Home Depot (HD - Free Report) closed at $171.82 in the latest trading session, marking a +0.94% move from the prior day. The stock outpaced the S&P 500's daily gain of 0.85%. At the same time, the Dow added 1.15%, and the tech-heavy Nasdaq gained 0.77%.
Prior to today's trading, shares of the home-improvement retailer had lost 3.1% over the past month. This has was narrower than the Retail-Wholesale sector's loss of 9.73% and the S&P 500's loss of 9.35% in that time.
Investors will be hoping for strength from HD as it approaches 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.
It is also important to note the 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.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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.
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. Over the past month, the Zacks Consensus EPS estimate has moved 0.01% higher. HD is currently a Zacks Rank #2 (Buy).
Digging into valuation, HD currently has a Forward P/E ratio of 17.36. This valuation marks a premium compared to its industry's average Forward P/E of 10.94.
Investors should also note that HD has a PEG ratio of 1.34 right now. 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 1.07 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 104, putting 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.
Make sure to utilize Zacks. Com to follow all of these stock-moving metrics, and more, in the coming trading sessions.