Is There Still Time to Buy The Home Depot?

While earnings season is over halfway over, there are a handful of exciting reports left. A week from today, we’ll be hearing from The Home Depot, Inc. (HD). Before the opening bell rings on Tuesday, the home improvement giant will reveal its second-quarter financial results.

After a rough start to the year, HD has made a big comeback in recent months. Since April, the stock has rebounded nearly 15%. With its next earnings report just around the corner, can HD keep up the momentum? Let’s find out.

If you’re a homeowner in in North America, chances are that you’ve visited a Home Depot for your hardware needs. With its can-do motto of “more saving, more doing,” Home Depot is the largest home improvement chain in the U.S. Canada and Mexico. Home Depot’s stores offer over one million products for DIY shoppers, professional contractors and others.

With its expansive reach, Home Depot has been profiting from the multi-year recovery in the U.S. housing market. Meanwhile, it has been investing billions in improving its stores. Between now and 2020, it plans to hit $120 billion in annual sales.

So, it’s no surprise that its second-quarter forecasts are quite strong.

For the second quarter, analysts are forecasting $2.84 earnings per share on $30.0 billion in revenue. This represents 26.2% annual earnings growth and 6.7% annual sales growth. Then again, Home Depot has beaten analysts’ earnings estimates for the past several quarters. So I expect it to do even better.

Along with its strong sales and earnings forecasts, Home Depot is known for rewarding its shareholders. The company is currently buying back $15 billion of its stock (yes, you read that right). HD also has a 2.1% annual dividend yield and has paid a consistent dividend for an incredible 124-straight quarters, or over 30 years.

HD rates well in both Dividend Grader and Portfolio Grader, making it a rare find. If you’re looking for a solid Conservative stock to add to your portfolio, HD is a B-rated Buy.


Louis Navellier

Louis Navellier

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