Home improvement retailer Home Depot (HD) is scheduled to announce its results for the second quarter of Fiscal 2025 on Tuesday, August 19. HD stock has risen 3% year-to-date, underperforming the broader market. The housing market has been under pressure due to elevated interest rates and high inflation. Wall Street expects Home Depot to report adjusted earnings per share (EPS) of $4.72 for Q2 FY25, reflecting a 1.1% year-over-year growth.
Elevate Your Investing Strategy:
- Take advantage of TipRanks Premium at 50% off! Unlock powerful investing tools, advanced data, and expert analyst insights to help you invest with confidence.
Sales are estimated to rise 5.2% to $45.42 billion compared to the prior-year quarter.
Home Depot has been facing challenges due to high interest rates, elevated home prices, and the impact of macro pressures and tariff tensions on consumer spending. In Q1 2025, HD’s comparable sales declined by 0.3% year-over-year.
Analysts’ Views Ahead of Home Depot’s Q2 Earnings
Heading into Q2 results, Piper Sandler analyst Peter Keith reiterated a Buy rating on Home Depot stock, but lowered the price target to $408 from $418. Keith has a positive outlook on Home Depot and rival Lowe’s (LOW) for the remainder of 2025, given a “high probability of an improved housing backdrop” and the possibility of multiple Federal Reserve rate cuts.
Meanwhile, Truist Securities analyst Scot Ciccarelli increased the price target for Home Depot stock to $433 from $417 and reaffirmed a Buy rating. While the macro environment remains dynamic, the 5-star analyst believes that Home Depot is well-positioned to continue to win market share in virtually any home improvement environment.
Ciccarelli thinks that the company is capable of managing tariffs without having to resort to widespread price increases, thanks to its strong buying power and sourcing diversification. Overall, Ciccarelli is bullish on HD stock, given the company’s solid core business, upside from the Complex Pro offering, and pent-up demand.
AI Analyst Is Bullish on HD Stock Ahead of Q2 Print
Interestingly, TipRanks’ AI stock analyst has assigned an Outperform rating to Home Depot stock with a price target of $418, indicating about 5% upside potential. TipRanks’ AI analysis indicates that Home Depot maintains a solid financial position with strong profitability, although high leverage poses some risks. Moreover, the company’s technical indicators and valuation suggest a stable but cautious outlook.
Here’s What Options Traders Anticipate Ahead of HD’s Q2 Earnings
Using TipRanks’ Options tool, we can see what options traders are expecting from the stock immediately after its earnings report. The expected earnings move is determined by calculating the at-the-money straddle of the options closest to expiration after the earnings announcement. If this sounds complicated, don’t worry, the Options tool does this for you.
Indeed, it currently says that options traders are expecting about a 4.1% move in either direction in HD stock in reaction to Q2 results.
Is HD a Good Stock to Buy?
Overall, Wall Street has a Strong Buy consensus rating on Home Depot stock based on 19 Buys and six Holds. The average HD stock price target of $429.53 indicates 7.6% upside potential from current levels.
Source link
