Home Depot's (HD) seventh straight quarter of positive US comparable sales may signal a sharper cyclical upturn ahead, Truist Securities said in a note Tuesday.
US comparable sales increased 1.3%, while enterprise comps rose 1.7%. Truist said the longer a cyclical downturn lasts, the longer the subsequent upcycle typically lasts, and believes Home Depot may be nearing a sharper upward inflection point.
The company reiterated its full year guidance, including 0% to 2% comparable sales growth, 12.8% to 13.0% operating margin and adjusted EPS of about $14.70 to $15.30.
Though not clear, Truist said the inclusion of the tariffs and no change in guide could signal a bit more margin pressure in H2 than previously expected.
Truist maintained a buy rating and $369 price target.
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