Home Depot (HD - Free Report) closed at $194.43 in the latest trading session, marking a -0.62% move from the prior day. This move lagged the S&P 500's daily of 0%. At the same time, the Dow lost 0.3%, and the tech-heavy Nasdaq gained 0.25%.
Coming into today, shares of the home-improvement retailer had gained 6.44% in the past month. In that same time, the Retail-Wholesale sector gained 2.45%, while the S&P 500 gained 2.36%.
Wall Street will be looking for positivity from HD as it approaches its next earnings report date. The company is expected to report EPS of $2.20, up 5.77% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $26.44 billion, up 5.98% from the prior-year quarter.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $10.08 per share and revenue of $111.38 billion. These totals would mark changes of +1.92% and +2.93%, respectively, from last year.
Any recent changes to analyst estimates for HD should also be noted by investors. Recent revisions tend to reflect the latest near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
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 0.03% lower. 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 19.41. Its industry sports an average Forward P/E of 11.87, so we one might conclude that HD is trading at a premium comparatively.
Also, we should mention that HD has a PEG ratio of 1.7. 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. The Building Products - Retail was holding an average PEG ratio of 1.11 at yesterday's closing price.
The Building Products - Retail industry is part of the Retail-Wholesale sector. This industry currently has a Zacks Industry Rank of 163, 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.
Make sure to utilize Zacks. Com to follow all of these stock-moving metrics, and more, in the coming trading sessions.