Navigating Home Depot’s Mixed Results: What to Watch in Today’s Dow Jones Forecast
Dow Jones Forecast: Home Depot Shares Drop Pre-Market — Key Factors for Traders to Watch
By James Hyerczyk | Updated August 19, 2025, 12:35 GMT+00:00
Home Depot (HD) shares fell about 1.8% in pre-market trade. The stock settled near $387.53 after the company released earnings that did not meet Wall Street expectations for a second quarter in a row. Home Depot missed its earnings and revenue goals but kept its full-year forecast. The firm now shows a firm pressure amid hard times in housing. Traders and investors now watch the stock and each new detail of the company to learn what might come.
Earnings and Revenue Miss for Second Straight Quarter
In its fiscal second quarter, Home Depot posted adjusted earnings per share (EPS) of $4.68, which came in just below the expected $4.71. Its revenue reached $45.28 billion, a bit under the expected $45.36 billion mark. The numbers fell short but still marked almost a 5% rise in revenue from last year.
Store sales, an important measure, grew by 1.0% around the world and 1.4% in the U.S. This rise was the second year-over-year uptick in the last eleven quarters. July saw more strength with sales up by 3.3%, hinting at late-quarter improvement despite overall challenges. This quarter is the first time since 2014 that the firm has missed earnings and revenue targets in the same period. This shortfall may affect how investors see the stock.
Shift Toward Professional Customers Drives Strategy
Home Depot now faces hard times in its do-it-yourself (DIY) area. Homeowners hesitate to start large projects, showing what the company calls a “deferral mindset.” The firm now puts more care into its pro-customer area to balance the low DIY activity.
This change shows in its recent moves. The company bought SRS Distribution for $18.25 billion and plans to buy GMS for $4.3 billion. Both firms sell to trade professionals. CFO Richard McPhail said that pro customers now make up about 55% of the store’s total sales. The focus on the pro market now helps the firm be more steady as store sales by regular customers stay low.
Margins and Pricing Power Under Scrutiny
The total count of customer deals dropped to 446.8 million from 451 million in the previous year’s quarter. At the same time, the average ticket size went up to $90.01. This change means Home Depot still holds some power to set prices in today’s market. The company has not passed new import tariffs to its buyers because most shipments came before these duties began.
Investors will now keep a keen eye on how tariff strains and rising costs may affect margins in future quarters—especially if talks on tariffs slow or new duties come in.
Technical Outlook: Support and Resistance Levels
On a chart, Home Depot’s stock now moves back toward key support marks. The first support lies around $382.92 to $376.81. This range meets the 200-day moving average and sits in the middle of the June to August trade range. If the stock drops below this zone, it may test further support near the 100-day moving average, about $372.30. On the up side, resistance seems to live near $402.79 to $407.82. Given the mixed quarter and the need to balance the growth in the pro area with the missed estimates, the stock may now trade in this range for a while.
Bottom Line: Cautious Optimism Amid Mixed Results
Home Depot’s shift to focus on trade professionals fits the current housing market. Still, missing the earnings and revenue targets shakes some confidence. With regular sales showing some growth and the average ticket size up, some investors may see the lower share price as a chance to buy.
For now, until the housing market or mortgage rates change a lot, the stock may not see a strong rise. Traders should keep a close watch on how margins, tariff effects, and pro-customer growth shape the stock’s path in the coming months.
About the Author:
James Hyerczyk is a U.S.-based technical analyst and teacher. He holds more than 40 years of experience in market analysis and trade. He has written two books on technical study and follows both futures and stock markets closely.
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Disclaimer: The material above is for information and teaching only. It should not be seen as financial advice. Investors should do their own study or talk with a financial advisor before any trade decisions.
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