Home Depot (HD) closed at $315.06 in the latest trading session, marking a +1.67% move from the prior day. The stock outpaced the S&P 500's daily gain of 0.28%. On the other hand, the Dow registered a gain of 1.02%, and the technology-centric Nasdaq decreased by 0.02%.
Shares of the home-improvement retailer have appreciated by 4.27% over the course of the past month, underperforming the Retail-Wholesale sector's gain of 4.46%, and outperforming the S&P 500's gain of 0.67%.
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 November 17, 2026. It is anticipated that the company will report an EPS of $3.86, marking a 3.21% rise compared to the same quarter of the previous year. Our most recent consensus estimate is calling for quarterly revenue of $42.72 billion, up 3.3% from the year-ago period.
Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $15.02 per share and revenue of $171.44 billion, indicating changes of +2.25% and +4.1%, respectively, compared to the previous year.
Investors might also notice recent changes to analyst estimates for Home Depot. These revisions help to show the ever-changing nature of near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the business outlook.
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 ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 0.07% higher. At present, Home Depot boasts a Zacks Rank of #3 (Hold).
Digging into valuation, Home Depot currently has a Forward P/E ratio of 20.64. This expresses a premium compared to the average Forward P/E of 17.04 of its industry.
Also, we should mention that HD has a PEG ratio of 2.2. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. Retail - Home Furnishings stocks are, on average, holding a PEG ratio of 1.53 based on yesterday's closing prices.
The Retail - Home Furnishings industry is part of the Retail-Wholesale sector. At present, this industry carries a Zacks Industry Rank of 79, placing it within the top 33% 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.
Be sure to use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming 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).