Yahoo Finance Home Depot (HD) Stock Declines While Market Improves: Some Information for Investors
In the latest trading session, Home Depot (HD) closed at $333.01, marking a -1.77% move from the previous day. The stock trailed the S&P 500, which registered a daily gain of 0.02%. Meanwhile, the Dow lost 0.11%, and the Nasdaq, a tech-heavy index, added 0.1%.
Shares of the home-improvement retailer have depreciated by 10.77% over the course of the past month, underperforming the Retail-Wholesale sector's loss of 2.56% and the S&P 500's loss of 3.01%.
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 May 14, 2024. On that day, Home Depot is projected to report earnings of $3.61 per share, which would represent a year-over-year decline of 5.5%. Simultaneously, our latest consensus estimate expects the revenue to be $36.69 billion, showing a 1.53% drop compared to the year-ago quarter.
For the full year, the Zacks Consensus Estimates project earnings of $15.37 per share and a revenue of $154.56 billion, demonstrating changes of +1.72% and +1.24%, respectively, from the preceding year.
It's also important for investors to be aware of any recent modifications to analyst estimates for Home Depot. 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 suggests that these changes in estimates have a direct relationship with upcoming stock price performance. 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, 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. The Zacks Consensus EPS estimate has moved 0.1% lower within the past month. Currently, Home Depot is carrying a Zacks Rank of #4 (Sell).
Looking at valuation, Home Depot is presently trading at a Forward P/E ratio of 22.05. This valuation marks a premium compared to its industry's average Forward P/E of 14.77.
We can also see that HD currently has a PEG ratio of 2.26. 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 had an average PEG ratio of 2 as trading concluded yesterday.
The Building Products - Retail industry is part of the Retail-Wholesale sector. This group has a Zacks Industry Rank of 193, putting it in the bottom 24% 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.
Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming trading sessions.
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The Home Depot, Inc. (HD) : Free Stock Analysis Report
