In the latest trading session, Home Depot (HD - Free Report) closed at $218.93, marking a -0.33% move from the previous day. This change was narrower than the S&P 500's daily loss of 0.71%. At the same time, the Dow lost 0.81%, and the tech-heavy Nasdaq lost 0.79%.
Heading into today, shares of the home-improvement retailer had gained 3.13% over the past month, lagging the Retail-Wholesale sector's gain of 4.83% and the S&P 500's gain of 4.77% 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 $2.10, down 6.67% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $25.76 billion, down 2.74% from the prior-year quarter.
For the full year, our Zacks Consensus Estimates are projecting earnings of $10.08 per share and revenue of $110.20 billion, which would represent changes of +1.92% and +1.85%, respectively, from the prior 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 a result, we can interpret positive estimate revisions as a good sign for 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. The Zacks Consensus EPS estimate has moved 0.04% higher within the past month. HD currently has a Zacks Rank of #3 (Hold).
Valuation is also important, so investors should note that HD has a Forward P/E ratio of 21.8 right now. This represents a premium compared to its industry's average Forward P/E of 14.08.
We can also see that HD currently has a PEG ratio of 1.94. 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. HD's industry had an average PEG ratio of 1.26 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 27, which puts it in the top 11% 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.