Core Viewpoint - The Home Depot, Inc. is set to release its Q4 results on February 24, with shares having increased over 10% year-to-date in 2026 [1] Group 1 - The Home Depot's stock has had a positive performance, showing a year-to-date increase of over 10% [1]

Earnings Reports - A variety of companies are set to announce quarterly results, including Domino's Pizza, C3.ai, Dell Technologies, Home Depot, Nvidia, Salesforce, and others [2] Economic Data Releases - Key economic data to be released includes factory orders, the S&P Case-Shiller home price index, wholesale inventories, consumer confidence data, and the producer price index (PPI) for January [3][4] Federal Reserve Speeches - Several Federal Reserve officials, including Christopher Waller, Austan Goolsbee, Raphael Bostic, and Lisa Cook, are scheduled to deliver speeches throughout the week [3]

Core Insights - Home Depot and Lowe's are leading companies in the U.S. home improvement sector, each adopting unique strategies to capture market share amid cautious consumer spending and slower housing turnover [1][4]. Company Overview - Home Depot has a market capitalization of approximately $381.8 billion and operates over 2,300 stores across the U.S., Canada, and Mexico, focusing on professional customers and maintaining strong supplier relationships [2]. - Lowe's, valued at around $158.3 billion, operates more than 1,700 stores primarily in the U.S. and is enhancing its execution through improved merchandising and a "total home" strategy [3]. Strategic Initiatives - Home Depot is expanding its Pro ecosystem through platforms like SRS and GMS, which enhance its reach into specialty building materials and facilitate cross-selling opportunities [5]. - The introduction of AI-powered tools at Home Depot aims to streamline project planning for professional contractors, significantly improving efficiency in material estimation [6][7]. - Lowe's "Total Home" strategy integrates specialized services and a robust digital infrastructure, positioning the company as a comprehensive solution provider for both professionals and DIY homeowners [12]. Market Positioning - Home Depot's focus on professional contractors and advanced technology reinforces its competitive edge, while its exclusive brands and curated assortments enhance customer loyalty [8]. - Lowe's expansion into the high-value Professional market through acquisitions, such as Foundation Building Materials, strengthens its product portfolio and distribution capabilities [13]. Financial Performance Estimates - Home Depot's current fiscal year sales are projected to increase by 3.3%, but EPS is expected to decline by 4.9%. For the next fiscal year, sales are estimated to rise by 4.2% with a 4.3% growth in earnings [17]. - Lowe's current financial-year sales and EPS are expected to grow by 2.9% and 2.2%, respectively, with an anticipated 8.6% rise in sales and 6.3% growth in earnings for the next fiscal year [20]. Stock Performance - Year-to-date, Home Depot shares have increased by 11.4%, while Lowe's shares have risen by 17% [24]. - Home Depot's forward P/E ratio is 25.23, compared to Lowe's 21.55, indicating differing valuations in the market [25]. Investment Outlook - Both companies are enhancing their Pro capabilities and leveraging technology, but Home Depot is currently viewed as better positioned for investors due to its broader scale and advanced digital tools [26].

In its upcoming report, Home Depot (HD) is predicted by Wall Street analysts to post quarterly earnings of $2.51 per share, reflecting a decline of 19.8% compared to the same period last year. Revenues are forecasted to be $38.25 billion, representing a year-over-year decrease of 3.7%.Over the last 30 days, there has been a downward revision of 0.2% in the consensus EPS estimate for the quarter, leading to its current level. This signifies the covering analysts' collective reconsideration of their initial f ...

Company Overview - The Home Depot, Inc. (NYSE:HD) is one of the largest home improvement retailers globally [2] - The company's shares have decreased by 5.3% over the past year but have increased by 10.5% year-to-date [2] Analyst Ratings and Price Targets - Truist raised the share price target for The Home Depot to $405 from $390 while maintaining a Buy rating [2] - TD Cowen also increased the price target to $450 from $410 and included the company in its top ideas for hardlines, ranking it second after Planet Fitness [2] Investment Sentiment - Jim Cramer expressed confidence in The Home Depot, stating that he purchased shares for a charitable trust despite initial skepticism from others [3] - There is a belief that while The Home Depot has potential, some AI stocks may offer higher returns with limited downside risk [3]

