In the latest trading session, Home Depot (HD - Free Report) closed at $210.75, marking a -0.59% move from the previous day. This move lagged the S&P 500's daily gain of 0.45%. Elsewhere, the Dow gained 0.29%, while the tech-heavy Nasdaq added 0.75%.
Heading into today, shares of the home-improvement retailer had gained 7.07% over the past month, outpacing the Retail-Wholesale sector's gain of 6.56% and the S&P 500's gain of 3.84% in that time.
Investors will be hoping for strength from HD as it approaches its next earnings release. The company is expected to report EPS of $3.09, up 1.31% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $30.97 billion, up 1.65% from the year-ago period.
HD's full-year Zacks Consensus Estimates are calling for earnings of $10.10 per share and revenue of $111.28 billion. These results would represent year-over-year changes of +2.12% and +2.84%, 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. With this in mind, we can consider positive estimate revisions a sign of optimism about 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.
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 0.01% 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 20.99. For comparison, its industry has an average Forward P/E of 12.99, which means HD is trading at a premium to the group.
Also, we should mention that HD has a PEG ratio of 1.96. 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 1.33 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 66, which puts it in the top 26% 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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.