Home Depot (HD - Free Report) closed at $199.73 in the latest trading session, marking a +0.63% move from the prior day. This change outpaced the S&P 500's 0.58% gain on the day. Meanwhile, the Dow gained 0.14%, and the Nasdaq, a tech-heavy index, added 1.66%.
Coming into today, shares of the home-improvement retailer had gained 27.53% in the past month. In that same time, the Retail-Wholesale sector gained 10.51%, while the S&P 500 gained 3.15%.
Wall Street will be looking for positivity from HD as it approaches its next earnings report date. This is expected to be May 19, 2020. In that report, analysts expect HD to post earnings of $2.23 per share. This would mark a year-over-year decline of 1.76%. Our most recent consensus estimate is calling for quarterly revenue of $27.05 billion, up 2.54% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $9.88 per share and revenue of $112.24 billion. These totals would mark changes of -3.61% and +1.83%, respectively, from last year.
Investors should also note any recent changes to analyst estimates for HD. These revisions typically reflect the latest short-term business trends, which can change frequently. 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. 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 5.9% lower. 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 20.09 right now. This valuation marks a premium compared to its industry's average Forward P/E of 10.62.
Meanwhile, HD's PEG ratio is currently 1.83. 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 industry currently had an average PEG ratio of 1.46 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 148, which puts it in the bottom 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.
Make sure to utilize Zacks. Com to follow all of these stock-moving metrics, and more, in the coming trading sessions.