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Earnings Growth & Price Strength Make Home Depot (HD) a Stock to Watch

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Here at Zacks, we offer our members many different opportunities to take full advantage of the stock market, as well as how to invest in ways that lead to long-term success.

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Breaking Down the Zacks Focus List

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Focus List Methodology

When stocks are picked for the Focus List, it reflects our enduring reliance on the power of earnings estimate revisions.

Earnings estimates, or expectations of growth and profitability, come from brokerage analysts who track publicly traded companies; these analysts work together with company management to analyze every aspect that may affect future earnings, like interest rates, the economy, and sector and industry optimism.

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The Focus List is comprised of stocks hand-picked from a long list of #1 (Strong Buy) or #2 (Buy) ranked companies, meaning that each new addition boasts a bullish earnings consensus among analysts.

It can be very profitable to buy stocks with rising earnings estimates, as stock prices respond to revisions. By adding Focus List stocks, there's a great chance you'll be getting into companies whose future earnings estimates will be raised, which can lead to price momentum.

Focus List Spotlight: Home Depot (HD)

Based on net sales, The Home Depot Inc. is the world’s largest home improvement specialty retailer with 2,291 retail stores across the globe as of the end of fiscal 2019. It offers a diverse range of branded and proprietary home improvement items, building materials, lawn and garden products, décor products and related services.

On October 15, 2015, HD was added to the Focus List at $120.27 per share. Shares have increased 167.35% to $321.54 since then, and the company is a #2 (Buy) on the Zacks Rank.

12 analysts revised their earnings estimate higher in the last 60 days for fiscal 2022, while the Zacks Consensus Estimate has increased $1.32 to $14. HD also boasts an average earnings surprise of 9.9%.

Earnings for HD are forecasted to see growth of 16.4% for the current fiscal year as well.

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