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Home Depot (HD) Beats Stock Market Upswing: What Investors Need to Know

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Home Depot (HD - Free Report) closed the most recent trading day at $286.69, moving +1.97% from the previous trading session. The stock outperformed the S&P 500, which registered a daily gain of 0.58%. Elsewhere, the Dow gained 0.49%, while the tech-heavy Nasdaq added 0.45%.

Shares of the home-improvement retailer have depreciated by 12.43% over the course of the past month, underperforming the Retail-Wholesale sector's loss of 4.5%, and the S&P 500's gain of 0.84%.

The investment community will be closely monitoring the performance of Home Depot in its forthcoming earnings report. The company is scheduled to release its earnings on November 17, 2026. The company's upcoming EPS is projected at $3.86, signifying a 3.21% increase 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.

It is also important to note the recent changes to analyst estimates for Home Depot. Such recent modifications usually signify the changing landscape of near-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the business performance and profit potential.

Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. 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 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, there's been a 0.07% rise in the Zacks Consensus EPS estimate. Home Depot currently has a Zacks Rank of #3 (Hold).

With respect to valuation, Home Depot is currently being traded at a Forward P/E ratio of 18.73. Its industry sports an average Forward P/E of 16.8, so one might conclude that Home Depot is trading at a premium comparatively.

Investors should also note that HD has a PEG ratio of 2 right now. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. The Retail - Home Furnishings was holding an average PEG ratio of 1.45 at yesterday's closing price.

The Retail - Home Furnishings industry is part of the Retail-Wholesale sector. With its current Zacks Industry Rank of 112, this industry ranks in the top 46% of all industries, numbering over 250.

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.

Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding trading sessions.

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