Expectations are low for Home Depot's fiscal second-quarter results, due Tuesday morning, as home-improvement retailers struggle with a sluggish housing market.

Shares of Home Depot are down slightly since the start of 2026 and are off some 15% over the past year. The housing affordability crisis has reduced the number of Americans who are moving-the major catalyst for big home-improvement spending-and overall visits and average foot traffic per location fell in the second quarter, according to data from Placer.ai. The resulting lackluster spending data have left investors braced for more of the same from Home Depot. Some are also skittish about the chief executive officer's medical leave of absence, announced last week.

Overall, consensus calls for Home Depot to earn $4.73 a share, an anemic 1% higher than the year-ago period, on revenue of $47.2 billion.

On the bright side, the stock's valuation has come down and is relatively undemanding following Home Depot's underperformance; just over half of the analysts tracked by FactSet are still upbeat. The average analyst price target of $378 is about 13% above where the shares currently trade.

Home Depot has made progress since its better-than-expected first-quarter report, so a similar showing could help the stock continue to make up ground. Likewise, an uneven but ongoing recovery in home sales could further improve industry sentiment.