4 Reasons Why Home Depot Is One Of The Best S&P 500 Stocks
This is source I found from another site, main source you can find in last paragraph
The Home Depot, Inc. HD has been in investors’ good books for quite some time, which is well-reflected from its stock price performance. Evidently, this Georgia-based company’s shares have jumped 13.8% year to date, outperforming the Zacks categorized Building Products – Retail/Wholesale industry’s growth of 10.2%. So, let’s take a closer look at the various parameters, which have been driving this Zacks Rank #2 (Buy) company with long-term earnings growth rate of 13% and a VGM Score of “B”.
Home Depot Vs Industry Scorecard
Robust Earnings History & Outlook
Home Depot has a spectacular earnings and sales surprise history. This leading player in the highly-fragmented home improvement industry has been delivering better-than-expected bottom-line results for the five years. The company’s top line has topped estimates consistently for the last 12 quarters. Further, the company has been witnessing year-over-year growth in revenues as well as EPS for a long time now. A snapshot of these improvements is visible in the following chart.
In last reported first-quarter fiscal 2017, Home Depot maintained these trends. The company continued to reap the benefits of the housing market recovery and high demand. Following the sturdy results, the company raised its earnings per share guidance for fiscal 2017 to $7.15 from $7.13, reflecting year-over-year growth of nearly 11%. All these factors inspire optimism about Home Depot’s future performance.
Analysts were also not far behind in raising the estimates, as evident from upward revision in the Zacks Consensus Estimate. Evidently, over the last 60 days, the Zacks Consensus Estimate for fiscal 2017 and 2018 increased from $7.19 to $7.23 and $8.07 to $8.11, respectively. Clearly, analysts polled by Zacks are convinced about the stock’s upbeat performance in the future.