Home Depot (HD) closed the most recent trading day at $301.82, moving -0.24% from the previous trading session. This move lagged the S&P 500's daily gain of 0.02%. At the same time, the Dow lost 0.2%, and the tech-heavy Nasdaq gained 0.22%.
Prior to today's trading, shares of the home-improvement retailer had lost 8.15% over the past month. This has lagged the Retail-Wholesale sector's loss of 3.11% and the S&P 500's loss of 2.86% in that time.
Wall Street will be looking for positivity from Home Depot as it approaches its next earnings report date. In that report, analysts expect Home Depot to post earnings of $3.81 per share. This would mark a year-over-year decline of 10.14%. Our most recent consensus estimate is calling for quarterly revenue of $37.74 billion, down 2.92% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $15.24 per share and revenue of $153.08 billion. These totals would mark changes of -8.69% and -1.39%, respectively, from last year.
Investors might also notice recent changes to analyst estimates for Home Depot. 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.
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.
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. Within the past 30 days, our consensus EPS projection has moved 0.08% higher. Home Depot is currently sporting a Zacks Rank of #3 (Hold).
In terms of valuation, Home Depot is currently trading at a Forward P/E ratio of 19.85. For comparison, its industry has an average Forward P/E of 11.23, which means Home Depot is trading at a premium to the group.
It is also worth noting that HD currently has a PEG ratio of 2.09. 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 1.9 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 55, putting it in the top 22% 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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
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