Home Depot (HD) closed the most recent trading day at $243.64, moving -0.12% from the previous trading session. This move lagged the S&P 500's daily gain of 0.47%. Meanwhile, the Dow gained 0.4%, and the Nasdaq, a tech-heavy index, added 0.87%.
Prior to today's trading, shares of the home-improvement retailer had gained 4.72% over the past month. This has outpaced the Retail-Wholesale sector's gain of 3.92% and the S&P 500's gain of 1.43% in that time.
Wall Street will be looking for positivity from HD as it approaches its next earnings report date. This is expected to be February 25, 2020. In that report, analysts expect HD to post earnings of $2.10 per share. This would mark a year-over-year decline of 6.67%. Our most recent consensus estimate is calling for quarterly revenue of $25.76 billion, down 2.74% from the year-ago period.
Investors might also notice recent changes to analyst estimates for HD. Recent revisions tend to reflect the latest near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, 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 0.26% lower. HD is currently a Zacks Rank #3 (Hold).
In terms of valuation, HD is currently trading at a Forward P/E ratio of 23.31. This valuation marks a premium compared to its industry's average Forward P/E of 14.73.
Also, we should mention that HD has a PEG ratio of 2.07. 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. Building Products - Retail stocks are, on average, holding a PEG ratio of 1.31 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 106, which puts it in the top 42% 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.