Home Depot (HD) is the world’s largest home improvement retailer with over 2,300 stores in the US, Canada, and Mexico. Despite a recent stock pullback, caution is advised until earnings on November 13th. Q3 earnings missed estimates, with revenue slightly above expectations. EPS outlook was lowered for the year.

Founded in 1978, Home Depot has 470,000 employees and serves DIY homeowners, professionals, and contractors. Q3 earnings per share missed estimates at $3.74, with revenue at $41.4 billion. Comparable sales were flat, with a slight increase in total U.S. same-store sales. Full-year EPS outlook was reduced to around $14.02.

Home Depot’s stock faced pressure after earnings as estimates were cut across the board. Current quarter estimates fell 11%, with next quarter also weakening by 4%. Estimates for the current year dropped by 2% to $14.64, with next year seeing a nearly 5% decrease over the last 90 days.

Technical analysis shows Home Depot’s stock trading near 2024 lows but bouncing back 9% off the recent bottom. The stock may face further pressure if support levels fail, potentially dropping below $300. Investors should monitor key resistance levels for potential selling opportunities.

Home Depot faces challenges from slower housing activity and cautious consumers, with recent EPS misses and downward estimate revisions. While digital sales and professional customer initiatives offer support, caution is advised. Investors interested in home furnishings may consider FGI Industries, a Zacks Rank #1 (Strong Buy) stock breaking above previous highs.

Read more at Nasdaq: Bear of the Day: Home Depot (HD)