In the latest close session, Home Depot (HD) was up +1.1% at $341.44. The stock's change was more than the S&P 500's daily gain of 0.38%. Meanwhile, the Dow experienced a rise of 0.29%, and the technology-dominated Nasdaq saw an increase of 0.62%.
The stock of home-improvement retailer has risen by 0.19% in the past month, lagging the Retail-Wholesale sector's gain of 0.54% and the S&P 500's gain of 1.61%.
The upcoming earnings release of Home Depot will be of great interest to investors. The company's earnings report is expected on August 18, 2026. On that day, Home Depot is projected to report earnings of $4.71 per share, which would represent year-over-year growth of 0.64%. In the meantime, our current consensus estimate forecasts the revenue to be $47.5 billion, indicating a 4.92% growth compared to the corresponding quarter of the prior year.
Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $15.01 per share and revenue of $171.65 billion. These totals would mark changes of +2.18% and +4.23%, respectively, from last year.
Any recent changes to analyst estimates for Home Depot should also be noted by investors. These latest adjustments often mirror the shifting dynamics of short-term business patterns. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the business health and profitability.
Our research shows that these estimate changes are directly correlated with near-term stock prices. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection remained stagnant. Home Depot currently has a Zacks Rank of #4 (Sell).
With respect to valuation, Home Depot is currently being traded at a Forward P/E ratio of 22.5. For comparison, its industry has an average Forward P/E of 22.5, which means Home Depot is trading at no noticeable deviation to the group.
It is also worth noting that HD currently has a PEG ratio of 3.9. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. The Retail - Home Furnishings was holding an average PEG ratio of 1.88 at yesterday's closing price.
The Retail - Home Furnishings industry is part of the Retail-Wholesale sector. This industry, currently bearing a Zacks Industry Rank of 171, finds itself in the bottom 31% echelons of all 250+ industries.
The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in 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).