Core Viewpoint - Home Depot is expected to report a decline in both revenues and earnings for the fourth quarter of fiscal 2025, with revenues projected at $38.25 billion, a decrease of 3.7% year over year, and earnings per share (EPS) estimated at $2.51, down 19.8% from the previous year [1][2]. Financial Performance Expectations - The Zacks Consensus Estimate for fiscal 2025 revenues is $164.7 billion, indicating a growth of 3.3% year over year, while the EPS is expected to decline by 4.9% to $14.50 [3]. - Home Depot has a trailing four-quarter average negative earnings surprise of 0.09%, with a negative surprise of 1.8% in the last reported quarter [4]. Earnings Predictions - The company has a positive Earnings ESP of +5.61% and a Zacks Rank of 3 (Hold), suggesting a potential earnings beat [5]. - Management anticipates a 3% year-over-year sales increase, driven by a $2 billion contribution from the acquisition of GMS Inc. [9]. Strategic Initiatives - Home Depot is focused on enhancing its interconnected shopping experience and expanding its Pro wallet share, despite facing economic uncertainty and high-interest rates [7]. - The "One Home Depot" investment plan aims to improve supply-chain facilities, technology, and digital experiences, which are crucial for growth [8]. Market Challenges - The company is experiencing challenges with big-ticket discretionary projects due to high-interest rates and a lack of storm activity, which has negatively impacted sales in key departments [11][12]. - Management expects continued pressure in the fourth quarter from the absence of major storm activity and ongoing consumer uncertainty [14]. Margin and Profitability Outlook - For fiscal 2025, Home Depot expects a gross margin of 33.2% and an operating margin of 12.6%, with EPS anticipated to decline by 6% year over year [15]. - The gross margin for the fourth quarter is predicted to contract to 32.3%, with an adjusted operating margin expected to decline to 10.3% [16]. Stock Performance and Valuation - Home Depot's shares have increased by 14.5% over the past three months, underperforming compared to the industry average of 17.6% [17]. - The stock currently trades at a forward P/E multiple of 25.2X, above the industry average of 23.52X, indicating a premium valuation [20]. Long-term Outlook - Despite short-term headwinds, Home Depot's market leadership and strategic investments position it well for long-term value creation as home-improvement demand normalizes [26]. - The company is well-equipped to capture opportunities as professional project activity rebounds, supported by its integrated model and digital capabilities [25].

Core Insights - The upcoming earnings releases from major Retail-Wholesale players are expected to shape near-term market sentiment, with modest growth anticipated in sales and earnings following the holiday shopping season [1] - The sector is projected to achieve fourth-quarter revenue growth of 6.7% year over year, while earnings are expected to rise by 3.5%, indicating a slowdown from previous growth rates [2] Group 1: Earnings Trends - Consumer spending trends significantly influenced retail performance during the holiday season, with December retail sales unchanged month over month, reflecting a slowdown from November's 0.6% gain [4] - Year-over-year retail sales increased by 2.4% in December and 3.3% in November, indicating some resilience despite the month-over-month stagnation [4] - The slowdown in consumer spending is attributed to moderating job growth, policy uncertainty, and elevated household cost pressures, leading consumers to prioritize essentials and seek discounts [5] Group 2: Margin Pressures - Inflation trends, although moderating, continue to impact consumer budgets and retailers' cost structures, exerting pressure on margins for those unable to pass on higher costs [6] - Retailers with strong pricing power and efficient supply-chain management are better positioned to protect profitability amid these challenges [6] Group 3: E-commerce and Inventory Management - E-commerce and omnichannel execution are critical differentiators, with retailers that integrate digital and physical channels effectively capturing demand during peak shopping periods [7] - Inventory discipline is vital for profitability, with retailers using advanced analytics to align stock levels with demand, thus avoiding excessive markdowns [8] Group 4: Company-Specific Insights - **Dollar General**: Positioned well with a Zacks Rank 2 and an Earnings ESP of +16.26%, supported by market share gains and strategic initiatives like "Project Elevate" [10][11] - **Walmart**: Holds a Zacks Rank 3 and an Earnings ESP of +1.31%, leveraging e-commerce momentum and a commitment to low prices, with a stable earnings estimate suggesting a 10.6% year-over-year increase [14][15] - **Home Depot**: Also a Zacks Rank 3 with an Earnings ESP of +5.61%, focusing on professional contractors and utilizing AI tools to enhance project planning [16][17] - **Dollar Tree**: With a Zacks Rank 3 and an Earnings ESP of +1.63%, the company is enhancing its value proposition and operational discipline following the decision to move forward without the Family Dollar brand [18][19][20]

