Why is Home Depot stock climbing today?

Home Depot's stock climbed 2.1% during pre-market trading after the company reported fiscal second-quarter sales of $47.86 billion, beating analyst expectations of around $47.27 billion. Repair-focused customers demonstrated stronger demand than anticipated, contributing to the revenue surge. Management reaffirmed their full-year guidance, expecting comparable sales to remain flat or grow by 2%, and adjusted earnings per share to stay flat or rise by 4%.

Analyst reactions further supported the earnings-driven move, with Stifel raising its price target to $340 from $320, RBC Capital increasing its target to $343 from $340, and Bernstein slightly trimming it to $344 from $346. The earnings call will be led by interim management due to CEO Ted Decker's temporary medical leave since August 12.

Senior EVP Ann-Marie Campbell and CFO Richard McPhail are managing the company in Decker's absence. While the broader market sentiment is negative, with the S&P 500 down 0.5%, the Nasdaq off 1.2%, and the Dow Jones roughly flat, Home Depot's strong earnings beat and analyst optimism are driving the pre-market rally. Investors are also looking ahead to Lowe's, which is set to report its Q2 results the next day.