Consumer & Market Trends - Home Depot's primary consumers are homeowners, typically dual-income households with higher earnings, experiencing strong employment and wage growth [1] - Consumers are still spending, but a shift is observed towards smaller ticket categories, while larger ticket discretionary categories are experiencing weakness [2] - High interest rates are causing consumers to delay larger, finance-dependent projects like kitchen and bath renovations [3] Impact of Interest Rates - The industry is trying to determine if project activity is delayed or permanently derailed due to high rates [4] - Anticipation of Federal Reserve rate cuts is expected to unlock pent-up demand for larger projects [5] - Lower rates and increased housing market activity are projected to boost demand for big-ticket projects [6] Home Depot's Strategy - Home Depot is positioning itself to capitalize on the re-emergence of demand for large projects, particularly through professional contractors [6]

And we are just getting second quarter results from Home Depot. Let's take a look at those numbers right now. Looks like earnings came in at $468 a share.That was a miss of the street's expectations of $4.71%. Revenue came in at $45.3% billion. That was just slightly light of what the street had been expecting, $45.35% billion.And then you have comp sales, which were up by 1%. The street was looking for 1.3%. That 1% was for total company sales.Home Depot is blaming foreign exchange rates for the miss on co ...

ATLANTA, Aug. 19, 2025 /PRNewswire/ -- The Home Depot®, the world's largest home improvement retailer, today reported sales of $45.3 billion for the second quarter of fiscal 2025, an increase of $2.1 billion, or 4.9% from the second quarter of fiscal 2024. Comparable sales for the second quarter of fiscal 2025 increased 1.0%, and comparable sales in the U.S. increased 1.4%. For the second quarter of fiscal 2025, foreign exchange rates negatively impacted total company comparable sales by approximately 40 ba ...

Let's have a look at how Benzinga's most-accurate analysts have rated the company in the recent period. Considering buying HD stock? Here's what analysts think: The Home Depot, Inc. HD will release earnings results for the second quarter, before the opening bell on Tuesday, Aug. 19. Analysts expect the home improvement retailer to report quarterly earnings at $4.69 per share, up from $4.60 per share in the year-ago period. Home Depot projects to report quarterly revenue of $45.31 billion, compared to the $4 ...

Core Viewpoint - Investors are closely monitoring the upcoming earnings reports from Home Depot and Lowe's for indications of improvement in the home and garden market, which has been facing several challenges [1][2]. Industry Summary - The home and garden retail sector is experiencing difficulties due to a sluggish housing market, tariffs, high interest rates, and consumer caution regarding large purchases. Despite overall retail growth from May to July, building materials and garden supply retailers reported year-over-year declines of at least 4% [2]. - Home Depot and Lowe's have been gaining market share from smaller competitors, benefiting from their strong brand presence and competitive pricing strategies [3]. Company Summary - Home Depot reported total sales of $39.9 billion for its first quarter, reflecting a 9.4% year-over-year increase, although comparable sales decreased by 0.2% due to foreign exchange impacts [4]. - Lowe's experienced a decline in total sales from $21.4 billion to $20.9 billion year-over-year, with comparable sales down 1.7%. The company attributed this drop to unfavorable weather conditions, though it noted growth in online sales and its professional business segment [5]. - Lowe's emphasized its commitment to customer service, achieving the 1 ranking in Customer Satisfaction among Home Improvement Retailers according to J.D. Power. The company is focusing on strategic investments in technology and store environments to enhance customer experience [6].

Retail Performance & Trends - Target has been lagging behind its peers, particularly Walmart, despite different business mixes [1][2] - None of the major big box retailers, including Walmart, Costco, and Best Buy, have confirmed new highs in the S&P 500 [4][6] - Potential opportunity exists if retailers have beats and raises across the board, but this is considered unlikely [7] External Factors & Challenges - Retailers face headwinds related to the potential for a protracted trade war [5] - Investors are concerned about retailers without a "milk and eggs component" (essential goods), suggesting merchandise mix is crucial [14] - Tariffs' impact may only be significantly felt for half the quarter, and the market has already priced some of it in [13] - High credit card bills could negatively impact demand after the back-to-school season [15] Home Improvement Sector - Home Depot is considered an important stock, with details about the housing market being closely monitored [8][9] - High interest rates are seen as potentially beneficial for Home Depot, as homeowners are more likely to improve existing homes rather than move [10][12] - Home Depot expects its "pro business" to return to growth in 2025 [11] Resilient Retailers - Walmart and Home Depot are considered resilient in the face of tariff concerns [16]

