Home Depot (HD) Stock Sinks As Market Gains: What You Should Know

Home Depot (HD) ended the recent trading session at $311.40, demonstrating a -1.91% change from the preceding day's closing price. This change lagged the S&P 500's 0.19% gain on the day. Meanwhile, the Dow gained 0.19%, and the Nasdaq, a tech-heavy index, added 0.1%. The home-improvement retailer's stock has dropped by 5.9% in the past month, falling short of the Retail-Wholesale sector's gain of 6.53% and the S&P 500's gain of 9.13%.Market participants will be closely following the financial results of Home Depot in its upcoming release. The company plans to announce its earnings on May 19, 2026. The company's earnings per share (EPS) are projected to be $3.42, reflecting a 3.93% decrease from the same quarter last year. In the meantime, our current consensus estimate forecasts the revenue to be $41.53 billion, indicating a 4.2% growth compared to the corresponding quarter of the prior year. For the full year, the Zacks Consensus Estimates project earnings of $15.03 per share and a revenue of $171.13 billion, demonstrating changes of +2.31% and +3.92%, respectively, from the preceding year. Investors should also note any recent changes to analyst estimates for Home Depot. These revisions typically reflect the latest short-term business trends, which can change frequently. Hence, positive alterations in estimates signify analyst optimism regarding the business and profitability. Empirical research indicates that these revisions in estimates have a direct correlation with impending 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, 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 past month, there's been a 0.01% fall in the Zacks Consensus EPS estimate. Currently, Home Depot is carrying a Zacks Rank of #3 (Hold). Valuation is also important, so investors should note that Home Depot has a Forward P/E ratio of 21.13 right now. This indicates a premium in contrast to its industry's Forward P/E of 20.33. Investors should also note that HD has a PEG ratio of 3.66 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 had an average PEG ratio of 1.77 as trading concluded yesterday. The Retail - Home Furnishings industry is part of the Retail-Wholesale sector. This industry, currently bearing a Zacks Industry Rank of 195, finds itself in the bottom 21% echelons 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. Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming trading sessions. Beyond Nvidia: AI's Second Wave Is HereThe AI revolution has already minted millionaires. But the stocks everyone knows about aren't likely to keep delivering the biggest profits. AI’s second wave is moving from infrastructure to implementation and these companies are at the forefront of this transition, positioned to become what Amazon and Google were to the internet era.See Stocks Now >>This article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks