Home Depot (HD) closed at $332.73 in the latest trading session, marking a -2.47% move from the prior day. This move lagged the S&P 500's daily gain of 0.37%. Meanwhile, the Dow experienced a drop of 0.38%, and the technology-dominated Nasdaq saw an increase of 0.83%.
The home-improvement retailer's shares have seen an increase of 21.34% over the last month, surpassing the Retail-Wholesale sector's gain of 6.26% and the S&P 500's loss of 2.29%.
The investment community will be closely monitoring the performance of Home Depot in its forthcoming earnings report. The company is scheduled to release its earnings on November 17, 2026. The company's earnings per share (EPS) are projected to be $3.86, reflecting a 3.21% increase from the same quarter last year. Our most recent consensus estimate is calling for quarterly revenue of $42.69 billion, up 3.25% from the year-ago period.
For the annual period, the Zacks Consensus Estimates anticipate earnings of $15.01 per share and a revenue of $171.4 billion, signifying shifts of +2.18% and +3.14%, respectively, from the last year.
Investors should also pay attention to any latest changes in 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 business outlook.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. 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, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed a 0.06% decrease. Home Depot currently has a Zacks Rank of #3 (Hold).
In the context of valuation, Home Depot is at present trading with a Forward P/E ratio of 22.73. This valuation marks a premium compared to its industry average Forward P/E of 18.13.
It is also worth noting that HD currently has a PEG ratio of 2.43. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. HD's industry had an average PEG ratio of 1.67 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 107, finds itself in the top 44% echelons of all 250+ industries.
The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in the upcoming trading sessions.
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.
Of course, all our elite picks aren't winners, but this one could far surpass earlier Zacks' Stocks Set to Double like D-Wave Quantum, which shot up +680.1%.
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 Report
This article originally published on Zacks Investment Research (zacks.com).