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Why Home Depot (HD) Outpaced the Stock Market Today

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Home Depot (HD - Free Report) closed the most recent trading day at $364.04, moving +1.29% from the previous trading session. The stock exceeded the S&P 500, which registered a gain of 0.14% for the day. At the same time, the Dow lost 0.04%, and the tech-heavy Nasdaq gained 0.38%.

Heading into today, shares of the home-improvement retailer had gained 2.8% over the past month, lagging the Retail-Wholesale sector's gain of 4.28% and the S&P 500's gain of 5.35%.

Analysts and investors alike will be keeping a close eye on the performance of Home Depot in its upcoming earnings disclosure. The company's earnings report is set to go public on August 19, 2025. The company's upcoming EPS is projected at $4.71, signifying a 0.86% increase compared to the same quarter of the previous year. Simultaneously, our latest consensus estimate expects the revenue to be $45.51 billion, showing a 5.42% escalation compared to the year-ago quarter.

For the full year, the Zacks Consensus Estimates project earnings of $15.04 per share and a revenue of $164.45 billion, demonstrating changes of -1.31% and +3.09%, respectively, from the preceding year.

Investors should also note any recent changes to analyst estimates for Home Depot. These latest adjustments often mirror the shifting dynamics of short-term business patterns. With this in mind, we can consider positive estimate revisions a sign of optimism about the business outlook.

Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. 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, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed an unchanged state. Currently, Home Depot is carrying a Zacks Rank of #3 (Hold).

In terms of valuation, Home Depot is currently trading at a Forward P/E ratio of 23.9. This signifies a premium in comparison to the average Forward P/E of 19.97 for its industry.

Investors should also note that HD has a PEG ratio of 3.41 right now. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. The average PEG ratio for the Retail - Home Furnishings industry stood at 2.26 at the close of the market yesterday.

The Retail - Home Furnishings industry is part of the Retail-Wholesale sector. This group has a Zacks Industry Rank of 93, putting it in the top 38% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.


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