Shares of Home Depot Inc (NYSE:HD) are higher this morning, even after the retail brand reported lower-than-expected second-quarter results, with earnings of $4.68 per share on revenue of $45.28 billion dollars. Despite missing estimates for the second straight quarter, the Georgia-based company reaffirmed its full-year guidance. The stock has managed to weather tariff concerns, supported by strong online sales and steady demand among its customer base for smaller home improvement projects.
At last glance, HD was up 3.3% to trade at $407.52, its highest level since February. Looking to snap a three-day win streak, the equity is up 4.4% year-to-date. The stock has historically seen muted post-earnings results, but if momentum holds, it would mark Home Depot's biggest earnings rise since November 2023.
Analysts remain largely confident in the investment's outlook. Of the 34 firms in coverage, 26 rate it a "buy" or better, compared to the eight who call it a "hold" or worse. Also worth noting is that Telsey Advisory Group Securities reaffirmed an "outperform" rating today.
This bullish sentiment is spilling over onto the options pits, where 44,000 calls and 28,000 puts have already been exchanged today, seven times the usual intraday amount. The most popular contract is the August 430 call, followed by August 420 and August 415 calls, with positions opening at all three.
Options traders have been more bullish than usual leading up to today, too. The stock's 50-day call/put volume ratio of 1.85 at the International Securities (ISE), Cboe Options (CBOE) and NASDAQ OMX PHLX (PHLX) also ranks higher than 95% of readings from the past year.
