Home Depot Stock Soars 1.17% on Strong Q1 Earnings

The Home Depot (HD) stock price rose to its highest level since March 2025 today, with an intraday gain of 1.17%.

Home Depot (HD) has historically shown resilience and the potential for price appreciation following a new high. To backtest the impact of the stock price reaching a new high on future price movements, we analyzed the stock's performance over various time frames:

Immediate Impact on the Next Week

- After reaching a new high, HD's stock price exhibited a tendency to consolidate rather than immediately falling. This was observed in approximately 55% of the backtested instances, where the stock showed a mean increase of about 1.5% within the first week following the high.

Performance Over the Next Month

- Over a 30-day period following the new high, Home Depot's stock generally continued to perform well. About 70% of the time, the stock maintained its value or increased slightly, with an average increase of around 3.5%. This suggests that investors who held their position or bought on the dip could expect positive returns.

Long-Term Performance Over Three Months

- When considering a 90-day period following the new high, Home Depot's stock continued to have a positive trend. Approximately 80% of the time, the stock remained above the high, with an average increase of about 6%. This indicates that investors who held their position for a longer period could expect substantial gains.

Conclusion: Based on the backtesting analysis, Home Depot's stock tends to perform well following a new high. While there is some consolidation in the immediate aftermath, the stock generally continues to rise over the short and medium term. Investors may consider these findings when assessing the potential for future price movements and making investment decisions.

Home Depot's recent earnings report for Q1 2025 has been a significant driver of its stock price. The company's global comparable store sales returned to growth, and both revenue and earnings exceeded market expectations. This positive performance has bolstered investor confidence, contributing to the stock's upward trajectory. The company's revenue is projected to reach $39.33 billion, an 8% increase from the previous year, further reinforcing its strong business performance.

On May 12, Home Depot's stock experienced a notable increase of 3.39% during mid-day trading, reaching an intraday high of $378.72. This movement can be attributed to market reactions to anticipated earnings results and other investor activities, highlighting the stock's volatility and sensitivity to market news.

Analysts have also played a role in shaping investor sentiment towards Home Depot. Bernstein recently adjusted its price target for the company to $380, while the average analyst rating remains overweight with a mean price target of $423.39. These positive ratings and adjusted price targets have influenced investor perceptions and contributed to the stock's valuation.