Home Depot Inc. HD will be reporting its second-quarter earnings on Tuesday (Aug. 13). Wall Street expects $4.50 in EPS and $43.4 billion in revenues as the company reports before market hours.

The stock is up 5.2% over the past year, 0.59% YTD.

Let’s look at what the charts indicate for Home Depot stock and how the stock currently maps against Wall Street estimates.

Home Depot Stock’s Strongly Bearish Trend Ahead Of Q2 Earnings

Home Depot stock is currently navigating a choppy market, with its stock price of $348.64 sitting below its five-, 20-, and 50-day exponential moving averages, signaling a strongly bearish trend.

Chart created using Benzinga Pro

The eight-day simple moving average (SMA) of $353.18 and the 20-day SMA of $358.29 both indicate sell signals, reflecting recent downward pressure. However, the stock price surpasses the 50-day SMA of $347.69 and the 200-day SMA of $344.19, suggesting some underlying bullish potential.

Chart created using Benzinga Pro

The Moving Average Convergence Divergence (MACD) indicator at 0.05 supports this positive outlook, signaling a buy. Additionally, with a Relative Strength Index (RSI) of 46.53, Home Depot appears oversold, hinting at possible price stabilization or a rebound.

The Bollinger Bands, with a range from $346.90 to $365.12, reinforce the buy signal by indicating strong buying pressure near the lower band.

Despite the current bearish trend, technical indicators suggest Home Depot might be poised for a recovery.

Home Depot Analysts See Over 11% Upside

Ratings & Consensus Estimates: The consensus analyst rating on Home Depot stock stands at a Buy, currently with a price target of $377.56. Recent analyst ratings from Telsey Advisory Group, JP Morgan and Truist Securities suggest an 11.02% upside for Home Depot, with an average price target of $385.33.

HD Price Action: Home Depot stock was trading at $347.20 at the time of publication Monday.

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