Home Depot (NYSE:HD) closed the most recent trading day at $176.47, moving -1.31% from the previous trading session. This change lagged the S&P 500's daily gain of 1.07%. Elsewhere, the Dow gained 0.65%, while the tech-heavy Nasdaq added 1.71%.
Coming into today, shares of the home-improvement retailer had gained 6.45% in the past month. In that same time, the Retail-Wholesale sector gained 0.66%, while the S&P 500 lost 0.58%.
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%. Meanwhile, our latest consensus estimate is calling for revenue of $26.60 billion, up 11.37% from the prior-year quarter.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $9.81 per share and revenue of $108.26 billion. These totals would mark changes of +31.5% and +7.29%, respectively, from last year.
Investors might also notice recent changes to analyst estimates for HD. 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.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 0.01% higher. HD is currently a Zacks Rank #3 (Hold).
Valuation is also important, so investors should note that HD has a Forward P/E ratio of 18.23 right now. This valuation marks a premium compared to its industry's average Forward P/E of 11.13.
Meanwhile, HD's PEG ratio is currently 1.41. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. Building Products - Retail stocks are, on average, holding a PEG ratio of 1.08 based on yesterday's closing prices.
The Building Products - Retail industry is part of the Retail-Wholesale sector. This group has a Zacks Industry Rank of 226, putting it in the bottom 12% of all 250+ industries.
The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. 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.
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