Advertisement
Australia markets closed
  • ALL ORDS

    8,153.70
    +80.10 (+0.99%)
     
  • ASX 200

    7,896.90
    +77.30 (+0.99%)
     
  • AUD/USD

    0.6520
    -0.0016 (-0.24%)
     
  • OIL

    83.11
    +1.76 (+2.16%)
     
  • GOLD

    2,254.80
    +42.10 (+1.90%)
     
  • Bitcoin AUD

    108,689.62
    +2,601.38 (+2.45%)
     
  • CMC Crypto 200

    885.54
    0.00 (0.00%)
     
  • AUD/EUR

    0.6035
    +0.0004 (+0.07%)
     
  • AUD/NZD

    1.0907
    +0.0027 (+0.25%)
     
  • NZX 50

    12,105.29
    +94.63 (+0.79%)
     
  • NASDAQ

    18,254.69
    -26.15 (-0.14%)
     
  • FTSE

    7,952.62
    +20.64 (+0.26%)
     
  • Dow Jones

    39,807.37
    +47.29 (+0.12%)
     
  • DAX

    18,492.49
    +15.40 (+0.08%)
     
  • Hang Seng

    16,541.42
    +148.58 (+0.91%)
     
  • NIKKEI 225

    40,168.07
    -594.66 (-1.46%)
     

Home Depot (HD) Gains As Market Dips: What You Should Know

Home Depot (HD) closed at $372.32 in the latest trading session, marking a +0.85% move from the prior day. This change outpaced the S&P 500's 0.51% loss on the day.

Heading into today, shares of the home-improvement retailer had gained 10.6% over the past month, outpacing the Retail-Wholesale sector's gain of 0.77% and the S&P 500's gain of 3.08% in that time.

Wall Street will be looking for positivity from HD as it approaches its next earnings report date. This is expected to be November 16, 2021. In that report, analysts expect HD to post earnings of $3.32 per share. This would mark year-over-year growth of 4.4%. Our most recent consensus estimate is calling for quarterly revenue of $34.46 billion, up 2.77% from the year-ago period.

HD's full-year Zacks Consensus Estimates are calling for earnings of $14.50 per share and revenue of $145.45 billion. These results would represent year-over-year changes of +20.53% and +10.1%, respectively.

ADVERTISEMENT

Any recent changes to analyst estimates for HD should also be noted by investors. Recent revisions tend to reflect the latest 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. The Zacks Consensus EPS estimate has moved 0.34% higher within the past month. HD is holding a Zacks Rank of #2 (Buy) right now.

Digging into valuation, HD currently has a Forward P/E ratio of 25.46. This represents a premium compared to its industry's average Forward P/E of 17.63.

Also, we should mention that HD has a PEG ratio of 2.62. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. HD's industry had an average PEG ratio of 2.03 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 11, which puts it in the top 5% 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.


Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
 
The Home Depot, Inc. (HD) : Free Stock Analysis Report
 
To read this article on Zacks.com click here.