Home Depot (HD - Free Report) closed the most recent trading day at $226.67, moving -0.03% from the previous trading session. This move was narrower than the S&P 500's daily loss of 1.56%. Elsewhere, the Dow lost 1.19%, while the tech-heavy Nasdaq lost 1.67%.
Prior to today's trading, shares of the home-improvement retailer had lost 2.63% over the past month. This has was narrower than the Retail-Wholesale sector's loss of 3.42% and lagged the S&P 500's loss of 1.22% in that time.
Investors will be hoping for strength from HD as it approaches its next earnings release. In that report, analysts expect HD to post earnings of $2.52 per share. This would mark year-over-year growth of 0.4%. Meanwhile, our latest consensus estimate is calling for revenue of $27.46 billion, up 4.39% from the prior-year quarter.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $10.11 per share and revenue of $110.72 billion. These totals would mark changes of +2.22% and +2.32%, respectively, from last 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. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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% higher. HD is currently a Zacks Rank #3 (Hold).
Looking at its valuation, HD is holding a Forward P/E ratio of 22.42. For comparison, its industry has an average Forward P/E of 13.79, which means HD is trading at a premium to the group.
Investors should also note that HD has a PEG ratio of 2.22 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 1.33 at yesterday's closing price.
The Building Products - Retail industry is part of the Retail-Wholesale sector. This industry currently has a Zacks Industry Rank of 106, which puts it in the top 42% 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.
You can find more information on all of these metrics, and much more, on Zacks.com.