Home Depot Earnings: 3 Things to Watch
Investors have pushed the stock of Home Depot (NYSE: HD) far above the return of the wider market in 2020. Even though U.S. economic conditions would normally imply a difficult selling period ahead for the company, Wall Street is more focused on booming demand for home improvement projects. The recessionary pressure from collapsing employment numbers and falling incomes, meanwhile, might only be temporary.
That optimistic reading will be put to the test when the retailer announces its fiscal second-quarter earnings results on Tuesday, Aug. 18. Below, we'll look at a few metrics that will determine whether or not that report is celebrated by Home Depot shareholders.
Home Depot remained open through the COVID-19 shutdown in the fiscal first quarter, and so its sales growth was strong compared with nonessential retailers like TJX Companies, which posted a 50% revenue slump in the period. The home improvement chain's growth landed at 7.5% in the core U.S. market, in fact, or about double its prior expansion rate.
Source Fool.com
