Core Insights - Home Depot is expected to report fourth-quarter earnings with year-over-year sales growth, despite a projected decline in comparable store sales for the ninth consecutive quarter [1][5]. Sales and Earnings Expectations - Analysts anticipate adjusted earnings per share (EPS) of $3.02 and sales of $39.06 billion, an increase from $34.79 billion a year ago [3]. - Comparable store sales are forecasted to decline by 1.66% year-over-year, influenced by inflation affecting sales of big-ticket items [3]. Analyst Sentiment - The majority of analysts maintain a bullish outlook on Home Depot, with eight "buy" ratings, three "hold," and one "sell," and an average price target of approximately $433, which is about 10% above the current stock level [2][5]. - JPMorgan analysts have raised their price target for Home Depot from $450 to $475, citing its valuation compared to retail peers and adding it to their "Analyst Focus List as a growth investment" [4][5].

Core Viewpoint - Home Depot is expected to report increased revenues and earnings for the fourth quarter of fiscal 2024, driven by strategic acquisitions and improved seasonal demand [1][2][5]. Financial Performance - The Zacks Consensus Estimate for fourth-quarter revenues is $39 billion, reflecting a 12.2% year-over-year growth [1]. - The estimated earnings per share (EPS) is $3.08, indicating a 9.2% increase from the previous year [2]. - Home Depot has shown a positive earnings surprise trend, with an average surprise of 2.3% over the last four quarters [3]. Strategic Initiatives - The acquisition of SRS Distribution Inc. is expected to contribute significantly to sales growth [5][6]. - The "One Home Depot" investment strategy focuses on supply-chain expansion and digital improvements, enhancing online traffic and sales [7][19]. - The company anticipates a 4% year-over-year sales increase for fiscal 2024, supported by additional sales from the 53rd week and SRS [6]. Market Challenges - Higher interest rates and macroeconomic uncertainty are anticipated to negatively impact consumer demand for home improvement projects [8][20]. - Comparable customer transactions are projected to decline by 2.5% for fiscal 2024, affecting overall sales performance [9]. Margin and Valuation - Home Depot's gross margin is projected at 33.5% for fiscal 2024, with an operating margin of 13.5% [10][11]. - The stock trades at a forward P/E multiple of 25.23X, above the industry average of 23.12X, indicating a premium valuation [16]. Competitive Position - Home Depot's stock has gained 8.6% over the past year, underperforming compared to the broader industry and S&P 500 [12][13]. - The company maintains a competitive edge through its interconnected retail strategy and strong Pro customer growth [18][19].

Group 1 - Home Depot's stock closed at $395.43, reflecting a decline of 1.95% from the previous day, underperforming the S&P 500's gain of 0.24% [1] - Over the past month, Home Depot's shares have decreased by 3.61%, while the Retail-Wholesale sector gained 5.98% and the S&P 500 increased by 2.37% [1] Group 2 - The upcoming earnings report for Home Depot is scheduled for February 25, 2025, with an expected EPS of $3.08, indicating a 9.22% increase from the same quarter last year [2] - The Zacks Consensus Estimate projects net sales of $39.02 billion, representing a 12.17% rise from the previous year [2] Group 3 - Recent changes in analyst estimates for Home Depot are important as they reflect short-term business trends, with positive revisions indicating analyst optimism [3] - Estimate revisions are correlated with near-term share price momentum, which can be leveraged using the Zacks Rank system [4] Group 4 - The Zacks Rank system ranges from 1 (Strong Buy) to 5 (Strong Sell), with 1 stocks historically returning an average of +25% annually since 1988 [5] - Over the last 30 days, the Zacks Consensus EPS estimate for Home Depot has decreased by 0.33%, and the company currently holds a Zacks Rank of 3 (Hold) [5] Group 5 - Home Depot's Forward P/E ratio is 25.85, which is higher than the industry average of 20.08, indicating that the company is trading at a premium [6] - The current PEG ratio for Home Depot is 4.12, compared to the industry average PEG ratio of 2.03, suggesting a higher valuation relative to expected earnings growth [7] Group 6 - The Retail - Home Furnishings industry, part of the Retail-Wholesale sector, has a Zacks Industry Rank of 141, placing it in the bottom 44% of over 250 industries [7] - The Zacks Industry Rank indicates that the top 50% rated industries outperform the bottom half by a factor of 2 to 1 [8]

I have an actively managed investment portfolio, and I regularly trade stocks within my investing universe (or watch list) depending upon the stock’s price relative to my estimate of its intrinsic value and its market trading patterns (technical indicators).I have degrees in Applied Chemistry, Accounting and an MBA. I also have completed the NYU Stern Certificate in Advanced Valuation with High Honors. I have held senior executive roles in a variety industries including glass, building materials, consumer p ...

