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Home Depot (HD) Dips More Than Broader Markets: What You Should Know
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In the latest trading session, Home Depot (HD - Free Report) closed at $178.75, marking a -0.61% move from the previous day. This change lagged the S&P 500's daily loss of 0.43%. Elsewhere, the Dow lost 0.5%, while the tech-heavy Nasdaq added 0.26%.
Prior to today's trading, shares of the home-improvement retailer had lost 14.79% over the past month. This has lagged the Retail-Wholesale sector's loss of 9.86% and the S&P 500's loss of 4.68% 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. In that report, analysts expect HD to post earnings of $2.28 per share. This would mark year-over-year growth of 23.91%. Meanwhile, our latest consensus estimate is calling for revenue of $26.28 billion, up 5.02% 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 $108.29 billion. These totals would mark changes of +28.28% and +7.32%, respectively, from last year.
Investors might also notice recent changes to analyst estimates for HD. Recent revisions tend to reflect the latest near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating 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 sporting a Zacks Rank of #4 (Sell).
Digging into valuation, HD currently has a Forward P/E ratio of 18.79. This represents a premium compared to its industry's average Forward P/E of 14.63.
Also, we should mention that HD has a PEG ratio of 1.42. 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 1.32 based on yesterday's closing prices.
The Building Products - Retail industry is part of the Retail-Wholesale sector. This group has a Zacks Industry Rank of 216, putting it in the bottom 15% 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.
To follow HD in the coming trading sessions, be sure to utilize Zacks.com.
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Home Depot (HD) Dips More Than Broader Markets: What You Should Know
In the latest trading session, Home Depot (HD - Free Report) closed at $178.75, marking a -0.61% move from the previous day. This change lagged the S&P 500's daily loss of 0.43%. Elsewhere, the Dow lost 0.5%, while the tech-heavy Nasdaq added 0.26%.
Prior to today's trading, shares of the home-improvement retailer had lost 14.79% over the past month. This has lagged the Retail-Wholesale sector's loss of 9.86% and the S&P 500's loss of 4.68% 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. In that report, analysts expect HD to post earnings of $2.28 per share. This would mark year-over-year growth of 23.91%. Meanwhile, our latest consensus estimate is calling for revenue of $26.28 billion, up 5.02% 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 $108.29 billion. These totals would mark changes of +28.28% and +7.32%, respectively, from last year.
Investors might also notice recent changes to analyst estimates for HD. Recent revisions tend to reflect the latest near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating 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 sporting a Zacks Rank of #4 (Sell).
Digging into valuation, HD currently has a Forward P/E ratio of 18.79. This represents a premium compared to its industry's average Forward P/E of 14.63.
Also, we should mention that HD has a PEG ratio of 1.42. 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 1.32 based on yesterday's closing prices.
The Building Products - Retail industry is part of the Retail-Wholesale sector. This group has a Zacks Industry Rank of 216, putting it in the bottom 15% 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.
To follow HD in the coming trading sessions, be sure to utilize Zacks.com.