Home Depot (HD) closed at $389.68 in the latest trading session, marking a +2.28% move from the prior day. This move outpaced the S&P 500's daily loss of 0.33%. At the same time, the Dow added 0.1%, and the tech-heavy Nasdaq lost 0.59%.
The stock of home-improvement retailer has risen by 1.62% in the past month, leading the Retail-Wholesale sector's loss of 3.93% and the S&P 500's loss of 0%.
Investors will be eagerly watching for the performance of Home Depot in its upcoming earnings disclosure. The company's earnings report is set to be unveiled on February 24, 2026. The company is expected to report EPS of $2.51, down 19.81% from the prior-year quarter. In the meantime, our current consensus estimate forecasts the revenue to be $38.25 billion, indicating a 3.67% decline compared to the corresponding quarter of the prior year.
In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $14.5 per share and a revenue of $164.69 billion, indicating changes of -4.86% and +3.25%, respectively, from the former year.
Investors should also note any recent changes to analyst estimates for Home Depot. Recent revisions tend to reflect the latest near-term business trends. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the business health and profitability.
Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational 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. Over the past month, the Zacks Consensus EPS estimate has moved 0.04% higher. Home Depot is holding a Zacks Rank of #3 (Hold) right now.
With respect to valuation, Home Depot is currently being traded at a Forward P/E ratio of 25.16. This valuation marks a premium compared to its industry average Forward P/E of 21.3.
We can additionally observe that HD currently boasts a PEG ratio of 13.6. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. The average PEG ratio for the Retail - Home Furnishings industry stood at 2.09 at the close of the market yesterday.
The Retail - Home Furnishings industry is part of the Retail-Wholesale sector. At present, this industry carries a Zacks Industry Rank of 203, placing it within the bottom 18% 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.
Ensure to harness Zacks.com to stay updated with all these stock-shifting metrics, among others, in the next 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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