In the latest trading session, Home Depot (HD) closed at $173.59, marking a -1.94% move from the previous day. This change lagged the S&P 500's 1.66% loss on the day. At the same time, the Dow lost 1.56%, and the tech-heavy Nasdaq lost 3.03%.
Heading into today, shares of the home-improvement retailer had lost 1.9% over the past month, outpacing the Retail-Wholesale sector's loss of 2.97% and the S&P 500's loss of 2.43% 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 February 19, 2019. In that report, analysts expect HD to post earnings of $2.17 per share. This would mark year-over-year growth of 28.4%. Our most recent consensus estimate is calling for quarterly revenue of $26.61 billion, up 11.42% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $9.76 per share and revenue of $108.28 billion. These totals would mark changes of +30.83% and +7.31%, respectively, from last year.
Investors should also note any recent changes to analyst estimates for HD. 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.
Our research shows that these estimate changes are directly correlated with near-term stock prices. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, 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. Over the past month, the Zacks Consensus EPS estimate has moved 2.07% higher. HD is holding a Zacks Rank of #3 (Hold) right now.
Investors should also note HD's current valuation metrics, including its Forward P/E ratio of 18.14. This valuation marks a premium compared to its industry's average Forward P/E of 11.43.
Investors should also note that HD has a PEG ratio of 1.37 right now. 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. The Building Products - Retail was holding an average PEG ratio of 1.26 at yesterday's closing price.
The Building Products - Retail industry is part of the Retail-Wholesale sector. This group has a Zacks Industry Rank of 108, putting it in the top 42% 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.