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Home Depot (HD) Stock Sinks As Market Gains: Here's Why
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Home Depot (HD - Free Report) closed at $410.10 in the latest trading session, marking a -1.99% move from the prior day. This move lagged the S&P 500's daily gain of 0.61%. Elsewhere, the Dow gained 0.3%, while the tech-heavy Nasdaq added 1.28%.
Heading into today, shares of the home-improvement retailer had gained 5.63% over the past month, outpacing the Retail-Wholesale sector's gain of 2.32% and the S&P 500's gain of 2.08% in that time.
Investors will be eagerly watching for the performance of Home Depot in its upcoming earnings disclosure. The company's earnings report is set to be unveiled on February 25, 2025. The company is predicted to post an EPS of $3.07, indicating an 8.87% growth compared to the equivalent quarter last year. At the same time, our most recent consensus estimate is projecting a revenue of $38.81 billion, reflecting a 11.56% rise from the equivalent quarter last year.
HD's full-year Zacks Consensus Estimates are calling for earnings of $15.12 per share and revenue of $158.62 billion. These results would represent year-over-year changes of +0.07% and +3.9%, respectively.
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 shows that these estimate changes are directly correlated with near-term stock prices. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical 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. Over the past month, the Zacks Consensus EPS estimate has remained steady. At present, Home Depot boasts a Zacks Rank of #2 (Buy).
Looking at its valuation, Home Depot is holding a Forward P/E ratio of 27.68. This indicates a premium in contrast to its industry's Forward P/E of 21.77.
We can also see that HD currently has a PEG ratio of 4.41. 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 2.22.
The Retail - Home Furnishings industry is part of the Retail-Wholesale sector. This industry currently has a Zacks Industry Rank of 72, which puts it in the top 29% of all 250+ industries.
The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within the groups. 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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Home Depot (HD) Stock Sinks As Market Gains: Here's Why
Home Depot (HD - Free Report) closed at $410.10 in the latest trading session, marking a -1.99% move from the prior day. This move lagged the S&P 500's daily gain of 0.61%. Elsewhere, the Dow gained 0.3%, while the tech-heavy Nasdaq added 1.28%.
Heading into today, shares of the home-improvement retailer had gained 5.63% over the past month, outpacing the Retail-Wholesale sector's gain of 2.32% and the S&P 500's gain of 2.08% in that time.
Investors will be eagerly watching for the performance of Home Depot in its upcoming earnings disclosure. The company's earnings report is set to be unveiled on February 25, 2025. The company is predicted to post an EPS of $3.07, indicating an 8.87% growth compared to the equivalent quarter last year. At the same time, our most recent consensus estimate is projecting a revenue of $38.81 billion, reflecting a 11.56% rise from the equivalent quarter last year.
HD's full-year Zacks Consensus Estimates are calling for earnings of $15.12 per share and revenue of $158.62 billion. These results would represent year-over-year changes of +0.07% and +3.9%, respectively.
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 shows that these estimate changes are directly correlated with near-term stock prices. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical 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. Over the past month, the Zacks Consensus EPS estimate has remained steady. At present, Home Depot boasts a Zacks Rank of #2 (Buy).
Looking at its valuation, Home Depot is holding a Forward P/E ratio of 27.68. This indicates a premium in contrast to its industry's Forward P/E of 21.77.
We can also see that HD currently has a PEG ratio of 4.41. 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 2.22.
The Retail - Home Furnishings industry is part of the Retail-Wholesale sector. This industry currently has a Zacks Industry Rank of 72, which puts it in the top 29% of all 250+ industries.
The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within the groups. 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.