In the latest trading session, Home Depot (HD - Free Report) closed at $204.76, marking a -0.05% move from the previous day. This move lagged the S&P 500's daily gain of 0.05%. At the same time, the Dow added 0.26%, and the tech-heavy Nasdaq gained 0.3%.
Heading into today, shares of the home-improvement retailer had gained 11.69% over the past month, outpacing the Retail-Wholesale sector's gain of 4.01% and the S&P 500's gain of 3.08% in that time.
Wall Street will be looking for positivity from HD as it approaches its next earnings report date. In that report, analysts expect HD to post earnings of $2.20 per share. This would mark 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.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $10.09 per share and revenue of $111.35 billion. These totals would mark changes of +2.02% and +2.91%, respectively, from last 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. 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. 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.
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 0.01% lower. HD is holding a Zacks Rank of #3 (Hold) right now.
Looking at its valuation, HD is holding a Forward P/E ratio of 20.3. This valuation marks a premium compared to its industry's average Forward P/E of 13.58.
Meanwhile, HD's PEG ratio is currently 1.78. 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 1.36 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 169, which puts it in the bottom 34% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our 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.
You can find more information on all of these metrics, and much more, on Zacks.com.