The Home Depot Inc. (HD) stock has gained 6.1% in the year-to-date period, marking an underperformance from the broader industry’s 8.3% rise. However, it has outperformed the Retail-Wholesale sector and the S&P 500’s growth of 3.1% and 2.8%, respectively.However, the HD stock has shown remarkable growth compared with its industry peers like Lowe’s Companies Inc. (LOW) , FGI Industries (FGI) and Fortune Brands Innovations, Inc.’s (FBIN) gains of 2.4%, 4.5% and 0.1%, respectively, in the year-to-date period.H ...

A closely watched government inflation gauge came in hotter than expected in January, fueled in part by an uptick in housing costs. If the trend continues, it could put a damper on housing sales and home improvements.Investors are reading the data as bad news for Home Depot (HD -1.96%), sending the home improvement giant's stock down 3% as of 10:30 a.m. ET.A sluggish outlookThe housing sector is closely linked to interest rates. For most families, buying a house -- or doing a major remodeling project -- can ...

ATLANTA, Feb. 11, 2025 /PRNewswire/ -- The Home Depot®, the world's largest home improvement retailer, announced today that it will hold its Fourth Quarter & Fiscal Year Earnings Conference Call on Tuesday, February 25, at 9 a.m. ET.A webcast will be available by logging onto http://ir.homedepot.com/events-and-presentations and selecting the Fourth Quarter Earnings Conference Call icon. The webcast will be archived, and the replay will be available beginning at approximately noon on February 25.The Home Dep ...

Sales surged for Home Depot (HD -0.78%) during the pandemic. How is the stock doing now?*Stock prices used were the afternoon prices of Jan. 31, 2025. The video was published on Feb. 2, 2025. ...

Core Viewpoint - Home Depot is expected to report strong earnings growth in its upcoming earnings release, with significant increases in both EPS and revenue compared to the previous year [2][3]. Financial Performance - Home Depot's stock closed at $418.83, reflecting a -1.42% change from the previous day, underperforming the S&P 500's gain of 0.92% [1] - Over the past month, Home Depot shares have increased by 9.1%, outperforming the Retail-Wholesale sector's gain of 4.85% and the S&P 500's gain of 0.81% [1] - The anticipated EPS for the upcoming earnings report is $3.07, representing an 8.87% increase year-over-year [2] - Expected revenue for the same period is $38.81 billion, indicating an 11.56% increase compared to the previous year [2] - For the annual period, the Zacks Consensus Estimates predict earnings of $15.12 per share and revenue of $158.62 billion, reflecting shifts of +0.07% and +3.9% respectively from last year [3] Analyst Sentiment - Recent shifts in analyst projections for Home Depot are crucial for understanding near-term business trends, with upward revisions indicating positive sentiment towards the company's operations [4] - The Zacks Rank system, which incorporates estimate changes, currently rates Home Depot as 2 (Buy), suggesting a favorable outlook [6] Valuation Metrics - Home Depot has a Forward P/E ratio of 28.1, which is higher than the industry average of 21.68, indicating it is trading at a premium [7] - The company has a PEG ratio of 4.48, compared to the Retail - Home Furnishings industry's average PEG ratio of 2.24, suggesting higher expected earnings growth relative to its price [8] Industry Context - The Retail - Home Furnishings industry, part of the Retail-Wholesale sector, holds a Zacks Industry Rank of 90, placing it in the top 36% of over 250 industries [9]

Company Overview - Home Depot operates 2,345 stores with trailing-12-month sales of $155 billion, making it the clear leader in the home improvement industry [1] - The company's shares have delivered a total return of 211,200% over the past four decades [1] Recent Performance - Home Depot experienced strong double-digit revenue growth in fiscal 2020 and 2021, driven by low interest rates and increased household spending on renovations during the COVID-19 pandemic [2] - The company posted a 3.2% same-store sales decline in fiscal 2023, with executives expecting a further 2.5% drop in fiscal 2024 due to higher interest rates and inflationary pressures [3] Industry Position - The home improvement industry is valued at approximately $1 trillion annually, with Home Depot holding a 15% market share [5] - The company benefits from durable competitive advantages, including strong brand recognition, scale-related benefits, and investments in supply chain and omnichannel capabilities [6] Industry Tailwinds - Positive industry factors include an aging housing supply, ongoing housing inventory shortages, and rapidly rising U S housing prices over the past five years, which support long-term renovation demand [7] Valuation and Capital Returns - Home Depot shares trade at a price-to-earnings (P/E) ratio of 27.9, representing a premium to the overall S&P 500 and indicating improving market sentiment [8] - The company paid $6.7 billion in dividends through the first three quarters of fiscal 2024 and reduced its diluted share count by 6% over the last three years through stock repurchases [10] Long-Term Outlook - Despite recent headwinds, Home Depot's revenue and net income are expected to be higher in five to ten years, supported by its competitive strengths and favorable industry trends [9]