Home Depot Earnings Preview: Results Under Pressure From Housing Slowdown, Tariffs | Investing.com

Demand for home-improvement merchandise is carefully aligned with housing-market fundamentals. As a result of many householders renovate previous to itemizing a property or quickly after buy, the present stagnation within the housing market has adversely affected The Residence Depot (NYSE:). The corporate’s gross sales progress has been lackluster for a number of years, and the second quarter is unlikely to diverge from this development.

Key Highlights:

• Foot-traffic information from Placer.ai present Residence Depot retailer visits fell 2.2% yr over yr within the second quarter.
• FactSet consensus estimates same-store gross sales will rise 1.3% for the quarter—an enchancment from a 0.3% decline within the April quarter, however nonetheless under the extent that will point out a sustained restoration in house enchancment.
• Analysts forecast that Residence Depot will report adjusted second-quarter earnings of $4.72 per share on $45.4 billion in gross sales in keeping with FactSet consensus estimates.
• In line with bank card buy information from Affinity Options, Residence Depot gross sales remained roughly flat year-over-year in Could and July, whereas experiencing a 3% decline in June.
• An analyst from Stifel reaffirmed a ’purchase’ ranking for Residence Depot, elevating the value goal from $425.00 to $432.00. Previous to this replace, Residence Depot held 25 purchase rankings, 11 maintain rankings, and 1 promote ranking.

HD Q2 2025 earnings earlier than market at 6:00 AM Tuesday August 19, 2025

Technical Evaluation Perspective

• Residence Depot broke by means of a declining development line from 439.37, recorded in November 2024.
• The inventory declined to 326.31 in early April 2025, forming a weekly hammer-like candlestick, indicating potential bullish sentiment.
• The candlestick sample suggests a technical bullish bias.
• The inventory rebounded strongly, surpassing 380–390 resistance, reaching a excessive of 407.82 final week.
• Submit-earnings, HD might retrace to 387–386 to check the falling trendline.
• A sustained maintain above 387–386 may goal a transfer increased towards 415, with potential to achieve 420–425, presumably filling a gap worth hole from November 2024 after the US elections.
• Conversely, failure to carry 387–386, adopted by a drop under 379, would invalidate the bullish outlook, presumably sending the value decrease to help zones round 350–340.

Weekly Candlestick Chart

HD Seasonality Chart

Since 2006, Residence Depot has skilled a median enhance of two.6% in August, with optimistic efficiency in 55% of these years, and a median rise of 0.6% in September, occurring in 47% of years.

***

Be sure you try all of the market-beating options InvestingPro gives.

InvestingPro members can unlock a strong suite of instruments designed to help smarter, quicker investing selections, like the next:

ProPicks AI

Constructed on 25+ years of monetary information, ProPicks AI makes use of a machine-learning mannequin to identify high-potential shares utilizing each industry-recognized metric identified to the large funds {and professional} buyers. Up to date month-to-month, every choose features a clear rationale.

Truthful Worth Rating

The InvestingPro Truthful Worth mannequin provides you a transparent, data-backed reply. By combining insights from as much as 15 industry-recognized valuation fashions, it delivers a professional-grade estimate of what any inventory is actually price.

WarrenAI

WarrenAI is our generative AI educated particularly for the monetary markets. As a Professional consumer, you get 500 prompts every month. Free customers get 10 prompts.

Monetary Well being Rating

The Monetary Well being Rating is a single, data-driven quantity that displays an organization’s total monetary power.

Market’s High Inventory Screener

The superior inventory screener options 167 personalized metrics to search out exactly what you’re on the lookout for, plus pre-defined screens like Dividend Champions and Blue-Chip Bargains.

Every of those instruments is designed to avoid wasting you time and enhance your investing edge.

Not a Professional member but? Try our plans right here or by clicking on the banner under. InvestingPro is at present out there at as much as 50% off amid the limited-time summer season sale.

Ali Service provider is a seasoned monetary market skilled with experience in Technical Evaluation, Treasury & Capital Markets, Buying and selling, Gross sales, Analysis, Coaching, Fund & Relationship Administration, Fintech, and Digitalization. He’s a CMT constitution holder and an energetic member of CMT Affiliation, USA, American Affiliation of Skilled Technical Analysts, and CMT Affiliation of Canada. He has labored on numerous roles and organizations in North America and the GCC, reminiscent of ABN Amro financial institution, Thomson Reuters, Refinitiv, MAK Allen & Day Capital Companions, and Bridge Info Programs.

He’s the founding father of TwT Learnings, offers monetary market coaching.

https://twtlearning.com/ (Checkout Testimonials)

https://x.com/twtlearning

https://www.youtube.com/@twtlearning

Electronic mail us: [email protected]

https://www.investing.com/members/contributors/263388641/opinion