Home Depot (HD) closed at $332.30 in the latest trading session, marking a -1.07% move from the prior day. This change lagged the S&P 500's daily gain of 0.12%. Elsewhere, the Dow lost 0.13%, while the tech-heavy Nasdaq added 0.2%.
Shares of the home-improvement retailer have appreciated by 4.43% over the course of the past month, underperforming the Retail-Wholesale sector's gain of 12.69%, and the S&P 500's gain of 9.3%.
Investors will be eagerly watching for the performance of Home Depot in its upcoming earnings disclosure. The company's earnings report is set to be unveiled on May 19, 2026. On that day, Home Depot is projected to report earnings of $3.42 per share, which would represent a year-over-year decline of 3.93%. In the meantime, our current consensus estimate forecasts the revenue to be $41.53 billion, indicating a 4.2% growth compared to the corresponding quarter of the prior year.
For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $15.03 per share and a revenue of $171.13 billion, representing changes of +2.31% and +3.91%, respectively, from the prior year.
Any recent changes to analyst estimates for Home Depot should also be noted by investors. 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 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, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. The Zacks Consensus EPS estimate remained stagnant within the past month. Right now, Home Depot possesses a Zacks Rank of #3 (Hold).
Valuation is also important, so investors should note that Home Depot has a Forward P/E ratio of 22.35 right now. This valuation marks a premium compared to its industry average Forward P/E of 20.74.
We can also see that HD currently has a PEG ratio of 3.67. 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. As the market closed yesterday, the Retail - Home Furnishings industry was having an average PEG ratio of 1.83.
The Retail - Home Furnishings industry is part of the Retail-Wholesale sector. At present, this industry carries a Zacks Industry Rank of 169, placing it within the bottom 31% of over 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 Report
This article originally published on Zacks Investment Research (zacks.com).