In the latest trading session, Home Depot (HD) closed at $391.90, marking a +1.16% move from the previous day. The stock's change was more than the S&P 500's daily gain of 0.53%. Elsewhere, the Dow saw an upswing of 0.52%, while the tech-heavy Nasdaq appreciated by 0.52%.
Prior to today's trading, shares of the home-improvement retailer had lost 7.21% lagged the Retail-Wholesale sector's loss of 5.41% and the S&P 500's gain of 0.71%.
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 predicted to post an EPS of $3.84, indicating a 1.59% growth compared to the equivalent quarter last year. At the same time, our most recent consensus estimate is projecting a revenue of $41.04 billion, reflecting a 2.06% rise from the equivalent quarter last year.
For the annual period, the Zacks Consensus Estimates anticipate earnings of $15.01 per share and a revenue of $164.1 billion, signifying shifts of -1.51% and +2.87%, respectively, from the last year.
It's also important for investors to be aware of any recent modifications to analyst estimates for Home Depot. These latest adjustments often mirror the shifting dynamics of short-term business patterns. Therefore, positive revisions in estimates convey analysts' confidence in the business performance and profit potential.
Based on our research, we believe these estimate revisions are directly related to near-term stock moves. 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 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. Over the last 30 days, the Zacks Consensus EPS estimate has moved 0.09% lower. Currently, Home Depot is carrying a Zacks Rank of #3 (Hold).
Digging into valuation, Home Depot currently has a Forward P/E ratio of 25.81. This indicates a premium in contrast to its industry's Forward P/E of 21.95.
We can also see that HD currently has a PEG ratio of 3.68. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. The Retail - Home Furnishings industry currently had an average PEG ratio of 2.64 as of yesterday's close.
The Retail - Home Furnishings industry is part of the Retail-Wholesale sector. At present, this industry carries a Zacks Industry Rank of 154, placing it within the bottom 38% of over 250 industries.
The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming 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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