The backtest results show that HD has a low win rate of 33.33% across 3, 10, and 30 days following earnings misses, with negative average returns reaching -1.44% over 30 days. This indicates a consistent negative market reaction to earnings misses for HD. The maximum return of 2.53% occurring on day 9 is an outlier rather than a trend. Investors should be cautious and consider the downside risk when HD reports earnings below expectations, as the stock tends to underperform in the short to medium term after such events.

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The backtest results show that the Specialty Retail Industry experienced no significant impact following earnings misses, with a maximum return of only 0.81% observed 54 days after the event. This indicates that earnings misses in this sector do not strongly influence stock performance over the medium term. Consequently, investors may consider that earnings misses in the Specialty Retail Industry are not reliable signals for adjusting positions, suggesting a more neutral stance when such events occur.

The backtest results reveal that The Home Depot's earnings miss led to a bearish impact on the Diversified Consumer Services industry, with notable negative returns over 51 days. Conversely, the Construction and Engineering industry showed a bullish response, reflecting potential resilience or opportunity amid shifting investment patterns.

This divergence suggests that weaker consumer demand in home improvement adversely affects consumer services, while construction-related sectors may benefit from delayed retail spending or project reallocations.

Investors might consider reducing exposure to consumer services and exploring opportunities in construction and engineering following similar earnings misses.

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Backtest HD Earning Missed Expectations

Find all upcoming company earnings reports scheduled for nov 18 2025. Get details on which companies are reporting and their expected results.

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