1 Incredible Reason to Buy Home Depot Stock Before It Reports Earnings on Aug. 18
Home Depot (HD +1.75%) will report second-quarter earnings on Aug. 18. Analysts expect revenue of $47.2 billion, up about 4% from the year-ago quarter. Adjusted earnings per share are projected at $4.73, slightly higher than last year’s $4.68.
One compelling reason to buy the stock now is Home Depot’s roughly $700 billion opportunity in the Pro market — and it’s already translating into results.
Image source: The Motley Fool.
Home Depot is building a hard-to-replicate business serving professional contractors, positioning it for meaningful growth when the housing market recovers.
The company acquired Mingledorff’s, expanding Home Depot’s reach in heating, ventilation, and air conditioning (HVAC) equipment. It can unlock substantial value from the deal through its SRS distribution network, which includes more than 1,300 branches.
Today’s Change
(1.75%) $6.10
Current Price
$355.62
Key Data Points
Market Cap
Day’s Range
$348.74 – $356.83
52wk Range
$289.10 – $426.75
Volume
3.6M
Avg Vol
4.8M
Gross Margin
31.14%
Dividend Yield
2.60%
That Pro exposure could become a major growth engine as the housing market turns the corner. Early signs are encouraging; in the first quarter, Pro posted better comparable sales than do-it-yourself customers.
Meanwhile, Home Depot’s core business remained resilient despite a weak operating environment. First-quarter sales rose 4.8% year over year. With the stock recently pulling back and the dividend yield above average at 2.6%, investors may have an attractive entry point to buy shares before improving sales trends send the stock higher.
John Ballard has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Home Depot. The Motley Fool has a disclosure policy.
