In the latest trading session, Home Depot (HD) closed at $385.41, marking a +1.21% move from the previous day. The stock outperformed the S&P 500, which registered a daily loss of 0.49%. Meanwhile, the Dow experienced a drop of 0.14%, and the technology-dominated Nasdaq saw a decrease of 0.65%.
Shares of the home-improvement retailer have appreciated by 3.59% over the course of the past month, outperforming the Retail-Wholesale sector's loss of 1.34%, and the S&P 500's gain of 0.96%.
Investors will be eagerly watching for the performance of Home Depot in its upcoming earnings disclosure. The company's earnings report is set to be unveiled on August 19, 2025. On that day, Home Depot is projected to report earnings of $4.71 per share, which would represent year-over-year growth of 0.86%. 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.
Investors might also notice recent changes to analyst estimates for Home Depot. These revisions help to show the ever-changing nature of near-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the business and profitability.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 0.04% higher. Home Depot is currently sporting a Zacks Rank of #3 (Hold).
In the context of valuation, Home Depot is at present trading with a Forward P/E ratio of 25.33. This indicates a premium in contrast to its industry's Forward P/E of 20.51.
Meanwhile, HD's PEG ratio is currently 3.62. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. As the market closed yesterday, the Retail - Home Furnishings industry was having an average PEG ratio of 2.73.
The Retail - Home Furnishings industry is part of the Retail-Wholesale sector. With its current Zacks Industry Rank of 175, this industry ranks in the bottom 30% 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.
Be sure to use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming trading sessions.
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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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