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Why Home Depot (HD) Stock Is Climbing Today

Home Depot (HD) is advancing 4% after the home-improvement retailer reported stronger-than-expected fourth quarter results and noted that its comparable-store sales had risen nearly 1% versus Q4 of 2023. Moreover, HD increased its dividend.

The Highlights of HD’s Q4 Results and Its Guidance

The firm’s Q4 revenue jumped 14% versus the same period a year earlier to $39.7 billion, $630 million higher than analysts’ average estimate. Its earnings per share climbed to $3.02 from $2.83 in Q4 of 2023. Its adjusted EPS for last quarter was $3.13.  Analysts on average had estimated that the company’s EPS for Q4 of 2024 would come in at $3.04.

ThreeRivers11 / Shutterstock.com

Home Depot’s sales at comparable stores rose 0.8% year-over-year last quarter.

HD expects its revenue to increase 2.8% this year, below analysts’ average outlook of a 3.36% gain. HD expects its comparable sales to increase 1% this year, but it predicts that its EPS will fall 3%.

HD’s Dividend Increase and Its Comments

Home Depot increased its dividend by 2.2% to $2.30 per share.

“Our fourth quarter results exceeded our expectations as we saw greater engagement in home improvement spend, despite ongoing pressure on large remodeling projects,” CEO Ted Decker said in a statement.

The Recent Price Action of HD Stock

In the last month, the shares fell 4.7%, while they have retreated 7% in the last three months. However, it has risen 2.6% so far in 2025.

While we acknowledge the potential of HD, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns, and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than HD but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.

READ ALSO 8 Best Wide Moat Stocks to Buy Now and 30 Most Important AI Stocks According to BlackRock

Disclosure: None. This article is originally published at Insider Monkey

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Dr. Ian Dogan

Co-Founder and Research Director at Insider Monkey

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Dr. Ian Dogan

Co-Founder and Research Director at Insider Monkey

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