Home Depot (HD) closed the latest trading day at $412.43, indicating a +1.3% change from the previous session's end. The stock exceeded the S&P 500, which registered a gain of 1.04% for the day. Elsewhere, the Dow saw an upswing of 0.77%, while the tech-heavy Nasdaq appreciated by 1.51%.
Shares of the home-improvement retailer have appreciated by 0.26% over the course of the past month, underperforming the Retail-Wholesale sector's gain of 8.48% and the S&P 500's gain of 3.92%.
The upcoming earnings release of Home Depot will be of great interest to investors. The company's earnings report is expected on February 25, 2025. On that day, Home Depot is projected to report earnings of $3.08 per share, which would represent year-over-year growth of 9.22%. Meanwhile, our latest consensus estimate is calling for revenue of $38.95 billion, up 11.98% from the prior-year quarter.
It's also important for investors to be aware of any recent modifications to analyst estimates for Home Depot. These latest adjustments often mirror the shifting dynamics of short-term business patterns. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. 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, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has moved 0.37% lower. Right now, Home Depot possesses a Zacks Rank of #3 (Hold).
Looking at its valuation, Home Depot is holding a Forward P/E ratio of 26.11. This valuation marks a premium compared to its industry's average Forward P/E of 21.14.
Investors should also note that HD has a PEG ratio of 4.16 right now. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. The Retail - Home Furnishings industry currently had an average PEG ratio of 2.06 as of yesterday's close.
The Retail - Home Furnishings industry is part of the Retail-Wholesale sector. This industry, currently bearing a Zacks Industry Rank of 72, finds itself in the top 29% echelons of all 250+ industries.
The Zacks Industry Rank gauges the strength of our 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 use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming trading sessions.
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