Home Depot (HD) closed at $373.60 in the latest trading session, marking a -0.79% move from the prior day. This change lagged the S&P 500's 0.73% gain on the day. Meanwhile, the Dow experienced a drop of 0.64%, and the technology-dominated Nasdaq saw an increase of 1.61%.
Coming into today, shares of the home-improvement retailer had gained 5.43% in the past month. In that same time, the Retail-Wholesale sector gained 9.91%, while the S&P 500 gained 9.07%.
The investment community will be closely monitoring the performance of Home Depot in its forthcoming earnings report. The company is scheduled to release its earnings on May 20, 2025. The company is predicted to post an EPS of $3.59, indicating a 1.1% decline compared to the equivalent quarter last year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $39.33 billion, up 8.01% from the year-ago period.
Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $15 per share and revenue of $163.75 billion, indicating changes of -1.57% and +2.66%, respectively, compared to the previous 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, 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. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
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. Over the past month, the Zacks Consensus EPS estimate has shifted 0.19% upward. Right now, Home Depot possesses a Zacks Rank of #3 (Hold).
Looking at valuation, Home Depot is presently trading at a Forward P/E ratio of 25.1. For comparison, its industry has an average Forward P/E of 20.47, which means Home Depot is trading at a premium to the group.
It's also important to note that HD currently trades at a PEG ratio of 3.56. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. As the market closed yesterday, the Retail - Home Furnishings industry was having an average PEG ratio of 2.43.
The Retail - Home Furnishings industry is part of the Retail-Wholesale sector. Currently, this industry holds a Zacks Industry Rank of 212, positioning it in the bottom 15% 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 use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming 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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