Home Depot (HD) Exceeds Market Returns: Some Facts to Consider

Company Performance - Home Depot (HD) closed at $353.42, reflecting a +1.1% increase from the previous day, outperforming the S&P 500's gain of 1.08% [1] - Over the past month, Home Depot's shares have decreased by 13.33%, which is worse than the Retail-Wholesale sector's loss of 11.45% and the S&P 500's loss of 8.26% [1] Upcoming Financial Results - Home Depot is expected to report an EPS of$ 3.59, a decrease of 1.1% from the same quarter last year, with anticipated revenue of $39.3 billion, representing a 7.9% increase year-over-year [2] - For the full year, analysts expect earnings of$ 14.98 per share and revenue of $163.8 billion, indicating changes of -1.71% and +2.69% respectively from the previous year [3] Analyst Estimates and Rankings - Recent adjustments to analyst estimates for Home Depot are crucial as they reflect short-term business trends, with positive revisions indicating a favorable business outlook [4] - The Zacks Rank system, which integrates estimate changes, currently ranks Home Depot at 3 (Hold), with a 4% downward shift in the consensus EPS estimate over the past month [6] Valuation Metrics - Home Depot is trading at a Forward P/E ratio of 23.34, which is higher than its industry's Forward P/E of 18.16 [7] - The company has a PEG ratio of 3.31, compared to the Retail - Home Furnishings industry's average PEG ratio of 2.02 [8] Industry Context - The Retail - Home Furnishings industry, part of the Retail-Wholesale sector, has a Zacks Industry Rank of 172, placing it in the bottom 32% of over 250 industries [9]