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Here's Why Home Depot (HD) Fell More Than Broader Market
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Home Depot (HD - Free Report) closed the most recent trading day at $358.64, moving -3.1% from the previous trading session. The stock's change was less than the S&P 500's daily loss of 0.4%. Elsewhere, the Dow lost 0.98%, while the tech-heavy Nasdaq added 0.18%.
Shares of the home-improvement retailer have appreciated by 4.68% over the course of the past month, outperforming the Retail-Wholesale sector's gain of 4.14%, and lagging the S&P 500's gain of 4.97%.
The upcoming earnings release of Home Depot will be of great interest to investors. The company's earnings report is expected on August 19, 2025. The company is predicted to post an EPS of $4.71, indicating a 0.86% growth compared to the equivalent quarter last year. Alongside, our most recent consensus estimate is anticipating revenue of $45.51 billion, indicating a 5.42% upward movement from the same quarter last year.
Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $15.04 per share and revenue of $164.45 billion. These totals would mark changes of -1.31% and +3.09%, respectively, from 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 utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. The Zacks Consensus EPS estimate remained stagnant within the past month. As of now, Home Depot holds a Zacks Rank of #3 (Hold).
From a valuation perspective, Home Depot is currently exchanging hands at a Forward P/E ratio of 24.61. This indicates a premium in contrast to its industry's Forward P/E of 19.98.
We can additionally observe that HD currently boasts a PEG ratio of 3.52. 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 average PEG ratio for the Retail - Home Furnishings industry stood at 2.33 at the close of the market yesterday.
The Retail - Home Furnishings industry is part of the Retail-Wholesale sector. This industry, currently bearing a Zacks Industry Rank of 94, finds itself in the top 39% 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.
To follow HD in the coming trading sessions, be sure to utilize Zacks.com.
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Here's Why Home Depot (HD) Fell More Than Broader Market
Home Depot (HD - Free Report) closed the most recent trading day at $358.64, moving -3.1% from the previous trading session. The stock's change was less than the S&P 500's daily loss of 0.4%. Elsewhere, the Dow lost 0.98%, while the tech-heavy Nasdaq added 0.18%.
Shares of the home-improvement retailer have appreciated by 4.68% over the course of the past month, outperforming the Retail-Wholesale sector's gain of 4.14%, and lagging the S&P 500's gain of 4.97%.
The upcoming earnings release of Home Depot will be of great interest to investors. The company's earnings report is expected on August 19, 2025. The company is predicted to post an EPS of $4.71, indicating a 0.86% growth compared to the equivalent quarter last year. Alongside, our most recent consensus estimate is anticipating revenue of $45.51 billion, indicating a 5.42% upward movement from the same quarter last year.
Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $15.04 per share and revenue of $164.45 billion. These totals would mark changes of -1.31% and +3.09%, respectively, from 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 utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. The Zacks Consensus EPS estimate remained stagnant within the past month. As of now, Home Depot holds a Zacks Rank of #3 (Hold).
From a valuation perspective, Home Depot is currently exchanging hands at a Forward P/E ratio of 24.61. This indicates a premium in contrast to its industry's Forward P/E of 19.98.
We can additionally observe that HD currently boasts a PEG ratio of 3.52. 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 average PEG ratio for the Retail - Home Furnishings industry stood at 2.33 at the close of the market yesterday.
The Retail - Home Furnishings industry is part of the Retail-Wholesale sector. This industry, currently bearing a Zacks Industry Rank of 94, finds itself in the top 39% 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.
To follow HD in the coming trading sessions, be sure to utilize Zacks.com.