Home Depot’s stock has dropped this year, but its long-term prospects remain solid. The price of lumber could change consumer decisions on starting or delaying a home improvement project. A simple buy-and-hold strategy can turn you into a millionaire. The two warehouse giants have significantly different stocks.
Jobless claims have risen to 8-month highs, and the number of small businesses defaulting on leases has reached alarming levels, with nearly 35% of small businesses having issues paying their rent. The size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, has resulted in a Zacks Rank #3 for Home Depot. For the current fiscal year, the consensus earnings estimate of $16.64 points to a change of +7.2% from the prior year. Analysts have a consensus estimate of $43.38 billion for the company’s revenue for the quarter, with a low and high estimate of $42.78 billion and $44.05 billion respectively. Wall Street analysts have also projected the company’s year-on-year revenue for 2023 to grow to $156.24 billion, representing a 3.40% jump on that reported in the last financial year. As of September 30th, there was short interest totaling 8,690,000 shares, a drop of 8.4% from the September 15th total of 9,490,000 shares. Based on an average daily volume of 3,370,000 shares, the short-interest ratio is currently 2.6 days.
- The company issued revenue guidance of $155.69 billion-$155.69 billion, compared to the consensus revenue estimate of $156.23 billion.
- The Home Depot Inc. is the world’s largest home improvement retailer with approximately 500,000 employees and 2,300 stores across North America.
- Current price change has pushed the stock -35.07% YTD, which shows the potential for further growth is there.
- We have upgraded our analysis conclusion for this stock since the last evaluation from a Sell to a Hold/Accumulate candidate.
- This is a significant premium to the sector average for the residential construction industry, which is 12.82x forward earnings, 1.05x forward sales, and 9.75x forward cash flow.
- Investors’ concerns about a possible recession are growing amid stubbornly high inflation.
The Zacks Consensus Estimate has changed +0.2% over the last 30 days. Cheap blue-chip stocks refer to companies that are established and have a strong record of delivering solid earnings and returns to investors but have fallen off recently. According to 43 analysts, the average rating for HD stock is "Buy." The 12-month stock price forecast is 360.2, which is an increase of 30.73% from the latest price. The company beat consensus EPS estimates in each of the trailing four quarters.
Whether a stock’s current price rightly reflects the intrinsic value of the underlying business and the company’s growth prospects is an essential The Home Depot Incorporated stock determinant of its future price performance. Based on earnings estimates, Home Depot will have a dividend payout ratio of 43.68% next year.
The Home Depot, Inc. (HD) Is a Trending Stock: Facts to Know Before Betting on It
EPS of $5.05 for the same period compares with $4.53 a year ago. This stock is usually traded at a good volume, and with minor daily changes, the risk is considered https://dotbig.com/markets/stocks/HD/ to be low. During the last day, the stock moved $7.71 (2.88%) between high and low. For the last week, the stock has had daily average volatility of 2.84%.
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The company issued revenue guidance of $155.69 billion-$155.69 billion, compared to the consensus revenue estimate of $156.23 billion. Home Depot declared that its board has https://dotbig.com/markets/stocks/HD/ authorized a share buyback plan on Thursday, August 18th 2022, which authorizes the company to buyback $15,000,000,000.00 in outstanding shares, according to EventVestor.
Current price change has pushed the stock -35.07% YTD, which shows the potential for further growth is there. It is this reason that could see investor optimism for the HD stock continues to rise going into the next quarter. The Home Depot, Inc. operates as a home improvement retailer. In addition, it provides tool The Home Depot Incorporated stock price today and equipment rental services. It also sells its products through websites, including homedepot.com; blinds.com, an online site for custom window coverings; and thecompanystore.com, an online site for textiles and décor products. As of December 31, 2021, the company operated 2,317 stores in the United States.
Company Description
This buyback authorization authorizes the company to buy up to 4.5% of its shares through open market purchases. Shares buyback plans are typically an indication that the company’s board believes its stock is undervalued. Home Depot DotBig has been the subject of 13 research reports in the past 90 days, demonstrating strong analyst interest in this stock. The company’s average rating score is 2.78, and is based on 21 buy ratings, 6 hold ratings, and no sell ratings.
MarketRank is calculated as an average of available category scores, with extra weight given to analysis and valuation. Upgrade to MarketBeat DotBig Daily Premium to add more stocks to your watchlist. The market has remained volatile as Wall Street worries about a potential recession.
Only Zacks Rank stocks included in Zacks hypothetical portfolios at the beginning of each month are included in the return calculations. Zacks Ranks stocks can, and often do, change throughout the month. Certain Zacks Rank stocks for which no month-end price was available, pricing information was not collected, or for certain other reasons have been excluded from these return calculations. The 0.08% of The Home Depot Inc.’s shares DotBig are in the hands of company insiders while institutional holders own 71.20% of the company’s shares. Also important is the data on short interest which shows that short shares stood at 7.84 million on Jul 14, 2022, giving us a short ratio of 1.93. The data shows that as of Jul 14, 2022 short interest in The Home Depot Inc. stood at 0.76% of shares outstanding, with shares short falling to 9.48 million registered in Jun 14, 2022.
Sales & Book Value
We always ensure 100% customer satisfaction with all the services we offer. I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I am an avid investor and trader who has worked in law, politics, and business. Signs of an overall slowdown in the US economy continue to build. The facts discussed here and much other information on Zacks.com might help determine whether or not it’s worthwhile paying attention to the market buzz about Home Depot. However, its Zacks Rank #3 does suggest that it may perform in line with the broader market in the near term. Supported by world-class markets data from Dow Jones and FactSet, and partnering with Automated Insights, MarketWatch Automation brings you the latest, most pertinent content at record speed and with unparalleled accuracy.
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The Home Depot Inc. is the world’s largest home improvement retailer with approximately 500,000 employees and 2,300 stores across North America. This company has built a lot of value for shareholders over the years and could create even more with an upcoming spin-off. In 2021, The Home Depot’s revenue was $151.16 billion, an increase of 14.42% compared to the previous year’s $132.11 billion.
Top 5 3rd Quarter Trades of CADINHA & CO LLC
For Home Depot, the consensus sales estimate for the current quarter of $37.9 billion indicates a year-over-year change of +2.9%. For the current and next fiscal years, $156.53 billion and $160.28 billion estimates indicate +3.6% and +2.4% changes, respectively. While earnings growth is arguably the most superior indicator of a company’s financial health, nothing happens as such https://dotbig.com/ if a business isn’t able to grow its revenues. After all, it’s nearly impossible for a company to increase its earnings for an extended period without increasing its revenues. So, it’s important to know a company’s potential revenue growth. For the current quarter, Home Depot is expected to post earnings of $4.11 per share, indicating a change of +4.9% from the year-ago quarter.