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Atlanta, Georgia-based The Home Depot, Inc. (HD) operates as a home improvement retailer. Valued at $403 billion by market cap, the company offers a wide range of building materials, home improvement, lawn, and garden products, as well as provides DYI ideas, installation, repair, and other services. The world's largest home improvement specialty retailer is expected to announce its fiscal third-quarter earnings for 2024 on Tuesday, Nov. 12.
Ahead of the event, analysts expect HD to report a profit of $3.64 per share on a diluted basis, down 4.5% from $3.81 per share in the year-ago quarter. The company has consistently surpassed Wall Street’s EPS estimates in its last four quarterly reports.
For the full year, analysts expect HD to report EPS of $15.01, down marginally from $15.11 in fiscal 2024. However, its EPS is expected to rise 3.7% year over year to $15.56 in fiscal 2026.
HD stock has outperformed the S&P 500’s ($SPX) 38.5% gains over the past 52 weeks, with shares up 40.3% during this period. Similarly, it outperformed the Consumer Discretionary Select Sector SPDR Fund’s (XLY)30% gains over the same time frame.
Home Depot's strong performance has been fueled by increased investor optimism. Recent interest rate-cuts may further stimulate consumer demand, housing market expansion, and drive continued growth for the retailer.
On Aug. 13, HD shares closed up more than 1% after reporting its Q2 results. Its adjusted EPS of $4.67 exceeded Wall Street expectations of $4.54. The company’s revenue was $43.2 billion, topping Wall Street forecasts of $42.6 billion.
Analysts’ consensus opinion on HD stock is bullish, with a “Strong Buy” rating overall. Out of 34 analysts covering the stock, 25 advise a “Strong Buy” rating, one suggests a “Moderate Buy” rating, and eight give a “Hold.” HD’s average analyst price target is $405.87, indicating a potential upside of 1% from the current levels.
On the date of publication, Neha Panjwani 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.
