Home Depot (HD - Free Report) closed at $231.08 in the latest trading session, marking a -0.41% move from the prior day. This change was narrower than the S&P 500's daily loss of 1.23%. Meanwhile, the Dow lost 1.28%, and the Nasdaq, a tech-heavy index, lost 1.13%.
Coming into today, shares of the home-improvement retailer had gained 1.8% in the past month. In that same time, the Retail-Wholesale sector lost 0.49%, while the S&P 500 gained 1.95%.
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 $2.52 per share, which would represent year-over-year growth of 0.4%. Our most recent consensus estimate is calling for quarterly revenue of $27.46 billion, up 4.4% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $10.11 per share and revenue of $110.72 billion, which would represent changes of +2.22% and +2.33%, respectively, from the prior year.
Any recent changes to analyst estimates for HD should also be noted by investors. 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.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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. Within the past 30 days, our consensus EPS projection has moved 0.01% higher. HD currently has a Zacks Rank of #3 (Hold).
Digging into valuation, HD currently has a Forward P/E ratio of 22.94. This represents a premium compared to its industry's average Forward P/E of 14.21.
Meanwhile, HD's PEG ratio is currently 2.4. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. The Building Products - Retail industry currently had an average PEG ratio of 1.41 as of yesterday's close.
The Building Products - Retail industry is part of the Retail-Wholesale sector. This group has a Zacks Industry Rank of 72, putting it in the top 29% 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.