Home Depot (HD) Outpaces Stock Market Gains: What You Should Know

Home Depot (HD) closed the most recent trading day at $402.89, moving +1% from the previous trading session. The stock outperformed the S&P 500, which registered a daily gain of 0.27%. On the other hand, the Dow registered a gain of 0.65%, and the technology-centric Nasdaq increased by 0.26%.Coming into today, shares of the home-improvement retailer had lost 0.16% in the past month. In that same time, the Retail-Wholesale sector lost 0.61%, while the S&P 500 gained 2%.Market participants will be closely following the financial results of Home Depot in its upcoming release. The company's earnings per share (EPS) are projected to be $3.64, reflecting a 4.46% decrease from the same quarter last year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $39.23 billion, up 4.04% from the year-ago period.Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $15.01 per share and revenue of $157.51 billion. These totals would mark changes of -0.66% and +3.17%, respectively, from last year.Investors might also notice recent changes to analyst estimates for Home Depot. Such recent modifications usually signify the changing landscape of near-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the company's business and profitability.Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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.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, there's been a 0.04% rise in the Zacks Consensus EPS estimate. As of now, Home Depot holds a Zacks Rank of #2 (Buy).From a valuation perspective, Home Depot is currently exchanging hands at a Forward P/E ratio of 26.58. This expresses a premium compared to the average Forward P/E of 20.18 of its industry.One should further note that HD currently holds a PEG ratio of 2.76. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. As of the close of trade yesterday, the Building Products - Retail industry held an average PEG ratio of 3.6.The Building Products - Retail industry is part of the Retail-Wholesale sector. At present, this industry carries a Zacks Industry Rank of 165, placing it within the bottom 35% of over 250 industries.The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming 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.Only $1 to See All Zacks' Buys and SellsWe're not kidding.Several years ago, we shocked our members by offering them 30-day access to all our picks for the total sum of only $1. No obligation to spend another cent.Thousands have taken advantage of this opportunity. Thousands did not - they thought there must be a catch. Yes, we do have a reason. We want you to get acquainted with our portfolio services like Surprise Trader, Stocks Under $10, Technology Innovators,and more, that closed 228 positions with double- and triple-digit gains in 2023 alone.See Stocks 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 ReportTo read this article on Zacks.com click here.Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks