Home Depot (HD - Free Report) closed the most recent trading day at $158.14, moving -1.46% from the previous trading session. This move was narrower than the S&P 500's daily loss of 2.71%. Elsewhere, the Dow lost 2.91%, while the tech-heavy Nasdaq lost 2.21%.
Prior to today's trading, shares of the home-improvement retailer had lost 5.21% over the past month. This has was narrower than the Retail-Wholesale sector's loss of 8.9% and the S&P 500's loss of 8.68% 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. On that day, HD is projected to report earnings of $2.17 per share, which would represent 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.
HD's full-year Zacks Consensus Estimates are calling for earnings of $9.81 per share and revenue of $108.26 billion. These results would represent year-over-year changes of +31.5% and +7.29%, respectively.
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. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Within the past 30 days, our consensus EPS projection has moved 0% lower. HD currently has a Zacks Rank of #3 (Hold).
In terms of valuation, HD is currently trading at a Forward P/E ratio of 16.37. This valuation marks a premium compared to its industry's average Forward P/E of 10.94.
Meanwhile, HD's PEG ratio is currently 1.27. 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 1.08 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 162, which puts it in the bottom 37% 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.