Home Depot (HD) earnings declined for the first time in three years, but still exceeded first-quarter expectations 

The company missed revenue forecasts and provided a lower guidance for the full year 

Home Depot stock experienced a modest decline following the news 

Home improvement retailers initially benefited from the Covid pandemic and later as defensive plays during inflation and global recession concerns 

Home Depot's stock rallied in early 2023, alongside other housing-related investments, as mortgage rates decreased 

However, Home Depot and its competitor Lowe's (LOW) faced challenges since early February 

Despite the decline in earnings, homebuilder stocks have shown strong performance 

Morgan Stanley analyst Simeon Gutman expressed a moderately positive outlook on Home Depot stock's risk/reward ratio