Group 1 - Bernstein raised the target price for Lowe's Companies from $284 to $313 [1] - Bernstein increased the target price for Home Depot from $362 to $381 [1]

Company Overview - Costco Wholesale is projected to achieve $270 billion in net sales for fiscal 2025, positioning it as a leading player in the general merchandise retail sector [1] - Home Depot's share price has increased by 41% over the past five years, contrasting with Costco's total return of 199% during the same period [1] Performance Analysis - Costco consistently reports same-store sales growth, including a 7.7% increase during fiscal 2020 despite the COVID-19 pandemic, indicating stable demand regardless of macroeconomic conditions [2] - Home Depot experienced double-digit revenue growth during the pandemic years but has faced a decline in demand in recent years, with only a 0.2% increase in same-store sales in the third quarter of fiscal 2025 [6][7] Business Model and Strategy - Costco's value proposition lies in offering high-quality goods at low prices, supported by its large scale which allows for favorable procurement costs, fostering customer loyalty [3] - The membership model is crucial for Costco, with a 5.2% year-over-year increase in membership base to 81.4 million and a renewal rate of 89.7%, providing a recurring and high-margin revenue stream [4] Growth Potential - Costco operates 921 warehouses and aims to open 30 new locations annually, indicating significant growth opportunities both domestically and internationally [5] - The company's net income has grown at a compound annual rate of 11.4% over the past five years, which supports regular payouts and special dividends [5]

Core Insights - Home Depot's shares have increased by 17% over the past three months, underperforming the Zacks Retail - Home Furnishings industry's growth of 18.8% but outperforming the Retail-Wholesale sector's return of 3.7% and the S&P 500's rally of 4.1% during the same period [1][6] - The stock is currently trading at $391.05, which is 8.4% below its 52-week high of $426.75 reached in September [1][2] Performance Comparison - Home Depot has lagged behind key peers such as Lowe's Companies Inc. (31.5%), Williams-Sonoma, Inc. (19.1%), and Floor & Decor Holdings, Inc. (21%) over the past three months [2][6] - The stock is trading above its 50-day and 200-day simple moving averages, indicating a favorable technical setup [2][3] Growth Strategy - Home Depot is focusing on expanding its Pro ecosystem and enhancing digital tools, including AI-powered blueprint takeoffs, to drive growth [6][7] - The company is deepening relationships with professional contractors by combining retail scale with wholesale distribution expertise, enhancing cross-selling opportunities [8] Digital Innovation - The AI-powered blueprint takeoffs tool improves planning efficiency by analyzing construction plans and generating material estimates quickly [9] - Investments in fulfillment and operational efficiency are aimed at enhancing customer experience through faster delivery and improved inventory visibility [10] Financial Overview - In Q3 of fiscal 2025, Home Depot invested approximately $900 million in capital expenditures, with a full-year capex projected at 2.5% of sales [11] - The Zacks Consensus Estimate projects a 3.3% year-over-year increase in sales and a 4.9% decline in EPS for the current fiscal year [12] Market Challenges - Home Depot faces downward estimate revisions due to pressures in the home improvement environment, particularly for larger discretionary projects [15] - High interest rates and subdued housing turnover are impacting customer demand for big-ticket remodels, while smaller projects remain stable [15] Valuation Analysis - The company is currently trading at a forward 12-month P/E multiple of 25.74, which is above the industry's average of 23.53 and the sector's 24.19, suggesting that Home Depot may be overvalued [18][20] - Compared to peers, Home Depot trades at a premium to Lowe's and Williams-Sonoma but at a discount to Floor & Decor Holdings [20] Investment Outlook - Home Depot's structural strengths through Pro expansion and digital investments support its long-term growth outlook [21] - However, the stock's premium valuation and slower earnings momentum limit near-term upside potential, suggesting that maintaining existing positions may be prudent while new investors might wait for clearer demand improvement [22]