Home Depot Inc (NYSE: HD) stock is trending after the company posted better-than-expected quarterly results earlier this month and raised its full-year outlook. Home Depot said customers are spending more at its stores.
Same-store sales for Home Depot Inc (NYSE: HD) jumped a whopping 8% in the quarter. Home Depot earned $3.05 per share in the quarter, better than the Street’s estimate of $2.84 per share. Revenue in the quarter came in at $30.46 billion, better than the Street’s estimate of $30.03 billion. Operating profits increased to $4.9 billion, or 16.1% of sales, from $4.5 billion, or 15.9% of sales, reported in the same quarter a year ago.
For the full year 2018, Home Depot expects comparable sales to grow by 5.3%. This forecast is better than the 5% goal set by the company several months back.
Analysts think that Home Depot will keep going up as people in the U.S. now prefer to invest in their existing homes instead of buying new ones. Investing in homes also results in an increase in the property’s value. Housing market remains strong in the U.S. Unlike the overall retail market, home improvement companies like Home Depot aren’t facing any short-term threat of decreased spending.
Home Depot Inc (NYSE: HD) also announced recently that it will buy back $6 billion worth of its stock in 2018. This is more than $4 billion stock buyback the company had planned earlier.
Home Depot has well-defined plans for the future. The company plans to spend about $1.2 billion over the next five years to strengthen its supply chain. Home Depot is also increasing the volume of online orders. Online sales of Home Depot increased 26% in the latest quarter.
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Author does not have investment in stock discussed in this article.