Home Depot (HD) closed the most recent trading day at $368.74, moving +1.44% from the previous trading session. The stock exceeded the S&P 500, which registered a gain of 0.52% for the day. On the other hand, the Dow registered a gain of 1%, and the technology-centric Nasdaq increased by 0.52%.
The home-improvement retailer’s stock has dropped by 1.3% in the past month, falling short of the Retail-Wholesale sector’s gain of 2.37% and the S&P 500’s gain of 5.95%.
The upcoming earnings release of Home Depot will be of great interest to investors. The company’s earnings report is expected on August 19, 2025. On that day, Home Depot is projected to report earnings of $4.71 per share, which would represent year-over-year growth of 0.86%. Meanwhile, the latest consensus estimate predicts the revenue to be $45.51 billion, indicating a 5.42% increase compared to the same quarter of the previous year.
For the full year, the Zacks Consensus Estimates project earnings of $15.04 per share and a revenue of $164.45 billion, demonstrating changes of -1.31% and +3.09%, respectively, from the preceding year.
Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Home Depot. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, upbeat changes in estimates indicate analysts’ favorable outlook on the business health and profitability.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. To capitalize on this, we’ve crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical rating system.
The Zacks Rank system, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed a 0.01% increase. Home Depot presently features a Zacks Rank of #3 (Hold).
In the context of valuation, Home Depot is at present trading with a Forward P/E ratio of 24.17. This valuation marks a premium compared to its industry average Forward P/E of 18.98.
It is also worth noting that HD currently has a PEG ratio of 3.45. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock’s expected earnings growth rate. By the end of yesterday’s trading, the Retail – Home Furnishings industry had an average PEG ratio of 2.23.
The Retail – Home Furnishings industry is part of the Retail-Wholesale sector. At present, this industry carries a Zacks Industry Rank of 152, placing it within the bottom 39% of over 250 industries.
The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within 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 Report
This article originally published on Zacks Investment Research (zacks.com).
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
