In the latest trading session, Home Depot (HD - Free Report) closed at $188, marking a +0.41% move from the previous day. This change outpaced the S&P 500's 0.25% loss on the day. At the same time, the Dow added 0.04%, and the tech-heavy Nasdaq lost 0.53%.
Coming into today, shares of the home-improvement retailer had lost 3.34% in the past month. In that same time, the Retail-Wholesale sector lost 0.61%, while the S&P 500 lost 2.35%.
HD will be looking to display strength as it nears its next earnings release, which is expected to be November 13, 2018. The company is expected to report EPS of $2.27, up 23.37% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $26.25 billion, up 4.89% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $9.56 per share and revenue of $108.23 billion. These totals would mark changes of +28.15% and +7.26%, respectively, from last year.
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. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
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 0.12% lower within the past month. HD is currently sporting a Zacks Rank of #3 (Hold).
Investors should also note HD's current valuation metrics, including its Forward P/E ratio of 19.58. For comparison, its industry has an average Forward P/E of 13.13, which means HD is trading at a premium to the group.
Meanwhile, HD's PEG ratio is currently 1.48. 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. Building Products - Retail stocks are, on average, holding a PEG ratio of 1.35 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 114, putting it in the top 44% 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.
To follow HD in the coming trading sessions, be sure to utilize Zacks.com.