Analysts Expect a Positive Surprise from Home Depot (HD)

What's Happening With HD View more about HD >

Home improvement retailer Home Depot (HD) reports first-quarter earnings May 21. The company reports before the market open with the consensus calling for earnings of $2.18 per share on revenue of $26.37 billion, versus $2.08 on $24.9 billion during the same period last year. HD shares are up 12.6% on the year.

Technical Analysis

HD stock was recently trading at $193.72 down $21.71 from its 12-month high and $35.63 above its 12-month low. InvestorsObserver’s Stock Score Report gives HD a 63 long-term technical score and a 67 short-term technical score. The stock has recent support above $180 and recent resistance below $205. Of the 20 analysts who cover the stock 12 rate it Strong Buy, 2 rate it Buy, 6 rate it Hold, 0 rate it Sell, and 0 rate it Strong Sell, HD gets a score of 64 from InvestorsObserver’s Stock Score Report.

Analysts' Thoughts

Home Depot stock was trending higher before the recent market volatility, and the stock should regain its footing on the heels of a better than expected quarterly report. Last quarter the company posted a negative earnings surprise, but the street expects a small earnings beat for Q1 with a whisper number of $2.22 for the quarter. Home Depot does have some China exposure, but the U.S. housing market remains solid and Home Depot’s pro services segment is a key driver of the company’s overall growth, and this should help the stock remain strong even if an all-out trade war does erupt between the U.S. and China. Home Depot has shown blistering growth in recent years with profits up 21.6% per annum over the last five years, but earnings growth is expected to slow to 9.4% per annum over the next five years. HD stock trades at 20 times past earnings and 17.6 times future earnings. Analysts see upside in the stock with an average price target of $207.11.

HD
About Home Depot Inc. (The)

Home Depot is the world's largest home improvement specialty retailer, operating nearly 2,300 warehouse-format stores offering more than 30,000 products in store and 1 million products online in the United States, Canada, and Mexico. Its stores offer numerous building materials, home improvement products, lawn and garden products, and decor products and provide various services, including home improvement installation services and tool and equipment rentals. The acquisition of distributor Interline Brands in 2015 allowed Home Depot to enter the maintenance, repair, and operations sector, while the tie-up with Company Store brought textile expertise to the brand.

  • Last Price:
    $207.94
  • Previous Close:
    $207.48
  • Change:
    $0.46 (0.22%)
  • Open:
    $207.90
  • Volume:
    3,540,581
  • Average Volume (100 Day):
    4,199,223
  • Market Capitalization:
    $229.3 B
  • Day's Range:
    $205.90 - $208.48
  • Dividend Yield:
    2.62%
  • 52-week Range:
    $215 - $158.09
  • P-E:
    20.90
  • EPS:
    $9.93
  • Earnings Date:
    8/13/19
  • Ex Dividend Date:
    6/5/19
  • Sector:
    Consumer Cyclical
  • Industry:
    Home Improvement Stores
  • Analyst Average Recommendation:
    Moderate Buy

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