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Home Depot (HD) closed at $360.99 in the latest trading session, marking a -0.76% move from the prior day. The stock's performance was behind the S&P 500's daily gain of 0.16%. Elsewhere, the Dow gained 0.01%, while the tech-heavy Nasdaq added 0.46%.
The the stock of home-improvement retailer has fallen by 4.88% in the past month, leading the Retail-Wholesale sector's loss of 5.51% and undershooting the S&P 500's loss of 3.59%.
Market participants will be closely following the financial results of Home Depot in its upcoming release. In that report, analysts expect Home Depot to post earnings of $3.59 per share. This would mark a year-over-year decline of 1.1%. Meanwhile, our latest consensus estimate is calling for revenue of $39.3 billion, up 7.9% from the prior-year quarter.
In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $14.98 per share and a revenue of $163.8 billion, indicating changes of -1.71% and +2.69%, respectively, from the former year.
Investors might also notice recent changes 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. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
The Zacks Rank system, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has shifted 4.09% downward. At present, Home Depot boasts a Zacks Rank of #3 (Hold).
Investors should also note Home Depot's current valuation metrics, including its Forward P/E ratio of 24.29. This valuation marks a premium compared to its industry's average Forward P/E of 18.47.
Also, we should mention that HD has a PEG ratio of 3.44. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. The Retail - Home Furnishings industry had an average PEG ratio of 2.07 as trading concluded yesterday.
The Retail - Home Furnishings industry is part of the Retail-Wholesale sector. This group has a Zacks Industry Rank of 145, putting it in the bottom 43% of all 250+ industries.