Home Depot, Inc. (NYSE:HD) shares are bouncing around Monday ahead of earnings later this week. The stock has been trending lower since the company’s last earnings report, down more than 8% over the past three months.

• HD is trading in a tight range. Get the complete picture here.

What To Know: Home Depot is set to report third-quarter earnings on Tuesday before the market opens. The company is expected to report earnings per share of $3.85 and revenue of $41.14 billion.

In the second quarter, the company reported earnings per share of $4.68, missing the consensus estimate of $4.71. In addition, Home Depot reported revenue of $45.28 billion, missing the consensus estimate of $45.36 billion. The home improvement retailer also reaffirmed full-year guidance of $163.98 billion, versus estimates of $164.30 billion

Analyst Changes: Ahead of the earnings report, multiple analysts have announced price target adjustments. Stifel characterized the home improvement space as "at best, stagnant and potentially deteriorating," adding that the near-term outlook is too tough for the firm to take a bullish stance. Here’s a look at recent analyst ratings on Home Depot.

• Stifel analyst W. Andrew Carter downgraded Home Depot from a Buy rating to a Hold rating and lowered the price target from $440 to $370.
• Telsey Advisory Group analyst Joseph Feldman maintained an Outperform rating on Home Depot with a price target of $455.
• Wells Fargo analyst Zachary Fadem maintained an Overweight rating on Home Depot and lowered the price target from $450 to $435.
• JPMorgan analyst Christopher Horvers maintained an Overweight rating on Home Depot and lowered the price target from $452 to $444.
• Truist Securities analyst Scot Ciccarelli maintained a Buy rating on Home Depot and lowered the price target from $454 to $421.
• Bernstein analyst Zhihan Ma maintained a Market Perform rating on Home Depot and raised the price target from $403 to $406.

The consensus price target for Home Depot is $431.85, with the highest price target at $497.00 and the lowest price target at $318.00.

HD Analysis: Home Depot stock is trading within its 52-week range of $326.31 to $439.37. Currently, Home Depot is experiencing a year-to-date decline of 6.8%, indicating a challenging market environment for the company. The relative strength index (RSI) stands at 28.79, signaling that the stock is in oversold territory, which may suggest a potential for a rebound if buying interest returns.

From a technical perspective, Home Depot is trading approximately 7.9% below its 50-day moving average of $393.13 and about 4.7% below its 200-day moving average of $379.62. These moving averages serve as key indicators of the stock’s longer-term trend, and the current positioning below both suggests a bearish sentiment prevailing in the market. The nearest resistance level is identified at $376.00, which could act as a hurdle for any upward movement in the stock price.

With no established support levels from recent price action, the 50-day moving average may serve as a critical support point going forward. Should the stock price approach this level, it could provide a basis for potential buying opportunities, especially if the RSI begins to show signs of recovery. The 52-week low of $326.31 also looms as a significant psychological level that traders may watch closely.

Given the current technical setup, a decisive move above the resistance at $376.00 could signal a shift in momentum, potentially leading to a test of the 50-day moving average. Conversely, sustained pressure below this level may reinforce bearish sentiment, warranting caution among investors.

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HD Price Action: At the time of publication, Home Depot shares are trading 0.35% lower at $361.07, according to data from Benzinga Pro.

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