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Why Home Depot (HD) Outpaced the Stock Market Today

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Home Depot (HD - Free Report) ended the recent trading session at $396.00, demonstrating a +2.19% change from the preceding day's closing price. This move outpaced the S&P 500's daily gain of 1.14%. Meanwhile, the Dow gained 1.1%, and the Nasdaq, a tech-heavy index, added 1.39%.

The stock of home-improvement retailer has risen by 4.71% in the past month, leading the Retail-Wholesale sector's gain of 1.54% and the S&P 500's gain of 2%.

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 5.41% escalation compared to the year-ago quarter.

HD's full-year Zacks Consensus Estimates are calling for earnings of $15.03 per share and revenue of $164.4 billion. These results would represent year-over-year changes of -1.38% and +3.07%, respectively.

Investors might also notice recent changes to analyst estimates for Home Depot. These latest adjustments often mirror the shifting dynamics of short-term business patterns. As such, positive estimate revisions reflect analyst optimism about the business and profitability.

Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. 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, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. Over the past month, there's been a 0.02% rise in the Zacks Consensus EPS estimate. Currently, Home Depot is carrying a Zacks Rank of #3 (Hold).

In the context of valuation, Home Depot is at present trading with a Forward P/E ratio of 25.78. This indicates a premium in contrast to its industry's Forward P/E of 19.83.

We can also see that HD currently has a PEG ratio of 3.68. 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 average PEG ratio for the Retail - Home Furnishings industry stood at 2.75 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 159, putting it in the bottom 36% of all 250+ industries.

The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming 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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