Home Depot (HD) Stock Slides as Market Rises: Facts to Know Before You Trade

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]