Image Alt

The Investing Box

  /  Cryptocurrency   /  Should you buy Home Depot stock after solid Q2 results?

Should you buy Home Depot stock after solid Q2 results?

buy Home Depot stock after solid Q2 results

Home Depot Inc (NYSE: HD) is in the green this morning after reporting better-than-expected results for its fiscal second quarter and reiterating its full-year guidance.

Is Home Depot stock a buy here?

Inventories up 38% year-on-year remained a challenge for the home improvement retailer. Still, Michael Lasser (Retail Analyst at UBS) said on CNBC’s “Squawk on the Street”:

Home Depot is one of the best operated retailers on the planet. They’re taking share, they’re leveraging their expenses and they’re navigating through a really tricky environment quite well.

Transactions were down about 3.0% in the recent quarter. Still, he recommends that you buy Home Depot stock that has upside to $360 – another 10% increase on top of today’s gain.

Consumer is in a relatively good shape; it’s going to remain relatively steady. So, Home Depot is a stock, I think, you can make money on especially if you look over the next twelve months.

Home Depot Q2 financial highlights

  • Net income came in at $5.17 billion versus the year-ago $4.81 billion
  • EPS jumped to $5.05 from $4.53 in the same quarter last year
  • Sales went up 6.5% year-over-year to a record $43.79 billion
  • Consensus was $4.95 of per-share earnings on $43.36 billion in sales
  • Comparable sales increased 5.8% – handily beating the expectations
  • Average ticket was 9.1% bigger than Q2 of the previous year

Other notable figures and future outlook

Other notable figures in the earnings report include a 10 basis points hit to gross margin as cost of sales shot up 5.5%, as per the earnings press release.

For fiscal 2022, the retail behemoth forecasts about a 3.0% increase in sales. It expects mid-single-digit growth in EPS this year versus the consensus for a 6.0% increase. Home Depot stock is currently down nearly 20% versus the start of the year.

The post Should you buy Home Depot stock after solid Q2 results? appeared first on Invezz.