Will Home Depot Keep Leading the Dow After Earnings on Tuesday?

By Chris Lange Published May 18, 9:52AM EDT

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Will Home Depot Keep Leading the Dow After Earnings on Tuesday? — © Lokibaho / Getty Images

Home Depot Inc. (NYSE: HD | HD Price Prediction) is scheduled to release its fiscal first-quarter financial results before the markets open on Tuesday. Analysts are calling for $2.26 in earnings per share (EPS) and $27.28 billion in revenue. The same period of last year reportedly had $2.27 in EPS and $26.38 billion in revenue.

This company was a “good economy winner” known for raising dividends and buying back stock, but with shares now back to their all-time highs, the stock has a dividend yield right at 2.5%. It should be expected that very few homes will be purchased in the coming months, even with rock-bottom mortgage rates, but homeownership requires ongoing maintenance and care that will keep Home Depot shoppers going there for years.

During the previous quarter, comparable sales rose 5.2% globally and 5.3% in the United States. For the fiscal 2019 full year, comparable sales increased 3.5% globally and 3.8% domestically.

At that time, the board of directors has approved a 10% increase in its quarterly dividend to $1.50 per share, which equates to an annual dividend of $6.00 per share.

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Excluding Monday’s move, Home Depot stock had outperformed the S&P 500 and Dow Jones industrial average with a gain of about 10% year to date. In the past 52 weeks, the share price was up closer to 24%.

A few analysts weighed in on Home Depot ahead of the report:

Piper Sandler has a Neutral rating and a $236 price target.
Jefferies has a Buy rating with a $269 target price.
Wells Fargo has an Overweight rating and a $260 price target.
Raymond James rates it as Outperform with a $230 price target.
SunTrust’s Hold rating comes with a $220 price target.
UBS has a Buy rating with a $250 price target.

Home Depot stock traded up 3% at $246.50 on Monday, in a 52-week range of $140.63 to $247.36. The consensus price target is $225.92.

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About the Author Chris Lange →

Chris Lange is a writer for 24/7 Wall St., based in Houston. He has covered financial markets over the past decade with an emphasis on healthcare, tech, and IPOs. During this time, he has published thousands of articles with insightful analysis across these complex fields. Currently, Lange's focus is on military and geopolitical topics.

Lange's work has been quoted or mentioned in Forbes, The New York Times, Business Insider, USA Today, MSN, Yahoo, The Verge, Vice, The Intelligencer, Quartz, Nasdaq, The Motley Fool, Fox Business, International Business Times, The Street, Seeking Alpha, Barron’s, Benzinga, and many other major publications.

A graduate of Southwestern University in Georgetown, Texas, Lange majored in business with a particular focus on investments. He has previous experience in the banking industry and startups.