In the latest trading session, Home Depot (HD) closed at $356.42, marking a +0.56% move from the previous day. The stock trailed the S&P 500, which registered a daily gain of 1.67%. Elsewhere, the Dow gained 1.07%, while the tech-heavy Nasdaq added 2.5%.
Prior to today's trading, shares of the home-improvement retailer had lost 1.82% over the past month. This has was narrower than the Retail-Wholesale sector's loss of 4.21% and the S&P 500's loss of 6.57% in that time.
The investment community will be paying close attention to the earnings performance of Home Depot in its upcoming release. The company is slated to reveal its earnings on May 20, 2025. The company's upcoming EPS is projected at $3.59, signifying a 1.1% drop compared to the same quarter of the previous year. In the meantime, our current consensus estimate forecasts the revenue to be $39.3 billion, indicating a 7.9% growth compared to the corresponding quarter of the prior year.
Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $14.98 per share and revenue of $163.8 billion, indicating changes of -1.71% and +2.69%, respectively, compared to the previous year.
Investors should also pay attention to any latest changes in analyst estimates for Home Depot. These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the company's business health and profitability.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. 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, 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. The Zacks Consensus EPS estimate remained stagnant within the past month. Right now, Home Depot possesses a Zacks Rank of #3 (Hold).
In terms of valuation, Home Depot is currently trading at a Forward P/E ratio of 23.67. This indicates a premium in contrast to its industry's Forward P/E of 17.89.
We can also see that HD currently has a PEG ratio of 3.35. 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. As of the close of trade yesterday, the Retail - Home Furnishings industry held an average PEG ratio of 2.16.
The Retail - Home Furnishings industry is part of the Retail-Wholesale sector. This group has a Zacks Industry Rank of 197, putting it in the bottom 21% of all 250+ industries.
The Zacks Industry Rank is ordered 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.
You can find more information on all of these metrics, and much more, on Zacks.com.
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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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