Home Depot (HD - Free Report) closed at $200.90 in the latest trading session, marking a -1.3% move from the prior day. This move lagged the S&P 500's daily loss of 0.61%. Elsewhere, the Dow lost 0.72%, while the tech-heavy Nasdaq lost 0.56%.
Heading into today, shares of the home-improvement retailer had gained 11.57% over the past month, outpacing the Retail-Wholesale sector's gain of 6.68% and the S&P 500's gain of 5.68% in that time.
Investors will be hoping for strength from HD as it approaches its next earnings release. On that day, HD is projected to report earnings of $2.20 per share, which would represent year-over-year growth of 5.77%. Our most recent consensus estimate is calling for quarterly revenue of $26.43 billion, up 5.94% from the year-ago period.
HD's full-year Zacks Consensus Estimates are calling for earnings of $10.08 per share and revenue of $111.35 billion. These results would represent year-over-year changes of +1.92% and +2.91%, respectively.
Any recent changes to analyst estimates for HD should also be noted by investors. These recent revisions tend to reflect the evolving nature of short-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
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. Over the past month, the Zacks Consensus EPS estimate has moved 0.01% lower. HD is currently a Zacks Rank #3 (Hold).
In terms of valuation, HD is currently trading at a Forward P/E ratio of 20.19. This represents a premium compared to its industry's average Forward P/E of 13.09.
Investors should also note that HD has a PEG ratio of 1.77 right now. 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 1.16 at yesterday's closing price.
The Building Products - Retail industry is part of the Retail-Wholesale sector. This group has a Zacks Industry Rank of 100, 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.