Home Depot (HD) closed at $387.20 in the latest trading session, marking a +1.6% move from the prior day. The stock exceeded the S&P 500, which registered a loss of 0.51% for the day. On the other hand, the Dow registered a gain of 0.53%, and the technology-centric Nasdaq decreased by 1.51%.
Coming into today, shares of the home-improvement retailer had gained 9.11% in the past month. In that same time, the Retail-Wholesale sector gained 5.66%, while the S&P 500 gained 0.93%.
The investment community will be paying close attention to the earnings performance of Home Depot in its upcoming release. The company is slated to reveal its earnings on February 24, 2026. The company's upcoming EPS is projected at $2.51, signifying a 19.81% drop compared to the same quarter of the previous year. Meanwhile, our latest consensus estimate is calling for revenue of $38.25 billion, down 3.67% from the prior-year quarter.
For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $14.5 per share and a revenue of $164.69 billion, representing changes of -4.86% and 0%, respectively, from the prior year.
Investors should also note any recent changes to analyst estimates for Home Depot. These latest adjustments often mirror the shifting dynamics of short-term business patterns. Consequently, upward revisions in estimates express analysts' positivity towards the business operations and its ability to generate profits.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. 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, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 0.02% lower. Home Depot currently has a Zacks Rank of #4 (Sell).
Digging into valuation, Home Depot currently has a Forward P/E ratio of 25.17. This expresses a premium compared to the average Forward P/E of 21.14 of its industry.
We can also see that HD currently has a PEG ratio of 13.6. 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. The Retail - Home Furnishings industry currently had an average PEG ratio of 2.03 as of yesterday's close.
The Retail - Home Furnishings industry is part of the Retail-Wholesale sector. This industry currently has a Zacks Industry Rank of 216, which puts it in the bottom 12% of all 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.
Be sure to follow all of these stock-moving metrics, and many 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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