Home Depot (HD) Dips More Than Broader Markets: What You Should Know

Home Depot (HD) closed at $359.69 in the latest trading session, marking a -1.92% move from the prior day. This move lagged the S&P 500's daily loss of 0.97%. Meanwhile, the Dow lost 0.96%, and the Nasdaq, a tech-heavy index, added 0.23%.

Heading into today, shares of the home-improvement retailer had lost 6.08% over the past month, lagging the Retail-Wholesale sector's loss of 5.18% and the S&P 500's loss of 0.78% 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 February 22, 2022. In that report, analysts expect Home Depot to post earnings of $3.20 per share. This would mark year-over-year growth of 16.79%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $34.61 billion, up 7.27% from the year-ago period.

HD's full-year Zacks Consensus Estimates are calling for earnings of $15.47 per share and revenue of $150.01 billion. These results would represent year-over-year changes of +28.6% and +13.55%, respectively.

Investors might also notice recent changes to analyst estimates for Home Depot. These recent revisions tend to reflect the evolving nature of short-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

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.

Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. The Zacks Consensus EPS estimate has moved 0.12% lower within the past month. Home Depot is currently a Zacks Rank #3 (Hold).

Digging into valuation, Home Depot currently has a Forward P/E ratio of 23.71. This valuation marks a premium compared to its industry's average Forward P/E of 11.78.

We can also see that HD currently has a PEG ratio of 1.94. 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 was holding an average PEG ratio of 1.7 at yesterday's closing price.

The Building Products - Retail industry is part of the Retail-Wholesale sector. This industry currently has a Zacks Industry Rank of 22, which puts it in the top 9% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our 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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