In the latest close session, Home Depot (HD) was down 2.61% at $336.21. The stock’s performance was behind the S&P 500’s daily loss of 0.28%. Elsewhere, the Dow saw a downswing of 1.09%, while the tech-heavy Nasdaq appreciated by 0.2%.
The stock of home-improvement retailer has risen by 7.43% in the past month, leading the Retail-Wholesale sector’s gain of 0.18% and the S&P 500’s gain of 1.64%.
The investment community will be closely monitoring the performance of Home Depot in its forthcoming earnings report. The company is scheduled to release its earnings on August 18, 2026. The company’s upcoming EPS is projected at $4.71, signifying a 0.64% increase compared to the same quarter of the previous year. Our most recent consensus estimate is calling for quarterly revenue of $47.5 billion, up 4.92% from the year-ago period.
Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $15.01 per share and revenue of $171.65 billion, indicating changes of +2.18% and +4.23%, respectively, compared to the previous year.
Investors should also note any recent changes to analyst estimates for Home Depot. These recent revisions tend to reflect the evolving nature of short-term business trends. As such, positive estimate revisions reflect analyst optimism about the business and profitability.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. Over the past month, there’s been no change in the Zacks Consensus EPS estimate. Home Depot is currently a Zacks Rank #4 (Sell).
With respect to valuation, Home Depot is currently being traded at a Forward P/E ratio of 22.99. Its industry sports an average Forward P/E of 22.99, so one might conclude that Home Depot is trading at no noticeable deviation comparatively.
We can also see that HD currently has a PEG ratio of 3.99. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company’s expected earnings growth rate into account. The Retail – Home Furnishings industry currently had an average PEG ratio of 1.92 as of yesterday’s close.
The Retail – Home Furnishings industry is part of the Retail-Wholesale sector. Currently, this industry holds a Zacks Industry Rank of 188, positioning it in the bottom 24% of all 250+ industries.
The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
To follow HD in the coming trading sessions, be sure to utilize Zacks.com.
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The Home Depot, Inc. (HD) : Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).
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