The latest trading session saw Home Depot (HD) ending at $359, denoting a +0.58% adjustment from its last day's close. The stock performed in line with S&P 500. Elsewhere, the Dow saw an upswing of 0.75%, while the tech-heavy Nasdaq appreciated by 0.55%.
The home-improvement retailer's shares have seen a decrease of 2.61% over the last month, not keeping up with the Retail-Wholesale sector's loss of 0.19% and the S&P 500's loss of 0.84%.
Analysts and investors alike will be keeping a close eye on the performance of Home Depot in its upcoming earnings disclosure. The company's earnings report is set to go public 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. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $39.3 billion, up 7.9% from the year-ago period.
Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $14.98 per share and revenue of $163.8 billion. These totals would mark changes of -1.71% and +2.69%, respectively, from last year.
Any recent changes to analyst estimates for Home Depot should also be noted by investors. Recent revisions tend to reflect the latest near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional 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. Over the past month, the Zacks Consensus EPS estimate has moved 0.06% higher. Home Depot currently has a Zacks Rank of #3 (Hold).
Valuation is also important, so investors should note that Home Depot has a Forward P/E ratio of 23.82 right now. This signifies a premium in comparison to the average Forward P/E of 18.06 for its industry.
Investors should also note that HD has a PEG ratio of 3.38 right now. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. The Retail - Home Furnishings was holding an average PEG ratio of 2.24 at yesterday's closing price.
The Retail - Home Furnishings industry is part of the Retail-Wholesale sector. This group has a Zacks Industry Rank of 200, putting it in the bottom 20% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual 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.
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 ReportThis article originally published on Zacks Investment Research (zacks.com).
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