In the latest trading session, Home Depot (HD) closed at $338.27, marking a -1.8% move from the previous day. The stock's change was less than the S&P 500's daily loss of 1.52%. On the other hand, the Dow registered a loss of 2.19%, and the technology-centric Nasdaq decreased by 1.74%.
The home-improvement retailer's shares have seen a decrease of 2.33% over the last month, not keeping up with the Retail-Wholesale sector's gain of 1.87% and the S&P 500's gain of 1.92%.
Market participants will be closely following the financial results of Home Depot in its upcoming release. The company plans to announce its earnings on August 18, 2026. The company is expected to report EPS of $4.71, up 0.64% from the prior-year quarter. Meanwhile, the latest consensus estimate predicts the revenue to be $47.5 billion, indicating a 4.92% increase compared to the same quarter of the previous year.
For the annual period, the Zacks Consensus Estimates anticipate earnings of $15.01 per share and a revenue of $171.65 billion, signifying shifts of +2.18% and +4.23%, respectively, from the last year.
It is also important to note the recent changes to analyst estimates for Home Depot. These recent revisions tend to reflect the evolving nature of short-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable rating system.
The Zacks Rank system, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has remained steady. At present, Home Depot boasts a Zacks Rank of #4 (Sell).
In terms of valuation, Home Depot is presently being traded at a Forward P/E ratio of 22.94. This expresses a premium compared to the average Forward P/E of 22.85 of its industry.
It is also worth noting that HD currently has a PEG ratio of 3.98. 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. The Retail - Home Furnishings industry currently had an average PEG ratio of 1.97 as of yesterday's close.
The Retail - Home Furnishings industry is part of the Retail-Wholesale sector. This group has a Zacks Industry Rank of 96, putting it in the top 40% 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.
You can find more information on all of these metrics, and much more, on 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).