Home Depot Stock Slips Premarket Ahead Of Q3 Report, Retail Traders Turn ‘Extremely Bullish’

Analysts expect a 2.3% rise in revenue and a 4.5% increase in adjusted EPS, although the near- to medium-term view for the business is not encouraging.

• Home Depot will report its third-quarter results before the markets open on Tuesday.
• Analysts expect a 2.3% rise in revenue and a 4.5% increase in adjusted EPS, although the near- to medium-term view for the business is not encouraging.
• Stocktwits sentiment for HD shifted up to ‘extremely bullish.’

Home Depot Inc.’s shares slipped 1% in early premarket trading on Tuesday, despite sentiment on Stocktwits edging higher ahead of the company’s quarterly results, due before the market opens.

Analysts expect the home improvement products retailer to report a 2.3% rise in third-quarter revenue to $41.12 billion, its slowest pace since the second quarter of last year, according to Koyfin. Adjusted EPS is expected to increase 4.5% to $3.83.

Notably, HD stock has declined in the last five sessions, and about 15.6% since its recent high on Sept. 11 amid a seemingly bearish outlook for the home improvement retail sector.

Stifle analysts downgraded the stock to ‘Hold’ from ‘Buy,’ a break from the majority analyst view, and price target to $370 from $440. They said the industry is "at best stagnant and potentially deteriorating."

However, on Stocktwits, the retail sentiment shifted to ‘extremely bullish as of early Tuesday, from ‘bullish’ the previous day.

A user posted trading data, showing that “whales dont look very bullish here.” A few others also discussed initiating buy positions, with some expressing a long-term outlook.

Home Depot rival Lowe's Companies, Inc. will report its quarterly results on Wednesday.

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