Home Depot (HD - Free Report) closed at $217.68 in the latest trading session, marking a -0.04% move from the prior day. This move was narrower than the S&P 500's daily loss of 0.52%. At the same time, the Dow lost 0.13%, and the tech-heavy Nasdaq lost 1.4%.
Heading into today, shares of the home-improvement retailer had gained 11.05% over the past month, lagging the Retail-Wholesale sector's gain of 17.23% and the S&P 500's gain of 13.35% in that time.
HD will be looking to display strength as it nears its next earnings release, which is expected to be May 19, 2020. In that report, analysts expect HD to post earnings of $2.25 per share. This would mark a year-over-year decline of 0.88%. Meanwhile, our latest consensus estimate is calling for revenue of $27.39 billion, up 3.84% from the prior-year quarter.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $9.86 per share and revenue of $111.72 billion. These totals would mark changes of -3.8% and +1.36%, respectively, from last year.
Any recent changes to analyst estimates for HD should also be noted by investors. These recent revisions tend to reflect the evolving nature of short-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
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 4.48% lower. HD is currently sporting a Zacks Rank of #4 (Sell).
Digging into valuation, HD currently has a Forward P/E ratio of 22.09. This represents a premium compared to its industry's average Forward P/E of 14.41.
Investors should also note that HD has a PEG ratio of 2.01 right now. 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 1.6 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 209, putting it in the bottom 19% 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.