Home Depot (HD) ended the recent trading session at $372.08, demonstrating a -1.39% change from the preceding day's closing price. This change lagged the S&P 500's 0.13% loss on the day. At the same time, the Dow lost 0.39%, and the tech-heavy Nasdaq gained 0.15%.
Coming into today, shares of the home-improvement retailer had gained 1.12% in the past month. In that same time, the Retail-Wholesale sector gained 2.23%, while the S&P 500 gained 3.39%.
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 August 19, 2025. It is anticipated that the company will report an EPS of $4.71, marking a 0.86% rise compared to the same quarter of the previous year. Alongside, our most recent consensus estimate is anticipating revenue of $45.51 billion, indicating a 5.42% upward movement from the same quarter last year.
For the full year, the Zacks Consensus Estimates project earnings of $15.04 per share and a revenue of $164.45 billion, demonstrating changes of -1.31% and +3.09%, respectively, from the preceding 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. Hence, positive alterations in estimates signify analyst optimism regarding the business and profitability.
Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable rating system.
The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 0.04% higher. Home Depot is currently a Zacks Rank #3 (Hold).
Digging into valuation, Home Depot currently has a Forward P/E ratio of 25.09. This denotes a premium relative to the industry average Forward P/E of 20.86.
We can additionally observe that HD currently boasts a PEG ratio of 3.58. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. Retail - Home Furnishings stocks are, on average, holding a PEG ratio of 2.31 based on yesterday's closing prices.
The Retail - Home Furnishings industry is part of the Retail-Wholesale sector. With its current Zacks Industry Rank of 91, this industry ranks in the top 37% 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.
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The Home Depot, Inc. (HD): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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