Home Depot Stock Falls Ahead Of Q4 Earnings As Low Builder Sentiment, Macro Uncertainty Weigh: Retail Sentiment Downbeat

Sentiment on Stocktwits turned ‘bearish’ from ‘neutral’ a week ago.

Shares of the Home Depot (HD) fell more than 1% after-hours on Monday ahead of the home improvement giant’s fourth-quarter earnings, with retail sentiment turning downbeat.

Wall Street analysts expect Home Depot to post earnings per share of $3.04 on revenue of $39.15 billion. The company has beaten EPS estimates four times in the past four quarters.

The earnings will be watched for cues on the larger home-building market. According to Investopedia, eight of the 11 analysts following the company have ‘buy’ or equivalent ratings, and three had "hold" ratings, with the average price target of $433.

According to the National Association of Home Builders and Wells Fargo Housing Market Index, builder sentiment took a hit in February over concerns about tariffs and high mortgage rates, the Fly reported.

“While builders hold out hope for pro-development policies, particularly for regulatory reform, policy uncertainty and cost factors created a reset for 2025 expectations in the most recent HMI," NAHB Chairman Carl Harris was quoted as saying. "Uncertainty on the tariff front helped push builders' expectations for future sales volume down to the lowest level since December 2023.”

Sentiment on Stocktwits turned ‘bearish’ from ‘neutral’ a week ago. Message volume rose to ‘extremely high’ from ‘normal.

One bullish commenter said the company was standing on strong support.

In November, Home Depot adjusted its fiscal 2024 outlook, narrowing its expected adjusted EPS decline to 1% from a prior range of a 1%-3% decline, according to the Fly.

The company also raised its full-year revenue growth forecast to 4% from 2.5%-3.5% and improved its comparable sales outlook to a 2.5% decline from a previous estimate of a 3%-4% drop.

Home Depot stock is down 1.69% year-to-date.

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