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Home Depot (HD) Advances While Market Declines: Some Information for Investors

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The most recent trading session ended with Home Depot (HD - Free Report) standing at $415.58, reflecting a +0.04% shift from the previouse trading day's closing. The stock exceeded the S&P 500, which registered a loss of 0.76% for the day. At the same time, the Dow lost 0.75%, and the tech-heavy Nasdaq lost 1.01%.

Heading into today, shares of the home-improvement retailer had gained 8.75% over the past month, outpacing the Retail-Wholesale sector's gain of 3.42% and the S&P 500's gain of 4.31% in that time.

Market participants will be closely following the financial results of Home Depot in its upcoming release. The company's earnings per share (EPS) are projected to be $3.64, reflecting a 4.46% decrease from the same quarter last year. Meanwhile, the latest consensus estimate predicts the revenue to be $39.23 billion, indicating a 4.04% increase compared to the same quarter of the previous year.

For the annual period, the Zacks Consensus Estimates anticipate earnings of $15 per share and a revenue of $157.47 billion, signifying shifts of -0.73% and +3.14%, respectively, from the last year.

Investors might also notice recent changes to analyst estimates for Home Depot. These latest adjustments often mirror the shifting dynamics of short-term business patterns. Therefore, positive revisions in estimates convey analysts' confidence in the company's business performance and profit potential.

Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.

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 moved 0.01% higher. Right now, Home Depot possesses a Zacks Rank of #3 (Hold).

Valuation is also important, so investors should note that Home Depot has a Forward P/E ratio of 27.69 right now. This indicates a premium in contrast to its industry's Forward P/E of 21.97.

Meanwhile, HD's PEG ratio is currently 2.88. 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. The Building Products - Retail industry had an average PEG ratio of 3.69 as trading concluded yesterday.

The Building Products - Retail industry is part of the Retail-Wholesale sector. With its current Zacks Industry Rank of 226, this industry ranks in the bottom 11% of all industries, numbering over 250.

The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

To follow HD in the coming trading sessions, be sure to utilize Zacks.com.


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