Table of Content
Having a strong externally audited track record, our proprietary stock rating tool, the Zacks Rank, offers a more conclusive picture of a stock's price direction in the near term, since it effectively harnesses the power of earnings estimate revisions. Due to the size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, Home Depot is rated Zacks Rank #3 . For the next fiscal year, the consensus earnings estimate of $17.34 indicates a change of +4.7% from what Home Depot is expected to report a year ago.
Since analysts anticipate that Home Depot will grow its diluted EPS by 15% annually over the next five years, this should allow for double-digit percentage dividend increases in the medium term. This means that Home Depot could completely repay its long-term debt in about 17 months if it didn't pay a dividend and income taxes. Of course, it will take longer because the company will continue to pay a dividend and income taxes.
Stock Price History
No investment decision can be efficient without considering a stock's valuation. Whether a stock's current price rightly reflects the intrinsic value of the underlying business and the company's growth prospects is an essential determinant of its future price performance. While earnings growth is arguably the most superior indicator of a company's financial health, nothing happens as such if a business isn't able to grow its revenues.
Consensus Price Target is the stock price analysts expect to see within a period of 0-18 months. Data, information, or opinions contained in Quantalytics in any form give no consideration to any particular individuals' investment needs or objectives, nor do they consider any individuals' financial condition. Consequently, any such data, information, or opinions do not in any way represent a personal recommendation to any individual investor or any entities, whatever the type. Here at Zacks, we prioritize appraising the change in the projection of a company's future earnings over anything else.
Profits and cash
Forbes partnered with market research company Statista to identify the employers liked best by former military in our annual ranking of America's Best Employers For Veterans. Leveraging Big Data multi-factor models, the Q-Factor Score is assigned to each stock ranging from “Top Buy” to “Top Short”. The Q-Factor Score represents an expectation for how a stock will perform in a given month. Home Depot is graded B on this front, indicating that it is trading at a discount to its peers. Click here to see the values of some of the valuation metrics that have driven this grade. In this department, in part because of its stronger position in the professional contractor niche.
Q.ai is the trade name of Quantalytics Holdings, LLC. Q.ai, LLC is a wholly owned subsidiary of Quantalytics Holdings, LLC (“Quantalytics”). Quantalytics is not a registered investment adviser, brokerage firm, or investment company. Any data, information, or opinions presented by Quantalytics are for general information purposes only.
The Home Depot Financial Summary
But the gist of it is that Home Depot maintains a conservative balance sheet. This should translate into a very low risk of bankruptcy in the long term. As of Q3, Home Depot's net debt was $34.08 billion ($39.15 billion in long-term debt less $5.07 billion in cash). Over the last 12 months, Home Depot has generated $24.64 billion in earnings before interest, taxes, depreciation, and amortization . Home Depot produced $3.92 in diluted EPS during the quarter, which works out to a robust 23.3% growth rate against the year-ago period. This helped the company to top analysts' prediction of $3.41 in diluted EPS by 15%.
We can see the impact on the chain's results, and it isn't devastating. With prices cooling, interest rates soaring, and a recession potentially on the way, Wall Street has abandoned the niche. Measures how much net income or profit is generated as a percentage of revenue.
The data, information and opinions presented have been obtained or derived from sources believed by Quantalytics to be reliable. Quantalytics does not make any representations as to their accuracy or completeness. Home Depot reported revenues of $43.79 billion in the last reported quarter, representing a year-over-year change of +6.5%. For the current quarter, Home Depot is expected to post earnings of $4.10 per share, indicating a change of +4.6% from the year-ago quarter.
A-RATED STOCKS are those stocks the Big Data multi-factor models score as most probable to rise in price. The company beat consensus EPS estimates in each of the trailing four quarters. The company topped consensus revenue estimates each time over this period.
A valuation method that multiplies the price of a company's stock by the total number of outstanding shares. C-RATED STOCKS are those stocks our Big Data multi-factor models score as probable to have negligible return for the month. This means you might prefer to wait on Home Depot stock if your time horizon is shorter than a few years. Longer horizons make it more likely that you'll profit from holding world-class businesses despite periods of economic disruptions. Home Depot clearly fits that description, so investors who can see beyond the current volatility should have no problem keeping the stock in their portfolios.
Its products include building materials, home improvement products, lawn and garden products, and decor products. It offers home improvement installation services,and tool and equipment rental. The company was founded by Bernard Marcus, Arthur M. Blank, Kenneth Gerald Langone, and Pat Farrah on June 29, 1978 and is headquartered at Atlanta, GA. Home Depot is valued today at about 1.8 times annual sales, or close to its lowest valuation since 2016. The good news is that Home Depot has already experienced some of the pain that investors are fearing is on the way. Interest rates have been climbing and home sales slowing for a while now.
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