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The Home Depot, Inc. (HD) is a leading global home improvement retailer with a massive market cap of $358.6 billion. Based in Atlanta, Georgia, it offers a diverse range of products and services through its stores, distribution centers, and e-commerce websites. The company is expected to release its fiscal Q2 earnings results before the market opens on Tuesday, Aug. 13.
Ahead of this event, analysts project the home improvement giant to report a profit of $4.60 per share, a slight decline of 1.1% from $4.65 per share in the year-ago quarter. However, the company has consistently surpassed Wall Street's bottom-line estimates in each of the last four quarterly reports. In Q1 2025, HD reported an EPS of $3.63, marginally beating the consensus estimate.
For fiscal 2025, analysts forecast HD to report EPS of $15.30, up 1.3% from $15.11 in fiscal 2024. Looking ahead to fiscal 2026, analysts anticipate EPS to grow 5.9% year over year to $16.20.
In 2024, Home Depot gained 4.6%, lagging behind the broader S&P 500 Index's ($SPX) 14.5% return but outpacing the S&P 500 Cons Disc Sector SPDR's (XLY) 3.8% increase on a YTD basis.
Shares of Home Depot fell marginally on May 14 after its Q1 earnings results due to a bigger-than-expected drop in quarterly same-store sales. This signaled weaker consumer spending on big-ticket items amid higher borrowing costs and elevated inflation.
However, the stock recovered 2.4% the next day as investors responded positively to the company's reaffirmation of its fiscal 2024 targets. This, coupled with the company's optimism about a potential recovery in the latter half of the year, highlights the potential for a significant rebound in home improvement activity if the Federal Reserve cuts interest rates.
Analysts' consensus view on Home Depot stock is bullish, with a "Strong Buy" rating overall. Among 30 analysts covering the stock, 22 suggest a "Strong Buy," one gives a "Moderate Buy," and seven recommend a "Hold."
This configuration is slightly more bullish than three months ago, with 21 analysts suggesting a "Strong Buy." The average analyst price target for HD is $386.61, suggesting a potential upside of just 6.9% from current levels.
On the date of publication, Sohini Mondal did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
