Home Depot Stock To See Little Movement Past Q2

Home Depot (NYSE: HD) is scheduled to report its fiscal second.-quarter results on Tuesday, August 15. We expect the company’s stock to likely see little movement due to its revenues and earnings almost matching the market expectations. The Federal Reserve has aggressively raised interest rates since 2022 to fight inflation. Consequently, this has translated to higher mortgage rates, suppressing home sales last year. But even with interest rates still high (6.81% in July’s first week compared to 6.4% in March 2023 and only 4.5% in April 2022 last year), home prices are now gaining again. Home prices grew 0.1% year-over-year (y-o-y) in May 2023. It is worth mentioning that HD, with more than 2300 locations, generates more sales from professional contractors than its rival Lowe’s does, and that diversity is a big win for the company in the long term.

Our forecast indicates that Home Depot’s valuation is $317 per share, which is almost in line with the current market price. Look at our interactive dashboard analysis on Home Depot’s Earnings Preview: What To Expect in Q2? for more details.