Home Depot (HD) finished at $331.98, down 0.31% from the previous day. This change was smaller than the S&P 500's 0.46% daily loss. Meanwhile, the Dow fell 0.98% and the tech-heavy Nasdaq 0.64%. The home-improvement retailer's stock fell 13.7% last month, trailing the Retail-Wholesale sector's 3.05% and the S&P 500's 3.04%.
Analysts and investors will watch Home Depot's earnings report. The company's earnings report will be released on May 14, 2024. EPS is expected to drop 5.5% to $3.61 from the same period last year. Our latest consensus estimate is $36.69 billion in revenue, down 1.53% from the year-ago quarter.
The Zacks Consensus Estimates predict $15.37 per share and $154.56 billion in sales for the full year. These totals would increase by 1.72% and 1.24% over previous year.
Investors might also consider recently changed Home Depot analyst estimates. Recent adjustments reflect near-term business dynamics. Thus, upward estimate revisions indicate analysts' optimism about the company's business operations and profitability.
Our study shows that these estimate changes directly affect stock price performance in the near future. Our quantitative Zacks Rank rating system uses these estimate revisions to capitalize on this.
The independently audited Zacks Rank methodology, from #1 (Strong Buy) to #5 (Strong Sell), has produced an impressive average yearly return of +25% since 1988. The Zacks Consensus EPS estimate fell 0.1% last month.
Home Depot has a Forward P/E ratio of 21.66, which investors should consider. This valuation exceeds the industry average Forward P/E of 14.76. Note that HD's PEG ratio is 2.22. The PEG ratio, like the P/E ratio, considers the company's predicted profits growth. Yesterday's closing PEG ratio for Building Products-Retail was 1.96.
Building Products-Retail is part of Retail-Wholesale. The Zacks Industry Rank of 213 places this industry in the lowest 16% of 250+ industries. Using the average Zacks Rank of the stocks in our industry categories, the Zacks Industry Rank measures their strength. Our analysis shows that the top 50% of ranked industries outperform the bottom half 2 to 1.