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The Home Depot Q3 Preview: Can the Earnings Streak Continue?
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The Zacks Retail and Wholesale sector has sailed through rough waters in 2022, facing high inflation, down more than 30% and lagging behind the S&P 500 by a fair margin.
A titan in the realm, The Home Depot, Inc. (HD - Free Report) , is on deck to unveil Q3 earnings on November 15th, before the market open.
Home Depot offers a diverse range of branded and proprietary home improvement items, building materials, lawn and garden products, décor products, and related services. Based on net sales, the company is the world’s largest home improvement specialty retailer.
Currently, the company carries a Zacks Rank #3 (Hold) paired with an overall VGM Score of a B.
How is everything else stacking up? Let’s find out.
Share Performance & Valuation
Year-to-date, HD shares have marginally outperformed the Zacks Retail and Wholesale sector, down roughly 29%.
Image Source: Zacks Investment Research
Over the last three months, however, HD shares have outperformed their Zacks sector by a notable margin, indicating that buyers have finally started to step up.
Image Source: Zacks Investment Research
The company’s valuation multiples have pulled back modestly amid the stretch of adverse price action; HD’s forward earnings multiple of 17.2X is nicely beneath its 21.7X five-year median and reflects a sizable 25% discount relative to its Zacks sector average of 22.9X.
HD sports a Value Style Score of a B.
Image Source: Zacks Investment Research
Quarterly Estimates
A singular analyst has upped their earnings outlook for the quarter, with the Zacks Consensus EPS Estimate of $4.11 indicating a Y/Y uptick of roughly 5% in earnings.
Image Source: Zacks Investment Research
The company’s top-line looks to expand modestly as well; the Zacks Consensus Sales Estimate of $37.9 billion suggests an improvement of 3% from year-ago quarterly revenue of $36.8 billion.
Quarterly Performance
HD has an impressive earnings track record, exceeding revenue and earnings estimates in nine consecutive quarters.
Just in its latest release, the home improvement retailer penciled in a 2% bottom-line beat paired with a 1% revenue surprise. Below is a chart illustrating the company’s revenue on a quarterly basis.
Image Source: Zacks Investment Research
Putting Everything Together
HD shares are in the red year-to-date but have outperformed the Zacks Retail and Wholesale sector across several timeframes.
Shares don’t appear expensive, with the company’s forward earnings multiple nicely beneath its five-year median and Zacks sector average.
A singular analyst has upped their earnings outlook for the quarter, with estimates suggesting Y/Y upticks in both revenue and earnings.
The company has been the definition of consistency within its quarterly results, chaining together an impressive streak of exceeding both revenue and earnings estimates.
Heading into the release, The Home Depot, Inc. (HD - Free Report) carries a Zacks Rank #3 (Hold) paired with an overall VGM Score of a B.
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The Home Depot Q3 Preview: Can the Earnings Streak Continue?
The Zacks Retail and Wholesale sector has sailed through rough waters in 2022, facing high inflation, down more than 30% and lagging behind the S&P 500 by a fair margin.
A titan in the realm, The Home Depot, Inc. (HD - Free Report) , is on deck to unveil Q3 earnings on November 15th, before the market open.
Home Depot offers a diverse range of branded and proprietary home improvement items, building materials, lawn and garden products, décor products, and related services. Based on net sales, the company is the world’s largest home improvement specialty retailer.
Currently, the company carries a Zacks Rank #3 (Hold) paired with an overall VGM Score of a B.
How is everything else stacking up? Let’s find out.
Share Performance & Valuation
Year-to-date, HD shares have marginally outperformed the Zacks Retail and Wholesale sector, down roughly 29%.
Image Source: Zacks Investment Research
Over the last three months, however, HD shares have outperformed their Zacks sector by a notable margin, indicating that buyers have finally started to step up.
Image Source: Zacks Investment Research
The company’s valuation multiples have pulled back modestly amid the stretch of adverse price action; HD’s forward earnings multiple of 17.2X is nicely beneath its 21.7X five-year median and reflects a sizable 25% discount relative to its Zacks sector average of 22.9X.
HD sports a Value Style Score of a B.
Image Source: Zacks Investment Research
Quarterly Estimates
A singular analyst has upped their earnings outlook for the quarter, with the Zacks Consensus EPS Estimate of $4.11 indicating a Y/Y uptick of roughly 5% in earnings.
Image Source: Zacks Investment Research
The company’s top-line looks to expand modestly as well; the Zacks Consensus Sales Estimate of $37.9 billion suggests an improvement of 3% from year-ago quarterly revenue of $36.8 billion.
Quarterly Performance
HD has an impressive earnings track record, exceeding revenue and earnings estimates in nine consecutive quarters.
Just in its latest release, the home improvement retailer penciled in a 2% bottom-line beat paired with a 1% revenue surprise. Below is a chart illustrating the company’s revenue on a quarterly basis.
Image Source: Zacks Investment Research
Putting Everything Together
HD shares are in the red year-to-date but have outperformed the Zacks Retail and Wholesale sector across several timeframes.
Shares don’t appear expensive, with the company’s forward earnings multiple nicely beneath its five-year median and Zacks sector average.
A singular analyst has upped their earnings outlook for the quarter, with estimates suggesting Y/Y upticks in both revenue and earnings.
The company has been the definition of consistency within its quarterly results, chaining together an impressive streak of exceeding both revenue and earnings estimates.
Heading into the release, The Home Depot, Inc. (HD - Free Report) carries a Zacks Rank #3 (Hold) paired with an overall VGM Score of a B.