Home Depot (HD) closed at $348.24 in the latest trading session, marking a +2.42% move from the prior day. The stock outpaced the S&P 500's daily gain of 1.79%. Elsewhere, the Dow gained 1.71%, while the tech-heavy Nasdaq added 2.59%.

Shares of the home-improvement retailer have depreciated by 3.03% over the course of the past month, underperforming the Retail-Wholesale sector's gain of 8.07%, and the S&P 500's gain of 1.72%.

The upcoming earnings release of Home Depot will be of great interest to investors. The company's earnings report is expected on August 18, 2026. The company's upcoming EPS is projected at $4.71, signifying a 0.64% increase compared to the same quarter of the previous year. At the same time, our most recent consensus estimate is projecting a revenue of $47.5 billion, reflecting a 4.92% rise from the equivalent quarter last year.

For the full year, the Zacks Consensus Estimates project earnings of $15.01 per share and a revenue of $171.65 billion, demonstrating changes of +2.18% and +3.29%, respectively, from the preceding year.

It's also important for investors to be aware of any recent modifications to analyst estimates for Home Depot. These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the business outlook.

Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable rating system.

The Zacks Rank system, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate remained stagnant. Home Depot is holding a Zacks Rank of #4 (Sell) right now.

Looking at valuation, Home Depot is presently trading at a Forward P/E ratio of 22.65. This signifies a premium in comparison to the average Forward P/E of 21.19 for its industry.

We can also see that HD currently has a PEG ratio of 3.93. 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. Retail - Home Furnishings stocks are, on average, holding a PEG ratio of 1.98 based on yesterday's closing prices.

The Retail - Home Furnishings industry is part of the Retail-Wholesale sector. At present, this industry carries a Zacks Industry Rank of 213, placing it within the bottom 14% of over 250 industries.

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.

Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.

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

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