Home Depot (HD) Stock Sinks As Market Gains: Here's Why

Home Depot (HD) closed at $410.10 in the latest trading session, marking a -1.99% move from the prior day. This move lagged the S&P 500's daily gain of 0.61%. Elsewhere, the Dow gained 0.3%, while the tech-heavy Nasdaq added 1.28%.Heading into today, shares of the home-improvement retailer had gained 5.63% over the past month, outpacing the Retail-Wholesale sector's gain of 2.32% and the S&P 500's gain of 2.08% in that time.Investors will be eagerly watching for the performance of Home Depot in its upcoming earnings disclosure. The company's earnings report is set to be unveiled on February 25, 2025. The company is predicted to post an EPS of $3.07, indicating an 8.87% growth compared to the equivalent quarter last year. At the same time, our most recent consensus estimate is projecting a revenue of $38.81 billion, reflecting a 11.56% rise from the equivalent quarter last year.HD's full-year Zacks Consensus Estimates are calling for earnings of $15.12 per share and revenue of $158.62 billion. These results would represent year-over-year changes of +0.07% and +3.9%, respectively.Any recent changes to analyst estimates for Home Depot should also be noted by investors. Recent revisions tend to reflect the latest near-term business trends. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the company's business health and profitability.Our research shows that these estimate changes are directly correlated with near-term stock prices. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical rating system.The Zacks Rank system, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. Over the past month, the Zacks Consensus EPS estimate has remained steady. At present, Home Depot boasts a Zacks Rank of #2 (Buy).Looking at its valuation, Home Depot is holding a Forward P/E ratio of 27.68. This indicates a premium in contrast to its industry's Forward P/E of 21.77.We can also see that HD currently has a PEG ratio of 4.41. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. As the market closed yesterday, the Retail - Home Furnishings industry was having an average PEG ratio of 2.22.The Retail - Home Furnishings industry is part of the Retail-Wholesale sector. This industry currently has a Zacks Industry Rank of 72, which puts it in the top 29% of all 250+ industries.The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.You can find more information on all of these metrics, and much more, on Zacks.com.Zacks' Research Chief Names "Stock Most Likely to Double"Our team of experts has just released the 5 stocks with the greatest probability of gaining +100% or more in the coming months. Of those 5, Director of Research Sheraz Mian highlights the one stock set to climb highest.This top pick is among the most innovative financial firms. With a fast-growing customer base (already 50+ million) and a diverse set of cutting edge solutions, this stock is poised for big gains. Of course, all our elite picks aren’t winners but this one could far surpass earlier Zacks’ Stocks Set to Double like Nano-X Imaging which shot up +129.6% in little more than 9 months.Free: See Our Top Stock And 4 Runners UpWant 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