In the latest trading session, Home Depot (HD) closed at $377.69, marking a -1.59% move from the previous day. This change lagged the S&P 500's daily loss of 0.28%. Elsewhere, the Dow saw a downswing of 0.52%, while the tech-heavy Nasdaq depreciated by 0.08%.
The stock of home-improvement retailer has fallen by 7.12% in the past month, lagging the Retail-Wholesale sector's loss of 3.47% and the S&P 500's gain of 4.03%.
Analysts and investors alike will be keeping a close eye on the performance of Home Depot in its upcoming earnings disclosure. The company's earnings report is set to go public on November 18, 2025. The company is forecasted to report an EPS of $3.85, showcasing a 1.85% upward movement from the corresponding quarter of the prior year. At the same time, our most recent consensus estimate is projecting a revenue of $41.09 billion, reflecting a 2.18% rise from the equivalent quarter last year.
Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $15.02 per share and revenue of $164.15 billion, indicating changes of -1.44% and +2.91%, respectively, compared to the previous year.
Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Home Depot. These revisions help to show the ever-changing nature of near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the business outlook.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable 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. Within the past 30 days, our consensus EPS projection has moved 0.01% lower. As of now, Home Depot holds a Zacks Rank of #3 (Hold).
Valuation is also important, so investors should note that Home Depot has a Forward P/E ratio of 25.55 right now. This denotes a premium relative to the industry average Forward P/E of 22.34.
Meanwhile, HD's PEG ratio is currently 3.64. 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. The Retail - Home Furnishings was holding an average PEG ratio of 2.61 at yesterday's closing price.
The Retail - Home Furnishings industry is part of the Retail-Wholesale sector. This group has a Zacks Industry Rank of 205, putting it in the bottom 18% of all 250+ industries.
The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
You can find more information on all of these metrics, and much more, on Zacks.com.
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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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