Home Improvement Retail - Home improvement sector is expected to turn the corner and start to see positive growth, marking a shift from "bad to less bad" [3] - The surge in rates three years prior is a key factor, as new homeowners typically spend heavily on their homes during this period [4] - Home Depot has strategically built capabilities to better serve professional customers, leading to larger and more planned purchases [6] - Home Depot's advantages have been obscured by the current lukewarm cycle for home improvement [7] Big Box Retail - The general merchandise retail environment has been unusually benign, with limited competition [8] - The impact of tariffs on big box retailers in Q2 is expected to be minimal due to resilient consumer spending [9] - Target faces execution issues and a higher skew towards discretionary items, potentially leading to tougher times [10] Walmart & Grocery - Walmart possesses significant momentum and heft, enabling it to showcase its strengths in Q2 [12] - Amazon's increased investment in grocery and rural areas poses a direct challenge to Walmart [13] - There is a risk of declining economics in the battle for everyday wallet share and customer frequency [14]

Earnings Season Overview - The second quarter earnings season has been successful with more beats and raises than misses, particularly led by the Mag 7 stocks [1] - Nvidia's upcoming report is highly anticipated [1] Retail Sector Focus - This week's focus is on major retailers to assess price increases, inflation, tariff impacts, and consumer behavior [2][3] - Key retailers to watch include Walmart (WMT) and Target (TGT), along with home improvement retailers like Home Depot (HD) and Lowe's (LOW) [3] Home Improvement Retailers (Home Depot & Lowe's) - Home Depot (HD) has a strong earnings surprise track record with only one miss in the last five years [4] - Home Depot's earnings have declined in the last couple of years due to housing market conditions and tariffs, with a projected earnings decline of 1.4% to 4%, but a rebound is expected next year [5][6] - Lowe's (LOW) also has a great earnings surprise track record with earnings expected to decline but then recover, projecting a 2.4% to 4% gain this year and another in 2027 [7][8] - Both Home Depot and Lowe's shares haven't significantly declined as a turnaround is expected and priced in [9] General Retailers (Walmart & Target) - Walmart (WMT) has been performing strongly, with shares attempting to break out, and earnings looking better than Home Depot and Lowe's [9][10] - Walmart's valuation is at 38 times earnings, with a strong earnings surprise track record [10] - Target (TGT) is struggling with declining earnings, trading near 5-year lows, and a 15.6% decline expected for this year [12][13] - Both Walmart and Target are being watched for pricing strategies and consumer buying behavior, considering factors like back-to-school shopping and groceries [11][12][14] Specialty Retailer (Estee Lauder) - Estee Lauder (EL) has a strong earnings track record with mostly beats, but earnings have declined, especially due to the struggling Chinese consumer [15] - Estee Lauder's earnings are expected to improve in the next couple of years, but a 42% decline is expected this year [16] - Estee Lauder's forward PE is not cheap at 42 times, even with the share price decline [16] - Tariffs are impacting beauty products, with E.L.F beauty raising prices, and Estee Lauder's response is being monitored [18]

Core Insights - Home Depot's acquisition of SRS Distribution in 2024 enhances its relationship with professional contractors and expands its product offerings in roofing, landscaping, and pool supplies [1][6] - SRS's planned acquisition of GMS Inc. will further diversify its product range to include drywall, ceilings, and steel framing, thereby broadening its distribution network across North America [2][6] - The integration of SRS and GMS, with over 1,200 locations and more than 8,000 trucks, improves fulfillment and service reliability for professional contractors [3][6] Financial Performance - The Zacks Consensus Estimate for Home Depot's second-quarter sales indicates a year-over-year growth of 5.4%, while earnings per share are expected to see a marginal increase of 0.9% [5] - Current quarter sales are estimated at $45.51 billion, with a year-over-year growth estimate of 5.4% [7] - The earnings per share for the current quarter is projected at 4.71, reflecting a year-over-year growth estimate of 0.86% [8] Market Position - Home Depot shares have increased by 10% over the past year, outperforming the industry growth of 6.6% and key competitors like Lowe's and Floor & Decor [8] - The company trades at a forward price-to-sales ratio of 2.36, which is higher than the industry average of 1.67, indicating a premium valuation compared to peers [9]

So, how can investors capitalize on its dividend yield to earn a regular $500 monthly? To earn $500 per month or $6,000 annually from dividends alone, you would need an investment of approximately $260,396 or around 652 shares. For a more modest $100 per month or $1,200 per year, you would need $51,919 or around 130 shares. To calculate: Divide the desired annual income ($6,000 or $1,200) by the dividend ($9.20 in this case). So, $6,000 / $9.20 = 652 ($500 per month), and $1,200 / $9.20 = 130 shares ($100 p ...