the bottom 31% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual 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.
You can find more information on all of these metrics, and much more, on Zacks.com.