In the latest trading session, Home Depot (HD) closed at $385.03, marking a -1.01% move from the previous day. The stock's change was less than the S&P 500's daily gain of 0.58%. Meanwhile, the Dow experienced a rise of 0.31%, and the technology-dominated Nasdaq saw an increase of 0.89%.
Shares of the home-improvement retailer witnessed a loss of 5.08% over the previous month, trailing the performance of the Retail-Wholesale sector with its loss of 3.04%, and the S&P 500's gain of 0.16%.
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. Meanwhile, the latest consensus estimate predicts the revenue to be $41.04 billion, indicating a 2.06% increase compared to the same quarter of the previous year.
For the full year, the Zacks Consensus Estimates are projecting earnings of $15.01 per share and revenue of $164.1 billion, which would represent changes of -1.51% and +2.87%, respectively, from the prior year.
Investors might also notice recent changes to analyst estimates for Home Depot. These recent revisions tend to reflect the evolving nature of short-term business trends. Consequently, upward revisions in estimates express analysts' positivity towards the business operations and its ability to generate profits.
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, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 0.09% lower. At present, Home Depot boasts a Zacks Rank of #3 (Hold).
In terms of valuation, Home Depot is currently trading at a Forward P/E ratio of 25.91. This valuation marks a premium compared to its industry average Forward P/E of 23.32.
Investors should also note that HD has a PEG ratio of 3.69 right now. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. By the end of yesterday's trading, the Retail - Home Furnishings industry had an average PEG ratio of 2.25.
The Retail - Home Furnishings industry is part of the Retail-Wholesale sector. Currently, this industry holds a Zacks Industry Rank of 174, positioning it in the bottom 30% 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.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming 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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