In the latest trading session, Home Depot (HD - Free Report) closed at $207.15, marking a +0.15% move from the previous day. This change outpaced the S&P 500's 0% on the day. Elsewhere, the Dow gained 0.07%, while the tech-heavy Nasdaq added 0.06%.
Prior to today's trading, shares of the home-improvement retailer had gained 3.8% over the past month. This has outpaced the Retail-Wholesale sector's gain of 0.86% and the S&P 500's gain of 0.78% in that time.
Investors will be hoping for strength from HD as it approaches its next earnings release, which is expected to be November 13, 2018. On that day, HD is projected to report earnings of $2.28 per share, which would represent year-over-year growth of 23.91%. Meanwhile, our latest consensus estimate is calling for revenue of $26.26 billion, up 4.93% from the prior-year quarter.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $9.57 per share and revenue of $108.27 billion. These totals would mark changes of +28.28% and +7.3%, respectively, from last year.
It is also important to note the recent changes to analyst estimates for HD. These revisions typically reflect the latest short-term business trends, which can change frequently. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Our research shows that these estimate changes are directly correlated with near-term stock prices. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable 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. Within the past 30 days, our consensus EPS projection has moved 0.01% lower. HD is currently a Zacks Rank #3 (Hold).
In terms of valuation, HD is currently trading at a Forward P/E ratio of 21.61. For comparison, its industry has an average Forward P/E of 15.18, which means HD is trading at a premium to the group.
We can also see that HD currently has a PEG ratio of 1.63. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. Building Products - Retail stocks are, on average, holding a PEG ratio of 1.52 based on yesterday's closing prices.
The Building Products - Retail industry is part of the Retail-Wholesale sector. This industry currently has a Zacks Industry Rank of 209, which puts it in the bottom 18% of all 250+ industries.
The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. 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.