Home Depot (HD), a home improvement retailer, is set to announce its Q2 results on August 13. Wall Street analysts expect the company to report earnings of $4.55 per share for Q2 2024, down 2% year-over-year. Meanwhile, analysts expect revenues of $42.58 million, marginally lower than the year-ago figure of $42.92 million, according to TipRanks’ data.
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The company’s stock has remained relatively flat, up just 1.82% year-to-date, due to macroeconomic uncertainties and weakening demand constrained by inflation.
It’s important to highlight that, despite economic volatility and inflation concerns, the company has exceeded consensus EPS estimates in each of the last nine quarters, highlighting its strong fundamentals, brand strength, and market dominance.
Key Takeaways from TipRanks’ Bulls & Bears Tool
According to TipRanks’ Bulls Say, Bears Say tool pictured below, bulls believe that Home Depot’s acquisition of SRS Distribution will drive revenue growth and boost market share. They also point out that Home Depot’s digital transformation efforts enhance its competitive edge in the home improvement sector.
Meanwhile, bears remain concerned about the company’s rising debt level and weak financials. They argue that HD’s debt funding needs have surged by about $2.7 billion more than anticipated. The analysts also noted that the company’s 2024 EPS expectations have been slightly reduced due to the suspension of the share repurchase program.
Options Traders Anticipate a 6.14% Move
Using TipRanks’ Options tool, we can see what options traders are expecting from the stock immediately after its earnings report. The expected earnings move is determined by calculating the at-the-money straddle of the options closest to expiration after the earnings announcement. If this sounds complicated, don’t worry, the Options tool does this for you.
Indeed, it currently says that options traders are expecting a 6.14% move in either direction.
Is HD a Good Stock to Buy Now?
Overall, the Street has a Moderate Buy consensus rating on HD, alongside an average price target of $386.40. However, analysts’ views on the company could change after the company reports its earnings today.
