Home Depot (HD) closed the most recent trading day at $262.42, moving +0.86% from the previous trading session. This move outpaced the S&P 500’s daily gain of 0.17%. Meanwhile, the Dow gained 0.6%, and the Nasdaq, a tech-heavy index, lost 0.81%.
Heading into today, shares of the home-improvement retailer had gained 4.42% over the past month, lagging the Retail-Wholesale sector’s gain of 11.13% and the S&P 500’s gain of 5.15% in that time.
HD will be looking to display strength as it nears its next earnings release, which is expected to be August 18, 2020. The company is expected to report EPS of $3.20, up 0.95% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $32.86 billion, up 6.57% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $9.95 per share and revenue of $115.86 billion. These totals would mark changes of -2.93% and +5.11%, respectively, from last year.
Investors might also notice recent changes to analyst estimates for HD. These revisions help to show the ever-changing nature of near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company’s business outlook.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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 moved 0.38% higher. HD currently has a Zacks Rank of #2 (Buy).
In terms of valuation, HD is currently trading at a Forward P/E ratio of 26.15. This valuation marks a premium compared to its industry’s average Forward P/E of 19.02.
We can also see that HD currently has a PEG ratio of 2.29. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock’s expected earnings growth rate. The Building Products – Retail industry currently had an average PEG ratio of 2.14 as of yesterday’s close.
The Building Products – Retail industry is part of the Retail-Wholesale sector. This industry currently has a Zacks Industry Rank of 49, which puts it in the top 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.
Make sure to utilize Zacks. Com to follow all of these stock-moving metrics, and more, in the coming trading sessions.
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The Home Depot, Inc. (HD) : Free Stock Analysis Report
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