In the latest trading session, Home Depot (HD) closed at $323.63, marking a -0.55% move from the previous day. This change lagged the S&P 500's daily gain of 1.49%.
Coming into today, shares of the home-improvement retailer had gained 0.83% in the past month. In that same time, the Retail-Wholesale sector lost 5.6%, while the S&P 500 lost 0.62%.
HD will be looking to display strength as it nears its next earnings release, which is expected to be May 18, 2021. On that day, HD is projected to report earnings of $2.93 per share, which would represent year-over-year growth of 40.87%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $34.1 billion, up 20.65% from the year-ago period.
HD's full-year Zacks Consensus Estimates are calling for earnings of $12.82 per share and revenue of $136.62 billion. These results would represent year-over-year changes of +6.57% and +3.41%, respectively.
It is also important to note the recent changes to analyst estimates for HD. 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.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.
The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 2.03% higher. HD currently has a Zacks Rank of #3 (Hold).
Valuation is also important, so investors should note that HD has a Forward P/E ratio of 25.38 right now. This represents a premium compared to its industry's average Forward P/E of 16.58.
We can also see that HD currently has a PEG ratio of 2.35. 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 1.55 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 59, putting it in the top 24% 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.
To follow HD in the coming trading sessions, be sure to utilize Zacks.com.
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The Home Depot, Inc. (HD) : Free Stock Analysis Report
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