Shares of Home Depot Inc (NYSE:HD) are trading 3.4% lower at $300.05, extending their recent pullback, now heading for a fifth-straight daily drop and earlier tapped a more than two-year low of $299.27. HD has shed over 12% in 2026 and is now gearing up for its first-quarter earnings report, due out before the open on Tuesday, May 19.
Over the past two years, HD has had a mixed reaction to earnings, finishing the next session lower after four of the last eight reports, including a 6% drop in November. The stock averaged a move of 2.2% in this time frame, regardless of direction. This time around, a larger-than-usual 6.8% shift is anticipated by options traders.
Options traders remain optimistic ahead of the event. This is per HD's 50-day call/put volume ratio of 2.56 at the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), which sits higher than 93% of readings from the last year.
Currently 22 of the 34 brokerages in coverage sport a "buy" or "strong buy" recommendation. This leaves ample room for bears to move in, should this bullish sentiment begin to unwind.
