The most recent trading session ended with Home Depot (HD) standing at $387.20, reflecting a +0.77% shift from the previouse trading day's closing. The stock outpaced the S&P 500's daily gain of 0.16%. At the same time, the Dow added 0.25%, and the tech-heavy Nasdaq lost 0.06%.

The home-improvement retailer's stock has dropped by 8.11% in the past month, falling short of the Retail-Wholesale sector's loss of 4.61% and the S&P 500's loss of 2.7%.

The upcoming earnings release of Home Depot will be of great interest to investors. The company is predicted to post an EPS of $3.01, indicating a 6.74% growth compared to the equivalent quarter last year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $38.81 billion, up 11.56% from the year-ago period.

Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $15.12 per share and revenue of $158.62 billion. These totals would mark changes of +0.07% and +3.9%, respectively, from last year.

It is also important to note the recent changes to analyst estimates for Home Depot. These recent revisions tend to reflect the evolving nature of short-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational rating system.

The Zacks Rank system, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed an unchanged state. As of now, Home Depot holds a Zacks Rank of #3 (Hold).

In the context of valuation, Home Depot is at present trading with a Forward P/E ratio of 25.61. This denotes a premium relative to the industry's average Forward P/E of 20.01.

Meanwhile, HD's PEG ratio is currently 4.08. 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 2.07 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 149, finds itself in the bottom 41% echelons of all 250+ industries.