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