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.
Should Investors Buy Home Depot's Stock After Exceeding Q2 Expectations?
Read MoreHide Full Article
Home Depot’s (HD - Free Report) stock is up +3% since beating its Q2 top and bottom line expectations on Tuesday despite the company stating higher interest rates and macroeconomic uncertainty pressured consumer demand across home improvement projects.
That said, let’s review Home Depot’s favorable Q2 results and see if now is a good time to buy stock in this specialty retail leader as investors await quarterly results from its chief competitor Lowe’s (LOW - Free Report) next week.
Home Depot’s Q2 Results
Home Depot’s Q2 sales came in at $43.17 billion compared to $42.91 billion in the comparative quarter and topped estimates of $42.57 billion by 1%. On the bottom line, Q2 EPS of $4.67 rose half a percentage point from a year ago and beat expectations of $4.54 per share by 3%.
Notably, Home Depot has exceeded earnings expectations for 17 consecutive quarters posting an average EPS surprise of 1.64% in its last four quarterly reports.
Image Source: Zacks Investment Research
Revenue Guidance & Growth Trajectory
Home Depot now expects total sales growth between 2.5%-3.5% for its current fiscal 2025 which fell in line with Zacks estimates of $157.69 billion in total sales or 3% growth.
Based on Zacks estimates, Home Depot’s top line is expected to increase another 1% in FY26 to $159.16 billion.
Image Source: Zacks Investment Research
Furthermore, annual earnings are now projected to be virtually flat in FY25 but are expected to rise 5% in FY26 to $15.96 per share.
Image Source: Zacks Investment Research
Bottom Line
Following its Q2 report, Home Depot’s stock lands a Zacks Rank #3 (Hold). After exceeding its quarterly expectations, the retail giant’s guidance and growth trajectory remains favorable as well but there could still be better buying opportunities ahead as the company grapples with broader economic headwinds.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Should Investors Buy Home Depot's Stock After Exceeding Q2 Expectations?
Home Depot’s (HD - Free Report) stock is up +3% since beating its Q2 top and bottom line expectations on Tuesday despite the company stating higher interest rates and macroeconomic uncertainty pressured consumer demand across home improvement projects.
That said, let’s review Home Depot’s favorable Q2 results and see if now is a good time to buy stock in this specialty retail leader as investors await quarterly results from its chief competitor Lowe’s (LOW - Free Report) next week.
Home Depot’s Q2 Results
Home Depot’s Q2 sales came in at $43.17 billion compared to $42.91 billion in the comparative quarter and topped estimates of $42.57 billion by 1%. On the bottom line, Q2 EPS of $4.67 rose half a percentage point from a year ago and beat expectations of $4.54 per share by 3%.
Notably, Home Depot has exceeded earnings expectations for 17 consecutive quarters posting an average EPS surprise of 1.64% in its last four quarterly reports.
Image Source: Zacks Investment Research
Revenue Guidance & Growth Trajectory
Home Depot now expects total sales growth between 2.5%-3.5% for its current fiscal 2025 which fell in line with Zacks estimates of $157.69 billion in total sales or 3% growth.
Based on Zacks estimates, Home Depot’s top line is expected to increase another 1% in FY26 to $159.16 billion.
Image Source: Zacks Investment Research
Furthermore, annual earnings are now projected to be virtually flat in FY25 but are expected to rise 5% in FY26 to $15.96 per share.
Image Source: Zacks Investment Research
Bottom Line
Following its Q2 report, Home Depot’s stock lands a Zacks Rank #3 (Hold). After exceeding its quarterly expectations, the retail giant’s guidance and growth trajectory remains favorable as well but there could still be better buying opportunities ahead as the company grapples with broader economic headwinds.