Valued at a market cap of $354.8 billion, The Home Depot, Inc. (HD) is a leading home improvement retailer operating across the United States, Canada, and Mexico. It offers a wide range of home improvement products, installation services, and tool rentals, serving DIY homeowners, professional contractors, and property managers through its retail stores, distribution centers, and e-commerce platforms. 

The Atlanta, Georgia-based company is expected to announce its fiscal Q1 2025 earnings results before the market opens on Tuesday, May 20. Ahead of this event, analysts expect Home Depot to report an adjusted EPS of $3.59, down 1.1% from $3.63 in the year-ago quarter. However, the company has surpassed Wall Street's earnings estimates in the last four quarters.

For fiscal 2025, analysts expect the home improvement retail giant to report an adjusted EPS of $14.98, down 1.7% from $15.24 in fiscal 2024. Nevertheless, adjusted EPS is anticipated to rebound and grow 10.4% year-over-year to $16.54 in fiscal 2026.

Shares of HD have risen 6.5% over the past 52 weeks, lagging behind both the S&P 500 Index's ($SPX) 8.4% gain and the Consumer Discretionary Select Sector SPDR Fund's (XLY) 12.4% return over the period. 

Shares of Home Depot rose 2.8% on Feb. 25 after the company delivered strong Q4 2024 results, with revenue climbing 14.1% year-over-year to $39.7 billion, beating the consensus, aided by an extra operating week contributing about $2.5 billion. Adjusted EPS came in at $3.13, exceeding analysts’ estimates and rising 9.4%. U.S. comparable sales grew 1.3% and customer transactions increased 7.6% to 400 million, signaling improved consumer engagement and a successful omnichannel strategy.

Analysts' consensus view on Home Depot’s stock is bullish, with a "Strong Buy" rating overall. Among 37 analysts covering the stock, 27 recommend "Strong Buy," one suggests "Moderate Buy," eight indicate “Hold,” and one advises "Strong Sell." As of writing, HD is trading below the average analyst price target of $426.53.