Home Depot (HD - Free Report) closed the most recent trading day at $215.61, moving -0.76% from the previous trading session. This move lagged the S&P 500's daily loss of 0.65%. Elsewhere, the Dow lost 0.42%, while the tech-heavy Nasdaq lost 0.46%.
Heading into today, shares of the home-improvement retailer had gained 4.71% over the past month, lagging the Retail-Wholesale sector's gain of 5.76% and outpacing the S&P 500's gain of 4.11% in that time.
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 $3.09, up 1.31% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $30.99 billion, up 1.75% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $10.16 per share and revenue of $111.31 billion, which would represent changes of +2.73% and +2.87%, respectively, from the prior year.
It is also important to note the recent changes to analyst estimates for HD. These revisions help to show the ever-changing nature of near-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.
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 0.59% higher. HD is currently sporting a Zacks Rank of #3 (Hold).
Valuation is also important, so investors should note that HD has a Forward P/E ratio of 21.39 right now. For comparison, its industry has an average Forward P/E of 13.13, which means HD is trading at a premium to the group.
Investors should also note that HD has a PEG ratio of 2 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. The Building Products - Retail industry currently had an average PEG ratio of 1.38 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 91, which puts it in the top 36% of all 250+ industries.
The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. 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.