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Home Depot (HD) Stock Moves -0.12%: What You Should Know

Zacks.com logo Zacks.com 4/14/2021

In the latest trading session, Home Depot (HD) closed at $320.02, marking a -0.12% move from the previous day. This change was narrower than the S&P 500's daily loss of 0.41%.

Prior to today's trading, shares of the home-improvement retailer had gained 13.59% over the past month. This has outpaced the Retail-Wholesale sector's gain of 1.33% and the S&P 500's gain of 5.07% in that time.

Investors will be hoping for strength from HD as it approaches its next earnings release, which is expected to be May 18, 2021. On that day, HD is projected to report earnings of $2.84 per share, which would represent year-over-year growth of 36.54%. Our most recent consensus estimate is calling for quarterly revenue of $33.38 billion, up 18.12% from the year-ago period.

HD's full-year Zacks Consensus Estimates are calling for earnings of $12.57 per share and revenue of $134.83 billion. These results would represent year-over-year changes of +4.49% and +2.06%, respectively.

Any recent changes to analyst estimates for HD should also be noted by investors. These recent revisions tend to reflect the evolving nature of short-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Our research shows that these estimate changes are directly correlated with near-term stock prices. 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.

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 0.14% higher. HD is holding a Zacks Rank of #3 (Hold) right now.

Digging into valuation, HD currently has a Forward P/E ratio of 25.49. For comparison, its industry has an average Forward P/E of 17.63, which means HD is trading at a premium to the group.

We can also see that HD currently has a PEG ratio of 2.44. 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 1.64 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 97, putting it in the top 39% 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.

Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.

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