In the latest trading session, Home Depot (HD) closed at $384.64, marking a +2.54% move from the previous day. This move outpaced the S&P 500's daily gain of 1.16%. At the same time, the Dow added 1.21%, and the tech-heavy Nasdaq gained 1.18%.
The home-improvement retailer's stock has climbed by 8.74% in the past month, exceeding the Retail-Wholesale sector's gain of 3.08% and the S&P 500's loss of 0.42%.
Market participants will be closely following the financial results of Home Depot in its upcoming release. The company's upcoming EPS is projected at $2.53, signifying a 19.17% drop compared to the same quarter of the previous year. Alongside, our most recent consensus estimate is anticipating revenue of $38.18 billion, indicating a 3.85% downward movement from the same quarter last year.
HD's full-year Zacks Consensus Estimates are calling for earnings of $14.51 per share and revenue of $164.65 billion. These results would represent year-over-year changes of -4.79% and +3.22%, respectively.
It's also important for investors to be aware of any recent modifications to analyst estimates for Home Depot. These recent revisions tend to reflect the evolving nature of short-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational rating system.
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. The Zacks Consensus EPS estimate has moved 0.01% lower within the past month. Right now, Home Depot possesses a Zacks Rank of #4 (Sell).
Investors should also note Home Depot's current valuation metrics, including its Forward P/E ratio of 25.85. Its industry sports an average Forward P/E of 23.68, so one might conclude that Home Depot is trading at a premium comparatively.
We can additionally observe that HD currently boasts a PEG ratio of 13.98. 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. The Retail - Home Furnishings industry currently had an average PEG ratio of 2.15 as of yesterday's close.
The Retail - Home Furnishings industry is part of the Retail-Wholesale sector. This group has a Zacks Industry Rank of 185, putting it in the bottom 25% 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.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.
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The Home Depot, Inc. (HD): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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