Home Depot (HD) Exceeds Market Returns: Some Facts to Consider

In the latest trading session, Home Depot (HD) closed at $353.42, marking a +1.1% move from the previous day. This move outpaced the S&P 500's daily gain of 1.08%. Meanwhile, the Dow gained 0.92%, and the Nasdaq, a tech-heavy index, added 1.41%.Heading into today, shares of the home-improvement retailer had lost 13.33% over the past month, lagging the Retail-Wholesale sector's loss of 11.45% and the S&P 500's loss of 8.26% in that time.Market participants will be closely following the financial results of Home Depot in its upcoming release. The company is expected to report EPS of $3.59, down 1.1% from the prior-year quarter. Alongside, our most recent consensus estimate is anticipating revenue of $39.3 billion, indicating a 7.9% upward movement from the same quarter last year.Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $14.98 per share and revenue of $163.8 billion. These totals would mark changes of -1.71% and +2.69%, respectively, from last year.Investors should also take note of any recent adjustments to analyst estimates for Home Depot. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.Our research shows that these estimate changes are directly correlated with near-term stock prices. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.The Zacks Rank system, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has shifted 4% downward. Home Depot currently has a Zacks Rank of #3 (Hold).Looking at valuation, Home Depot is presently trading at a Forward P/E ratio of 23.34. This indicates a premium in contrast to its industry's Forward P/E of 18.16.It's also important to note that HD currently trades at a PEG ratio of 3.31. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. By the end of yesterday's trading, the Retail - Home Furnishings industry had an average PEG ratio of 2.02.The Retail - Home Furnishings industry is part of the Retail-Wholesale sector. At present, this industry carries a Zacks Industry Rank of 172, placing it within the bottom 32% of over 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.Ensure to harness Zacks.com to stay updated with all these stock-shifting metrics, among others, in the next trading sessions.7 Best Stocks for the Next 30 DaysJust released: Experts distill 7 elite stocks from the current list of 220 Zacks Rank #1 Strong Buys. They deem these tickers "Most Likely for Early Price Pops."Since 1988, the full list has beaten the market more than 2X over with an average gain of +24.3% per year. So be sure to give these hand picked 7 your immediate attention. See them now >>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 ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks