GET DAILY SIGNALSHome Depot beats on EPS, misses on revenue, and cut its forecast
When companies report earnings, expectations mean everything. In the case of home improvement retailer Home Depot (NYSE: HD), expectations must not have been too high. The company beat on its EPS estimates with actual earnings of $3.17 versus estimates of $3.08. While that is good news, the company missed on its revenue estimate and it issued a lower revenue forecast for 2019 as a whole. Normally, beating EPS estimates by a small margin, missing on revenue estimates and issuing a more cautious outlook would send a stock down. But that wasn’t the case for Home Depot on Tuesday. The stock gained 4.65% on the day while the overall market was lower.
From a fundamental perspective, Home Depot has been pretty solid over the last few years. The company has been able to grow earnings at a rate of 22% per year over the last three years. The profit margin is also solid at 13.7%. The operating margin is at 14.59% and return on assets is at 20.36%. The return on equity wasn’t available at the time of this writing due to the recent earnings report.
One of the things that helped Home Depot move higher was a share buyback program that reduced the number of shares outstanding dramatically.
The Tickeron SMR rating for this company is 2, indicating very strong sales and a profitable business model. SMR (Sales, Margin, Return on Equity) rating is based on comparative analysis of weighted Sales, Income Margin and Return on Equity values compared against S&P 500 index constituents.
The Tickeron Valuation Rating of 5 indicates that the company is seriously undervalued in the industry. A rating of 1 points to the most undervalued stocks, while a rating of 100 points to the most overvalued stocks. This rating compares market capitalization estimated by our proprietary formula with the current market capitalization. The stock’s price-to-book ratio is below average for the industry and its P/E ratio is also below average.
The Tickeron Profit vs. Risk rating for this company is 17, indicating a risk-aware approach on strong performance. The average Profit vs. Risk rating for the industry is 62, placing this stock better than average.
The chart for Home Depot shows the stock trending higher within a trend channel over the last eight months. The upper rail connects the highs from November and April. The lower rail connects the lows from December, May, and now August.
The daily stochastic readings were in oversold territory just ahead of the earnings report and turned sharply higher after the report.
The weekly chart shows that the stock is approaching an all-time high while the overbought/oversold indicators are not yet in overbought territory, but are closing in on those levels.
Sentiment toward Home Depot is a little more bearish than the average stock. There are 32 analysts following the stock with 20 “buy” ratings, 11 “hold” ratings, and one “sell” rating. This puts the overall buy percentage at 62.5% and that is slightly below the average range of 65% to 75%.
The short interest ratio is currently at 3.54 and is also slightly above average. The total number of shares sold short had been creeping up ahead of the earnings report and that is an indication of increasing pessimism.
The overall picture for Home Depot is rather positive with the solid fundamentals, the solid upward trend in the price, and the slightly more pessimistic sentiment toward the stock. Of course the lowered forecast is a bit of a concern and the company cited the tariffs on Chinese goods as part of the issue. The company also cited falling lumber prices for the lowered sales forecast.
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Harry Richardson — Algorithmic Trader & Strategy Developer Harry is an algorithmic trader specializing in impulse and breakout trading strategies across cryptocurrency and equity markets. With more than 10 years of experience in developing automated trading systems, he focuses on building structured algorithms designed to capture momentum while maintaining strict risk control. His approach combines quantitative analysis, real-market execution, and continuous performance monitoring. Vitalii prioritizes risk management, drawdown control, and strategy stability over short-term optimization, ensuring algorithms are adaptable to changing market conditions. He has developed and tested hundreds of automated strategies, working extensively with live trading environments, forward testing, and portfolio-level algorithm management. His work centers on transforming trading ideas into fully operational, scalable automated systems.
HD in upward trend: 10-day moving average broke above 50-day moving average on October 26, 2026
The 10-day moving average for HD crossed bullishly above the 50-day moving average on October 26, 2026. This indicates that the trend has shifted higher and could be considered a buy signal. In 12 of 15 past instances when the 10-day crossed above the 50-day, the stock continued to move higher over the following month. The odds of a continued upward trend are 80%.
Technical Analysis (Indicators)
Bullish Trend Analysis
The Momentum Indicator moved above the 0 level on October 12, 2026. You may want to consider a long position or call options on HD as a result. In 43 of 71 past instances where the momentum indicator moved above 0, the stock continued to climb. The odds of a continued upward trend are 61%.
The Moving Average Convergence Divergence (MACD) for HD just turned positive on October 07, 2026. Looking at past instances where HD's MACD turned positive, the stock continued to rise in 27 of 44 cases over the following month. The odds of a continued upward trend are 61%.
HD moved above its 50-day moving average on October 20, 2026 date and that indicates a change from a downward trend to an upward trend.
Following a +1.77% 3-day Advance, the price is estimated to grow further. Considering data from situations where HD advanced for three days, in 195 of 310 cases, the price rose further within the following month. The odds of a continued upward trend are 63%.
The Aroon Indicator entered an Uptrend today. In 135 of 251 cases where HD Aroon's Indicator entered an Uptrend, the price rose further within the following month. The odds of a continued Uptrend are 54%.
Bearish Trend Analysis
The RSI Indicator demonstrated that the stock has entered the overbought zone. This may point to a price pull-back soon.
The Stochastic Oscillator demonstrated that the ticker has stayed in the overbought zone for 13 days. The longer the ticker stays in the overbought zone, the sooner a price pull-back is expected.
Following a 3-day decline, the stock is projected to fall further. Considering past instances where HD declined for three days, the price rose further in 50 of 62 cases within the following month. The odds of a continued downward trend are 60%.
HD broke above its upper Bollinger Band on October 22, 2026. This could be a sign that the stock is set to drop as the stock moves back below the upper band and toward the middle band. You may want to consider selling the stock or exploring put options.
Fundamental Analysis (Ratings)
The Tickeron SMR rating for this company is 14 (best 1 - 100 worst), indicating very strong sales and a profitable business model. SMR (Sales, Margin, Return on Equity) rating is based on comparative analysis of weighted Sales, Income Margin and Return on Equity values compared against S&P 500 index constituents. The weighted SMR value is a proprietary formula developed by Tickeron and represents an overall profitability measure for a stock.
The Tickeron Price Growth Rating for this company is 50 (best 1 - 100 worst), indicating steady price growth. HD’s price grows at a higher rate over the last 12 months as compared to S&P 500 index constituents.
The Tickeron Seasonality Score of 50 (best 1 - 100 worst) indicates that the company is fair valued in the industry. The Tickeron Seasonality score describes the variance of predictable price changes around the same period every calendar year. These changes can be tied to a specific month, quarter, holiday or vacation period, as well as a meteorological or growing season.
The Tickeron PE Growth Rating for this company is 63 (best 1 - 100 worst), pointing to consistent earnings growth. The PE Growth rating is based on a comparative analysis of stock PE ratio increase over the last 12 months compared against S&P 500 index constituents.
The Tickeron Profit vs. Risk Rating rating for this company is 79 (best 1 - 100 worst), indicating that the returns do not compensate for the risks. HD’s unstable profits reported over time resulted in significant Drawdowns within these last five years. A stable profit reduces stock drawdown and volatility. The average Profit vs. Risk Rating rating for the industry is 88, placing this stock better than average.
The Tickeron Valuation Rating of 90 (best 1 - 100 worst) indicates that the company is significantly overvalued in the industry. This rating compares market capitalization estimated by our proprietary formula with the current market capitalization. This rating is based on the following metrics, as compared to industry averages: HD's P/B Ratio (19.752) is slightly higher than the industry average of (1.576). P/E Ratio (22.990) is within average values for comparable stocks, (14.353). HD's Projected Growth (PEG Ratio) (2.446) is slightly higher than the industry average of (1.177). Dividend Yield (0.028) settles around the average of (0.223) among similar stocks. HD's P/S Ratio (1.781) is slightly higher than the industry average of (0.937).
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General Information
a retailer of assortment of building materials and home improvement products
Industry HomeImprovementChains
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