We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Know Why Home Depot (HD) is Poised for an Earnings Beat in Q4
Read MoreHide Full Article
The Home Depot, Inc. (HD - Free Report) is likely to register year-over-year top and bottom-line growth when it reports fourth-quarter fiscal 2020 results on Feb 23, before market open. The Zacks Consensus Estimate for fiscal fourth-quarter earnings of $2.60 per share suggests growth of 14% from the year-ago period’s reported figure. Also, the consensus estimate has moved up 2.8% in the past 30 days. Moreover, the consensus mark for quarterly revenues is pegged at $30.45 billion, indicating an increase of 18.1% from the figure reported in the year-ago quarter.
Notably, the leading home improvement retailer delivered an earnings surprise of 2.2% in the last four quarters, on average.
Home Depot has witnessed continued strong demand for home-improvement projects as customers spent more time at home during the coronavirus pandemic. The company has been gaining from the high-demand environment, driven by investments in its business. This coupled with broad-based strength across stores and geographies has been boosting comparable sales (comps) performance.
Additionally, Home Depot has been benefiting from strong growth in its Pro and DIY customer categories. Notably, DIY sales outpaced Pro sales growth in the fiscal third quarter, owing to a rise in home-improvement projects.
Moreover, the company has been witnessing significant benefits from the execution of its “One Home Depot” investment plan. Amid the pandemic, customers have been blending the physical and digital elements of the shopping experience more than ever before making the company’s interconnected One Home Depot strategy the most relevant. Its interconnected retail strategy and underlying technology infrastructure have helped consistently boost web traffic in the past six months.
Additionally, it has been benefiting from enhanced delivery and fulfillment options to provide a robust interconnected experience. Gains from these efforts are likely to have aided the company’s sales and earnings performance in the fiscal fourth quarter.
Zacks Model
Our proven model conclusively predicts an earnings beat for Home Depot this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. But that’s not the case here. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Home Depot has a Zacks Rank #3 and an Earnings ESP of +2.29%.
Other Stocks With Favorable Combinations
Here are some other companies you may want to consider, as our model shows that these also have the right combination of elements to post an earnings beat:
Lowe’s Companies, Inc. (LOW - Free Report) currently has an Earnings ESP of +5.29% and a Zacks Rank #3.
L Brands, Inc. (LB - Free Report) presently has an Earnings ESP of +6.31% and a Zacks Rank #3.
These Stocks Are Poised to Soar Past the Pandemic
The COVID-19 outbreak has shifted consumer behavior dramatically, and a handful of high-tech companies have stepped up to keep America running. Right now, investors in these companies have a shot at serious profits. For example, Zoom jumped 108.5% in less than 4 months while most other stocks were sinking.
Our research shows that 5 cutting-edge stocks could skyrocket from the exponential increase in demand for “stay at home” technologies. This could be one of the biggest buying opportunities of this decade, especially for those who get in early.
Image: Bigstock
Know Why Home Depot (HD) is Poised for an Earnings Beat in Q4
The Home Depot, Inc. (HD - Free Report) is likely to register year-over-year top and bottom-line growth when it reports fourth-quarter fiscal 2020 results on Feb 23, before market open. The Zacks Consensus Estimate for fiscal fourth-quarter earnings of $2.60 per share suggests growth of 14% from the year-ago period’s reported figure. Also, the consensus estimate has moved up 2.8% in the past 30 days. Moreover, the consensus mark for quarterly revenues is pegged at $30.45 billion, indicating an increase of 18.1% from the figure reported in the year-ago quarter.
Notably, the leading home improvement retailer delivered an earnings surprise of 2.2% in the last four quarters, on average.
The Home Depot, Inc. Price and EPS Surprise
The Home Depot, Inc. price-eps-surprise | The Home Depot, Inc. Quote
Key Factors to Note
Home Depot has witnessed continued strong demand for home-improvement projects as customers spent more time at home during the coronavirus pandemic. The company has been gaining from the high-demand environment, driven by investments in its business. This coupled with broad-based strength across stores and geographies has been boosting comparable sales (comps) performance.
Additionally, Home Depot has been benefiting from strong growth in its Pro and DIY customer categories. Notably, DIY sales outpaced Pro sales growth in the fiscal third quarter, owing to a rise in home-improvement projects.
Moreover, the company has been witnessing significant benefits from the execution of its “One Home Depot” investment plan. Amid the pandemic, customers have been blending the physical and digital elements of the shopping experience more than ever before making the company’s interconnected One Home Depot strategy the most relevant. Its interconnected retail strategy and underlying technology infrastructure have helped consistently boost web traffic in the past six months.
Additionally, it has been benefiting from enhanced delivery and fulfillment options to provide a robust interconnected experience. Gains from these efforts are likely to have aided the company’s sales and earnings performance in the fiscal fourth quarter.
Zacks Model
Our proven model conclusively predicts an earnings beat for Home Depot this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. But that’s not the case here. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Home Depot has a Zacks Rank #3 and an Earnings ESP of +2.29%.
Other Stocks With Favorable Combinations
Here are some other companies you may want to consider, as our model shows that these also have the right combination of elements to post an earnings beat:
Macy’s, Inc. (M - Free Report) currently has an Earnings ESP of +48.08% and a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.
Lowe’s Companies, Inc. (LOW - Free Report) currently has an Earnings ESP of +5.29% and a Zacks Rank #3.
L Brands, Inc. (LB - Free Report) presently has an Earnings ESP of +6.31% and a Zacks Rank #3.
These Stocks Are Poised to Soar Past the Pandemic
The COVID-19 outbreak has shifted consumer behavior dramatically, and a handful of high-tech companies have stepped up to keep America running. Right now, investors in these companies have a shot at serious profits. For example, Zoom jumped 108.5% in less than 4 months while most other stocks were sinking.
Our research shows that 5 cutting-edge stocks could skyrocket from the exponential increase in demand for “stay at home” technologies. This could be one of the biggest buying opportunities of this decade, especially for those who get in early.
See the 5 high-tech stocks now>>