Home Depot (HD) closed the most recent trading day at $334.81, moving -1.96% from the previous trading session. This change lagged the S&P 500's 1.57% loss on the day. On the other hand, the Dow registered a loss of 0.84%, and the technology-centric Nasdaq decreased by 2.15%.

Heading into today, shares of the home-improvement retailer had lost 8.85% over the past month, outpacing the Retail-Wholesale sector's loss of 11.13% and the S&P 500's loss of 12.16% in that time.

Market participants will be closely following the financial results of Home Depot in its upcoming release. The company plans to announce its earnings on May 20, 2025. On that day, Home Depot is projected to report earnings of $3.59 per share, which would represent a year-over-year decline of 1.1%. Meanwhile, the latest consensus estimate predicts the revenue to be $39.3 billion, indicating a 7.9% increase compared to the same quarter of the previous year.

For the full year, the Zacks Consensus Estimates are projecting earnings of $14.98 per share and revenue of $163.8 billion, which would represent changes of -1.71% and +2.69%, respectively, from the prior year.

Furthermore, it would be beneficial for investors to monitor any recent shifts in analyst projections for Home Depot. These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the company's business health and profitability.

Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.

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, the Zacks Consensus EPS estimate remained stagnant. At present, Home Depot boasts a Zacks Rank of #3 (Hold).

Looking at valuation, Home Depot is presently trading at a Forward P/E ratio of 22.81. This indicates a premium in contrast to its industry's Forward P/E of 17.03.

Investors should also note that HD has a PEG ratio of 3.23 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 Retail - Home Furnishings was holding an average PEG ratio of 1.94 at yesterday's closing price.

The Retail - Home Furnishings industry is part of the Retail-Wholesale sector. This group has a Zacks Industry Rank of 201, putting it in the bottom 19% 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.

Be sure to use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming trading sessions.

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The Home Depot, Inc. (HD) : Free Stock Analysis Report

This article originally published on Zacks Investment Research (zacks.com).

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