Home Depot (HD) ended the recent trading session at $367.28, demonstrating a -1.19% change from the preceding day's closing price. This change lagged the S&P 500's 0.79% loss on the day. On the other hand, the Dow registered a loss of 0.94%, and the technology-centric Nasdaq decreased by 0.92%.
Shares of the home-improvement retailer have appreciated by 1.18% over the course of the past month, underperforming the Retail-Wholesale sector's gain of 2.47%, and the S&P 500's gain of 5.22%.
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 August 19, 2025. The company is predicted to post an EPS of $4.71, indicating a 0.86% growth compared to the equivalent quarter last year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $45.51 billion, up 5.42% from the year-ago period.
In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $15.04 per share and a revenue of $164.45 billion, indicating changes of -1.31% and +3.09%, respectively, from the former year.
Investors might also notice recent changes to analyst estimates for Home Depot. These latest adjustments often mirror the shifting dynamics of short-term business patterns. With this in mind, we can consider positive estimate revisions a sign of optimism about the business outlook.
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, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. The Zacks Consensus EPS estimate remained stagnant within the past month. Home Depot is holding a Zacks Rank of #3 (Hold) right now.
In the context of valuation, Home Depot is at present trading with a Forward P/E ratio of 24.72. For comparison, its industry has an average Forward P/E of 20.3, which means Home Depot is trading at a premium to the group.
It is also worth noting that HD currently has a PEG ratio of 3.53. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. As the market closed yesterday, the Retail - Home Furnishings industry was having an average PEG ratio of 2.36.
The Retail - Home Furnishings industry is part of the Retail-Wholesale sector. Currently, this industry holds a Zacks Industry Rank of 90, positioning it in the top 37% of all 250+ industries.
The Zacks Industry Rank is ordered from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding 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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