On August 19, Home Depot rose 3.2% in regular trading, trading at $349.74/share, with turnover of $374 million. The rally was driven by a combination of stronger-than-expected fiscal Q2 results and multiple investment bank target price adjustments.
Home Depot reported fiscal Q2 adjusted EPS of $4.92, beating the consensus estimate of $4.73 by 4%. Net sales came in at $47.86 billion versus the expected $47.24 billion, representing a 5.7% year-over-year increase. Enterprise comparable sales rose 1.7%, with US comps up 1.3%, marking the seventh consecutive quarter of positive growth. The company reaffirmed its full-year guidance of 2.5%-4.5% sales growth and flat to 2% comparable sales growth.
Following the results, UBS maintained a Buy rating with a $420 target, while Truist raised its target to $373 and noted Home Depot may be nearing a sharper cyclical upturn. Stifel also raised its target to $346. Additionally, the company announced a nationwide 3-hour express delivery service leveraging over 2,000 store locations as fulfillment hubs.
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