Home Depot Earnings Preview: Evercore Sees Rebound Potential

Ahead of the company's May 20 first-quarter earnings release, a team of Evercore ISI analysts, led by Greg Melich, added Home Depot Inc.(NYSE:HD) to their Tactical Outperform list on May 19.

The analyst firm anticipates that Home Depot Inc.(NYSE:HD) will restate its 2025 guidance for a 2% decline in earnings per share, or approximately $14.95, which aligns with market estimates of $14.98 and Evercore's own forecast of $15. Moreover, the firm believes that sustaining guidance and indicating positive trends may be sufficient to push the shares back toward the $400 mark.

Although the stock has seen a 2% drop since the year began, Evercore believes that reiterating guidance and emphasizing potential gains in comparable sales over the course of the year could improve HD's performance. This is particularly true given that Home Depot is putting itself in a position to profit from a future housing market recovery by continuing to invest in technology, customer service, and the opening of new stores. In a note, the analysts stated:

"HD remains a benchmark retailer, investing in technology, multichannel and stores, even while current demand remains depressed. With hopes rising for an improving Home Improvement market in 2025, we think investors would be well served by having real exposure to the turn."

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Disclosure: None.