Home Depot Earnings Set Stage for Housing Recovery Hopes

Home Depot is set to report its second-quarter earnings on Tuesday, and investors are looking for signs that the home improvement downturn is finally bottoming out. Analysts expect earnings of about $4.73 per share, up roughly 1% from a year ago, on revenue near $47.2 billion.

Traders on Kalshi are betting on which words executives will and won't say during the call, with 'Mexico' and 'Tariff' topping the board at 89%. This is not surprising given that Home Depot has run stores in Mexico for over two decades and has mentioned tariffs as a pressure point.

Another key area of focus will be on comparable sales growth. Management said last quarter that customers were still deferring large discretionary projects, while full-year guidance calls for flat to 2% growth. A stronger-than-expected comp print could indicate that customers are returning to bigger projects.