Why HD Surged Ahead of the Market Today

Home Depot's Recent Performance and Outlook

Home Depot (HD) closed its most recent trading session at $364.04, reflecting a positive movement of 1.29% compared to the previous day’s closing price. This outperformed the S&P 500, which saw a modest gain of 0.14% on the same day. Meanwhile, the Dow Jones Industrial Average experienced a slight decline of 0.04%, while the Nasdaq Composite, known for its tech-heavy composition, rose by 0.38%.

Looking back over the past month, shares of the home-improvement retailer have increased by 2.8%. However, this growth has been slower than that of the broader Retail-Wholesale sector, which gained 4.28%, and the S&P 500, which climbed by 5.35%. Investors are now closely watching how Home Depot performs in the upcoming earnings report, which is scheduled to be released on August 19, 2025.

Analysts anticipate that the company will report an earnings per share (EPS) of $4.71 for the quarter, marking a 0.86% increase from the same period last year. Revenue is expected to reach $45.51 billion, representing a 5.42% rise compared to the previous year’s figures. For the full fiscal year, the Zacks Consensus Estimates project an EPS of $15.04 and revenue of $164.45 billion, indicating a -1.31% change in earnings and a +3.09% increase in revenue from the prior year.

Analyst Revisions and Market Sentiment

Investors should also pay attention to any recent changes in analyst estimates for Home Depot. These revisions often reflect shifts in short-term business conditions and can signal optimism about the company’s future performance. Positive estimate revisions are typically viewed as a sign of confidence in the company’s outlook.

To help investors make informed decisions, a proprietary model called the Zacks Rank has been developed. This system evaluates estimate changes and provides a rating ranging from #1 (Strong Buy) to #5 (Strong Sell). Stocks ranked #1 have historically delivered an average annual return of +25% since 1988, according to external audits. As of now, Home Depot holds a Zacks Rank of #3 (Hold), indicating a neutral stance.

Valuation Metrics and Industry Position

In terms of valuation, Home Depot is currently trading at a Forward P/E ratio of 23.9, which is higher than the industry average of 19.97. This suggests that the stock is priced at a premium relative to its peers. Additionally, the company has a PEG ratio of 3.41. The PEG ratio, similar to the P/E ratio, factors in the company’s expected earnings growth. The average PEG ratio for the Retail - Home Furnishings industry was 2.26 at the end of the previous trading day.

The Retail - Home Furnishings industry falls under the broader Retail-Wholesale sector. This group has a Zacks Industry Rank of 93, placing it in the top 38% of all industries. The Zacks Industry Rank assesses the strength of industry groups based on the average Zacks Rank of the individual stocks within them. Research indicates that the top 50% of rated industries outperform the bottom half by a factor of 2 to 1.

Key Takeaways for Investors

For those interested in tracking these metrics and more, tools like HAWXTECH offer real-time insights into stock-moving indicators. As Home Depot prepares to release its earnings report, investors will be watching closely for signs of continued growth and stability in the home improvement sector.