Home Depot (HD) reports earnings on Tuesday. Wedbush Securities managing director of equity research Seth Basham joins Catalysts Hosts Seana Smith and Madison Mills to discuss his expectations for the company's results and how the company will likely provide updates

"We're not expecting too many fireworks in tomorrow's earnings report. We're looking for basically in-line results for the third quarter and [a] reiteration of the full-year guidance. That being said, I think the company can point to some green shoots that will positively impact its business into 2025, and those really revolve around what's happening with housing. Existing home sales on a pending basis are improving, especially in the Western region. In addition, we're seeing improvements in housing affordability despite the backup in interest rates. And we also have more homes available for sale," Basham says.

The analyst tells Yahoo Finance, "Generally speaking, we expect positive inclinations from the Trump administration as it relates to housing policy, which is good news for these guys. But as it relates to tariffs, that's the biggest headwind. 60% tariffs on products coming out of China would be a material negative for Home Depot."

Watch the video above for more on Basham's perspective on what a second Trump term means for Home Depot, the connection between the company's result and the housing market, and more.

To watch more expert insights and analysis on the latest market action, check out more Catalysts here.

This post was written by Naomi Buchanan.