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Home Depot (HD) Outpaces Stock Market Gains: What You Should Know
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Home Depot (HD - Free Report) closed the most recent trading day at $170.06, moving +1.24% from the previous trading session. This change outpaced the S&P 500's 0.01% gain on the day. Elsewhere, the Dow gained 0.35%, while the tech-heavy Nasdaq added 0.45%.
Prior to today's trading, shares of the home-improvement retailer had lost 3.24% over the past month. This has was narrower than the Retail-Wholesale sector's loss of 6.6% and the S&P 500's loss of 7.29% in that time.
HD will be looking to display strength as it nears its next earnings release, which is expected to be February 19, 2019. In that report, analysts expect HD to post earnings of $2.17 per share. This would mark year-over-year growth of 28.4%. Our most recent consensus estimate is calling for quarterly revenue of $26.60 billion, up 11.37% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $9.81 per share and revenue of $108.26 billion, which would represent changes of +31.5% and +7.29%, respectively, from the prior year.
Investors might also notice recent changes to analyst estimates for HD. These recent revisions tend to reflect the evolving nature of short-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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. The Zacks Consensus EPS estimate has moved 0% lower within the past month. HD is currently sporting a Zacks Rank of #3 (Hold).
In terms of valuation, HD is currently trading at a Forward P/E ratio of 17.13. For comparison, its industry has an average Forward P/E of 11.37, which means HD is trading at a premium to the group.
Also, we should mention that HD has a PEG ratio of 1.33. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. HD's industry had an average PEG ratio of 1.06 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 102, which puts it in the top 40% 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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
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Home Depot (HD) Outpaces Stock Market Gains: What You Should Know
Home Depot (HD - Free Report) closed the most recent trading day at $170.06, moving +1.24% from the previous trading session. This change outpaced the S&P 500's 0.01% gain on the day. Elsewhere, the Dow gained 0.35%, while the tech-heavy Nasdaq added 0.45%.
Prior to today's trading, shares of the home-improvement retailer had lost 3.24% over the past month. This has was narrower than the Retail-Wholesale sector's loss of 6.6% and the S&P 500's loss of 7.29% in that time.
HD will be looking to display strength as it nears its next earnings release, which is expected to be February 19, 2019. In that report, analysts expect HD to post earnings of $2.17 per share. This would mark year-over-year growth of 28.4%. Our most recent consensus estimate is calling for quarterly revenue of $26.60 billion, up 11.37% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $9.81 per share and revenue of $108.26 billion, which would represent changes of +31.5% and +7.29%, respectively, from the prior year.
Investors might also notice recent changes to analyst estimates for HD. These recent revisions tend to reflect the evolving nature of short-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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. The Zacks Consensus EPS estimate has moved 0% lower within the past month. HD is currently sporting a Zacks Rank of #3 (Hold).
In terms of valuation, HD is currently trading at a Forward P/E ratio of 17.13. For comparison, its industry has an average Forward P/E of 11.37, which means HD is trading at a premium to the group.
Also, we should mention that HD has a PEG ratio of 1.33. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. HD's industry had an average PEG ratio of 1.06 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 102, which puts it in the top 40% 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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.