Home improvement retailer Home Depot (HD Quick QuoteHD - Free Report) is set to announce fourth-quarter earnings results before Tuesday’s opening bell. The company missed the earnings mark in three of the last four quarters. But with the stock showing renewed momentum this year, is HD a buy ahead of the release?

Find the latest EPS estimates and surprises on Zacks Earnings Calendar.

Analysts are expecting Home Depot to post earnings of $2.51 per share, reflecting a -19.8% decline versus the same quarter last year. Revenues are anticipated to drop -3.65% during the quarter to $38.25 billion. This outlook aligns with Home Depot's reaffirmed guidance for the latest fiscal year, which includes approximately 3% total sales growth and slightly positive comparable sales for the 52-week period.

Steady demand for essential repair and maintenance projects is supporting Home Depot’s business. The company continues to advance its integrated retail and omnichannel strategy with increasing investments in supply chain optimization and digital AI tools.

The Zacks Rank #3 (Hold) for HD suggests balanced expectations, bolstered by a positive Earnings ESP (Expected Surprise Prediction) of +5.61%, indicating potential for an upside surprise. Investors will watch closely for updates on professional customer trends and integration of recent acquisitions like GMS.