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Home Depot (HD) closed at $359.77 in the latest trading session, marking a +1.69% move from the prior day. The stock outperformed the S&P 500, which registered a daily gain of 0.55%. Elsewhere, the Dow gained 0.62%, while the tech-heavy Nasdaq added 0.63%.

Prior to today's trading, shares of the home-improvement retailer had gained 1.7% over the past month. This has outpaced the Retail-Wholesale sector's gain of 1.33% and lagged the S&P 500's gain of 4.28% in that time.

The investment community will be paying close attention to the earnings performance of Home Depot in its upcoming release. The company is slated to reveal its earnings on August 13, 2024. The company is forecasted to report an EPS of $4.59, showcasing a 1.29% downward movement from the corresponding quarter of the prior year. Meanwhile, our latest consensus estimate is calling for revenue of $42.58 billion, down 0.78% from the prior-year quarter.

For the full year, the Zacks Consensus Estimates project earnings of $15.28 per share and a revenue of $154.16 billion, demonstrating changes of +1.13% and +0.98%, respectively, from the preceding year.

Investors should also pay attention to any latest changes in analyst estimates for Home Depot. These recent revisions tend to reflect the evolving nature of short-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional 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. Within the past 30 days, our consensus EPS projection has moved 0.01% lower. Home Depot currently has a Zacks Rank of #3 (Hold).

With respect to valuation, Home Depot is currently being traded at a Forward P/E ratio of 23.16. This valuation marks a premium compared to its industry's average Forward P/E of 16.58.

One should further note that HD currently holds a PEG ratio of 2.44. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. By the end of yesterday's trading, the Building Products - Retail industry had an average PEG ratio of 2.4.

The Building Products - Retail industry is part of the Retail-Wholesale sector. With its current Zacks Industry Rank of 221, this industry ranks in the bottom 13% of all industries, numbering over 250.

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.

Ensure to harness Zacks.com to stay updated with all these stock-shifting metrics, among others, in the next trading sessions.

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