Time to Buy Home Depot or Disney Stock After Beating Earnings Expectations?

Core Insights - Home Depot and Disney both exceeded earnings expectations in their recent quarterly results, prompting discussions on potential investment opportunities in these companies [1] Home Depot Summary - Home Depot reported Q3 sales of $40.21 billion, a 6% increase from $37.71 billion in Q3 2023, surpassing estimates of $39.36 billion [2] - The Q3 EPS was $3.78, slightly down from $3.81 in the previous period but beating the Zacks Consensus of $3.64 by nearly 4% [3] - Home Depot has exceeded earnings expectations for 19 consecutive quarters, with an average earnings surprise of 2.27% over the last four quarters [3] Disney Summary - Disney reported Q4 sales of $22.57 billion, a 6% increase from $21.24 billion a year ago, though slightly missing estimates of $22.59 billion [4] - The Q4 EPS was $1.14, exceeding expectations of $1.09 and showing a 39% increase from $0.82 in the same quarter last year [5] - Disney has beaten earnings expectations for eight consecutive quarters, with an average EPS surprise of 13.56% in its last four quarterly reports [6] Stock Performance and Valuation - Disney's stock is up 27% this year, outperforming the S&P 500's 25% and Home Depot's 17% [8] - Home Depot has shown significant long-term gains, with over 300% growth in the last decade compared to the S&P 500's 200% and Disney's 28% [8] - In terms of valuation, Disney trades at 21.4X forward earnings, below the benchmark's 25.2X, while Home Depot trades at 27X [8][9] Dividend Information - Disney reinstated its dividend at the end of 2023 with a 0.82% annual yield, while Home Depot has maintained its dividend since 1987 with a payout of 2.22% [11] Conclusion - Both companies continue to surpass earnings expectations, with Home Depot showing a strong historical performance and Disney's return to growth being compelling [12]