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Home Depot (HD) Moves 8.7% Higher: Will This Strength Last?
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Home Depot (HD - Free Report) shares rallied 8.7% in the last trading session to close at $311.70. This move can be attributable to notable volume with a higher number of shares being traded than in a typical session. This compares to the stock's 2.2% gain over the past four weeks.
Home Depot’s stock rally is an extension of its robust earnings growth trend, which has been boosting its P/E ratio. The company has been benefiting from strong demand for home-improvement projects, robust housing market trends and ongoing investments. The company is gaining from the favorable shift in consumer behavior to a healthy lifestyle. It has been benefiting from its structural transformation in recent years.
Home Depot also benefits from continued strength in both Pro and DIY categories as well as digital momentum. Differentiated product assortments, disciplined pricing strategies and a favorable product mix bode well. Its interconnected retail strategy and underlying technology infrastructure have helped consistently boost web traffic, aiding digital sales.
This home-improvement retailer is expected to post quarterly earnings of $4.11 per share in its upcoming report, which represents a year-over-year change of +4.9%. Revenues are expected to be $37.93 billion, up 3% from the year-ago quarter.
While earnings and revenue growth expectations are important in evaluating the potential strength in a stock, empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.
For Home Depot, the consensus EPS estimate for the quarter has remained unchanged over the last 30 days. And a stock's price usually doesn't keep moving higher in the absence of any trend in earnings estimate revisions. So, make sure to keep an eye on HD going forward to see if this recent jump can turn into more strength down the road.
Home Depot is part of the Zacks Building Products - Retail industry. Lowe's (LOW - Free Report) , another stock in the same industry, closed the last trading session 9.5% higher at $204.32. LOW has returned -3.7% in the past month.
For Lowe's, the consensus EPS estimate for the upcoming report has remained unchanged over the past month at $3.10. This represents a change of +13.6% from what the company reported a year ago. Lowe's currently has a Zacks Rank of #3 (Hold).
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Home Depot (HD) Moves 8.7% Higher: Will This Strength Last?
Home Depot (HD - Free Report) shares rallied 8.7% in the last trading session to close at $311.70. This move can be attributable to notable volume with a higher number of shares being traded than in a typical session. This compares to the stock's 2.2% gain over the past four weeks.
Home Depot’s stock rally is an extension of its robust earnings growth trend, which has been boosting its P/E ratio. The company has been benefiting from strong demand for home-improvement projects, robust housing market trends and ongoing investments. The company is gaining from the favorable shift in consumer behavior to a healthy lifestyle. It has been benefiting from its structural transformation in recent years.
Home Depot also benefits from continued strength in both Pro and DIY categories as well as digital momentum. Differentiated product assortments, disciplined pricing strategies and a favorable product mix bode well. Its interconnected retail strategy and underlying technology infrastructure have helped consistently boost web traffic, aiding digital sales.
This home-improvement retailer is expected to post quarterly earnings of $4.11 per share in its upcoming report, which represents a year-over-year change of +4.9%. Revenues are expected to be $37.93 billion, up 3% from the year-ago quarter.
While earnings and revenue growth expectations are important in evaluating the potential strength in a stock, empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.
For Home Depot, the consensus EPS estimate for the quarter has remained unchanged over the last 30 days. And a stock's price usually doesn't keep moving higher in the absence of any trend in earnings estimate revisions. So, make sure to keep an eye on HD going forward to see if this recent jump can turn into more strength down the road.
The stock currently carries a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>
Home Depot is part of the Zacks Building Products - Retail industry. Lowe's (LOW - Free Report) , another stock in the same industry, closed the last trading session 9.5% higher at $204.32. LOW has returned -3.7% in the past month.
For Lowe's, the consensus EPS estimate for the upcoming report has remained unchanged over the past month at $3.10. This represents a change of +13.6% from what the company reported a year ago. Lowe's currently has a Zacks Rank of #3 (Hold).