Is Home Depot (HD) a 'Buy' Ahead of Its Upcoming Earnings Announcement?

Home improvement retailer Home Depot HD is set to announce fourth-quarter earnings results before Tuesday’s opening bell. The company missed the earnings mark in three of the last four quarters. But with the stock showing renewed momentum this year, is HD a buy ahead of the release?

Find the latest EPS estimates and surprises on Zacks Earnings Calendar.

Analysts are expecting Home Depot to post earnings of $2.51 per share, reflecting a -19.8% decline versus the same quarter last year. Revenues are anticipated to drop -3.65% during the quarter to $38.25 billion. This outlook aligns with Home Depot's reaffirmed guidance for the latest fiscal year, which includes approximately 3% total sales growth and slightly positive comparable sales for the 52-week period.

Steady demand for essential repair and maintenance projects is supporting Home Depot’s business. The company continues to advance its integrated retail and omnichannel strategy with increasing investments in supply chain optimization and digital AI tools.

The Zacks Rank #3 (Hold) for HD suggests balanced expectations, bolstered by a positive Earnings ESP (Expected Surprise Prediction) of +5.61%, indicating potential for an upside surprise. Investors will watch closely for updates on professional customer trends and integration of recent acquisitions like GMS.

#1 Semiconductor Stock to Buy (Not NVDA)

The incredible demand for data is fueling the market's next digital gold rush. As data centers continue to be built and constantly upgraded, the companies that provide the hardware for these behemoths will become the NVIDIAs of tomorrow.

One under-the-radar chipmaker is uniquely positioned to take advantage of the next growth stage of this market. It specializes in semiconductor products that titans like NVIDIA don't build. It's just beginning to enter the spotlight, which is exactly where you want to be.

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

This article originally published on Zacks Investment Research (zacks.com).

Zacks Investment Research