The Home Depot Stock Price and Forecast: HD earnings preview

Home Depot releases earnings before the open on Tuesday.
HD and Walmart both release earnings today.
Home Depot is a clear sign of consumer sentiment in the US.

Update: Home Depot announced earnings before the open with a strong beat on the top and bottom lines. Earnings per shares came in at $3.92 versus the $3.40 forecast, and revenue was $36.8 billion versus the forecast of $34.96 billion. The shares initially spiked up over 1% on the release but have since retraced. The latest Home Depot (HD) stock quote is $371.62, a small gain of 0.15%.

The Home Depot (HD) earnings will be out before the open on Tuesday along with those of Walmart (WMT). They will be closely watched for signs of how healthy US consumer spending is. The stock market looked a bit cagey on Monday as higher yields hit tech stocks, and now at the tail end of the earnings season we get some key last minute barometers of the economy.

Home Depot (HD) stock news

We do not have an exact time for the earnings release, but it is due before the market opens. The post-earnings conference call is scheduled for 9am EST/2pm GMT so that should give a fairly close indication of when earnings will drop. The link for the conference call can be found here. Q3 adjusted earnings per share (EPS) is expected to come in at $3.40, while revenue is expected to reach $34.96 billion, an increase of 4.3% from the same period last year. Reuters notes that HD has matched or beaten estimates for every quarter back to 2016 with the exception of the pandemic's Q1 2020.

The usual focus will be on supply chain issues and input costs and whether these can be passed on to consumers. Supply chain issues have seen Walmart, Home Depot and others charter their own ships to deal with supply chain slowdowns caused by the pandemic. While container prices have dropped recently, they are still well above 2020 levels and are a significant cost for retailers.

HD stock's dividend yield is currently about 1.8%, and investors will look for any change in this. Given the slowing sales figures, we do not anticipate a change.

Piper Sandler has put through a modest price target increase for HD stock ahead of the earnings report, bumping its target up from $320 to $325.

Home Depot (HD) stock forecast

In our view, this one is set up for a disappointment. Home Depot stock has rallied sharply into the number, and usually it is a case of "buy the rumour, sell the fact" when that happens. The stock sits at record highs. Below $365 there is a volume vacuum, so a break here could see a sharp move to $330. Strong support then from $330 to $320 with a high volume profile and the 200-day moving average just at $320.

HD 1-day chart

Share: Feed news

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.

If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.

FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.

The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.