Home Depot (HD) Gains As Market Dips: What You Should Know
Home Depot (HD) closed the most recent trading day at $292.19, moving +0.01% from the previous trading session. This move outpaced the S&P 500's daily loss of 0.21%. Elsewhere, the Dow lost 0.42%, while the tech-heavy Nasdaq lost 0.64%.
Prior to today's trading, shares of the home-improvement retailer had gained 1.89% over the past month. This has lagged the Retail-Wholesale sector's gain of 6.29% and the S&P 500's gain of 7.71% in that time.
Wall Street will be looking for positivity from Home Depot as it approaches its next earnings report date. This is expected to be May 16, 2023. In that report, analysts expect Home Depot to post earnings of $3.86 per share. This would mark a year-over-year decline of 5.62%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $38.73 billion, down 0.47% from the year-ago period.
HD's full-year Zacks Consensus Estimates are calling for earnings of $15.85 per share and revenue of $157.23 billion. These results would represent year-over-year changes of -5.03% and -0.11%, respectively.
Any recent changes to analyst estimates for Home Depot should also be noted by investors. These revisions help to show the ever-changing nature of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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 remained stagnant. Home Depot is currently sporting a Zacks Rank of #4 (Sell).
Digging into valuation, Home Depot currently has a Forward P/E ratio of 18.43. For comparison, its industry has an average Forward P/E of 13.36, which means Home Depot is trading at a premium to the group.
Meanwhile, HD's PEG ratio is currently 1.69. 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 currently had an average PEG ratio of 1.69 as of yesterday's close.
The Building Products - Retail industry is part of the Retail-Wholesale sector. This group has a Zacks Industry Rank of 24, putting it in the top 10% 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 Report
