Which Stock Looks Stronger After A Stellar Q2?

The pandemic restricted people to their homes and many made the best of this opportunity by remodeling their homes and taking up pending home improvement projects. The recent blockbuster results of home improvement retailers Home Depot and Lowe’s clearly indicated the shift in consumers’ discretionary spending from apparel buying and restaurant dining to home goods.

Using the TipRanks’ Stock Comparison tool, we will place the two home retailers alongside each other to see which stock offers the most compelling investment opportunity right now.

Home Depot (HD)

Home Depot, which operates 2,293 stores, benefited immensely from the rise in demand from DIY (do-it-yourself) customers as they took up deck building, painting, and home repairs amid the pandemic. Sales to Pro customers grew double digits.

The company’s sales for the fiscal second quarter (ended August 2) rose 23.4% to $38.1 billion as overall comparable sales or comps surged 23.4% with

Read More

Wall Street Weighs In On Home Depot’s Blowout Q2, BofA Upgrades Stock

Home Depot Inc (NYSE: HD) was one of several major retailers to report blowout second-quarter earnings this week, sending the home improvement stock soaring.

Home Depot posted second-quarter EPS of $4.02 on $38.05 billion in revenue Tuesday. Both numbers topped consensus analyst estimates of $3.71 and $34.53 billion, respectively. Revenue was 23.4% higher year-over-year.

U.S. same-store sales rose 25%, and Home Depot’s average purchase amount was up 10.1%. It was the first quarter of double-digit same-store sales growth for Home Depot in more than seven years.

Several analysts weighed in on the stock following the impressive print. 

Long-Term Tailwinds For Home Depot: BofA Securities analyst Elizabeth Suzuki said it’s not too late to buy Home Depot shares to capitalize on the shelter-in-place environment.

“Although home improvement spending in the coming quarter may decelerate amidst sequentially declining government stimulus/unemployment benefits, we believe that the longer-term tailwinds for the home improvement

Read More