Yahoo Finance Should Investors Buy Home Depot's Stock After Exceeding Q2 Expectations?
Home Depot’s HD stock is up +3% since beating its Q2 top and bottom line expectations on Tuesday despite the company stating higher interest rates and macroeconomic uncertainty pressured consumer demand across home improvement projects.
That said, let’s review Home Depot’s favorable Q2 results and see if now is a good time to buy stock in this specialty retail leader as investors await quarterly results from its chief competitor Lowe’s LOW next week.
Home Depot’s Q2 Results
Home Depot’s Q2 sales came in at $43.17 billion compared to $42.91 billion in the comparative quarter and topped estimates of $42.57 billion by 1%. On the bottom line, Q2 EPS of $4.67 rose half a percentage point from a year ago and beat expectations of $4.54 per share by 3%.
Notably, Home Depot has exceeded earnings expectations for 17 consecutive quarters posting an average EPS surprise of 1.64% in its last four quarterly reports.
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Revenue Guidance & Growth Trajectory
Home Depot now expects total sales growth between 2.5%-3.5% for its current fiscal 2025 which fell in line with Zacks estimates of $157.69 billion in total sales or 3% growth.
Based on Zacks estimates, Home Depot’s top line is expected to increase another 1% in FY26 to $159.16 billion.
Image Source: Zacks Investment Research
Furthermore, annual earnings are now projected to be virtually flat in FY25 but are expected to rise 5% in FY26 to $15.96 per share.
Image Source: Zacks Investment Research
Bottom Line
Following its Q2 report, Home Depot’s stock lands a Zacks Rank #3 (Hold). After exceeding its quarterly expectations, the retail giant’s guidance and growth trajectory remains favorable as well but there could still be better buying opportunities ahead as the company grapples with broader economic headwinds.
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The Home Depot, Inc. (HD) : Free Stock Analysis Report
Lowe's Companies, Inc. (LOW) : Free Stock Analysis Report
