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Why the Market Dipped But Home Depot (HD) Gained Today

In the latest market close, Home Depot (HD) reached $332.89, with a +0.02% movement compared to the previous day. The stock outpaced the S&P 500's daily loss of 0.22%. On the other hand, the Dow registered a gain of 0.06%, and the technology-centric Nasdaq decreased by 0.52%.

Prior to today's trading, shares of the home-improvement retailer had lost 13.42% over the past month. This has lagged the Retail-Wholesale sector's loss of 2.01% and the S&P 500's loss of 1.66% in that time.

Market participants will be closely following the financial results of Home Depot in its upcoming release. The company plans to announce its earnings on May 14, 2024. The company is forecasted to report an EPS of $3.61, showcasing a 5.5% downward movement from the corresponding quarter of the prior year. Alongside, our most recent consensus estimate is anticipating revenue of $36.69 billion, indicating a 1.53% downward movement from the same quarter last year.

In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $15.37 per share and a revenue of $154.56 billion, indicating changes of +1.72% and +1.24%, respectively, from the former year.

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Investors should also note any recent changes to analyst estimates for Home Depot. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the company's business health and profitability.

Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable rating system.

The Zacks Rank system, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed a 0.1% decrease. As of now, Home Depot holds a Zacks Rank of #3 (Hold).

In the context of valuation, Home Depot is at present trading with a Forward P/E ratio of 21.65. This represents a premium compared to its industry's average Forward P/E of 15.46.

Investors should also note that HD has a PEG ratio of 2.22 right now. 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. Building Products - Retail stocks are, on average, holding a PEG ratio of 1.96 based on yesterday's closing prices.

The Building Products - Retail industry is part of the Retail-Wholesale sector. This group has a Zacks Industry Rank of 169, putting it in the bottom 33% of all 250+ industries.

The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within the groups. 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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The Home Depot, Inc. (HD) : Free Stock Analysis Report

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