Core Insights - The Home Depot has launched the Creator portal, a platform aimed at connecting digital content creators with the brand to monetize home improvement content and foster new partnerships [1][2][3] Group 1: Creator Portal Features - The Creator portal serves as a centralized hub for creators to access content inspiration, campaign opportunities, and expertise related to home improvement, DIY projects, and decor tips [1][2] - Creators can earn commissions through shoppable links, utilize training resources, and access tools to maximize content opportunities and track performance [1][2] Group 2: Community and Engagement - The portal is designed to create a community that enhances engagement with current and future customers through talented personalities, particularly in the context of home improvement projects [3][4] - The initiative is timed with the world's largest soccer event, leveraging the popularity of sports to generate excitement and tailored content for soccer enthusiasts [3][4] Group 3: Starting Lineup of Creators - The Starting Lineup includes a diverse group of creators such as Dude Perfect, Trinity Rodman, and others, each bringing unique strengths to support various projects [5][6] - The partnership with notable figures aims to inspire the next generation of homeowners and enhance the brand's visibility [4][5] Group 4: Company Overview - The Home Depot is the largest home improvement specialty retailer, operating 2,356 retail stores and over 1,200 SRS locations across North America [7] - The company employs over 470,000 associates and is publicly traded on the New York Stock Exchange [7]

Core Viewpoint - Home Depot has provided a cautious preliminary outlook for its fiscal 2026, indicating no expected near-term recovery in the housing market [1] Financial Projections - For fiscal 2026, comparable sales are expected to remain flat to increase by up to 2%, while total sales are projected to rise between 2.5% and 4.5% [1] - Diluted earnings per share are anticipated to be flat to increase by around 4% [2] - The company reaffirms its fiscal 2025 outlook, expecting total sales growth of approximately 3%, with the acquisition of GMS contributing roughly $2 billion in additional sales [2] Operational Metrics - Comparable sales for the 52-week period are projected to be slightly positive, with plans to open 12 new stores [3] - Gross margin is guided at around 33.2%, with operating margin expected to be approximately 12.6% and adjusted operating margin at around 13% [3] Market Recovery Scenarios - In a market recovery scenario, total sales growth could range from 5% to 6%, with comparable sales increasing by 4% to 5% [4] - Operating profit is expected to grow faster than sales, with diluted earnings per share projected to rise in mid-to-high single digits [4][5] Accelerated Recovery Case - In an accelerated recovery case, sales and earnings per share could grow faster if there is a sharper recovery in the housing market [6] - As of the end of Q3 2025, Home Depot operates 2,356 retail stores and over 1,200 SRS locations across all 50 US states, employing more than 470,000 associates [6]

Group 1 - The presentation featured key executives including the CEO, Senior Executive Vice President, and other department heads, indicating a comprehensive leadership overview [1] - A question-and-answer session was scheduled following the presentations, allowing for further engagement with the executives [2] - The executives' presentations included forward-looking statements as defined by the Private Securities Litigation Reform Act of 1995, highlighting the company's commitment to transparency [2]

Core Insights - Coca-Cola and Home Depot are highlighted as strong dividend-paying stocks that can be integral to long-term investment portfolios [2] Group 1: Coca-Cola - Coca-Cola has a long history, selling its first beverage in 1886, and now operates in over 200 countries with a diverse product range beyond soda [4] - In Q3, Coca-Cola's revenue increased by 6% after adjusting for foreign currency impacts and acquisitions, indicating steady revenue generation despite a lack of rapid growth [5] - The company has a market capitalization of $301 billion, a gross margin of 61.55%, and a dividend yield of 2.91%, which is higher than the S&P 500 average of 1.1% [6][8] - Coca-Cola maintains a comfortable payout ratio of 67% and is recognized as a Dividend King, having increased its dividends for 63 consecutive years [7] Group 2: Home Depot - Home Depot is the largest retailer in the home improvement sector, focusing on both DIY customers and professional contractors, with recent acquisitions to strengthen its professional segment [9] - In its fiscal Q3, Home Depot's same-store sales increased by only 0.2%, impacted by reduced customer traffic and sluggish home improvement spending [10] - The company has a market capitalization of $344 billion, a gross margin of 31.40%, and a dividend yield of 2.66%, which is competitive in the market [12][14] - Home Depot generated $10.4 billion in free cash flow, allowing it to comfortably cover its $6.9 billion in dividends, with a commitment to prioritize dividends over share repurchases [13]

Market Overview - Major stock indices are experiencing little movement, with the Dow down 0.2%, while the S&P 500 and Nasdaq are slightly higher. The Russell 2000 is near all-time highs [2] - Bitcoin has seen a significant increase, up over 4% and hovering around $94,000 per token [2] - Strategists are cautious about chasing rallies due to expectations of a hawkish cut from the Fed, with a potential 25 basis point cut but indications of a pause in January [3] Precious Metals - Silver futures have reached an all-time high of over $61 per ounce, marking a 100% increase year-to-date [5] - Gold is also performing well, up approximately 60% year-to-date, with Wall Street expecting further gains next year, forecasting $4,500 by mid-2026 and a bull case of $5,000 [5] Federal Reserve Insights - The Fed is expected to cut rates by 25 basis points, but there may be dissent among members regarding the pace of future cuts, with predictions of 2 to 5 dissents [21][22] - The Fed's decision is influenced by the current job market and inflation concerns, with some members advocating for a more cautious approach [22][24] Investment Strategies - In a late-cycle environment, sectors such as big tech, telecom, and industrials are expected to continue leading, while defensive sectors like staples and healthcare may gain traction if a meaningful inflection point occurs [18] - Utilities are noted for their dual role in both offensive and defensive strategies, particularly due to their performance in the AI transformation theme [20] Corporate Developments - Warner Brothers Discovery is involved in a significant bidding war, with Paramount Sky Dance making a hostile takeover bid of $108 billion against Netflix's $87 billion offer [30] - Analysts suggest that Paramount's all-cash offer may be more appealing and could face fewer regulatory hurdles compared to Netflix's bid [32][39] Housing Market Dynamics - Home Depot's preliminary outlook for 2026 anticipates flat to 2% sales growth, contingent on improvements in the housing market [100] - Elevated mortgage rates are stifling housing turnover, with 80% of outstanding mortgages below the current 30-year fixed rate of approximately 6.3% [104][105]

Core Viewpoint - Home Depot anticipates sluggish growth in 2026, heavily reliant on a recovery in the housing market to improve its performance [1][2][9] Company Outlook - For 2025, Home Depot expects comparable sales growth to be slightly positive, with total sales projected to increase by 3% due to the opening of 12 new stores and the acquisition of GMS [1] - The company forecasts adjusted earnings per share to decline by approximately 5% in 2025, influenced by consumer spending uncertainty and a challenging housing market [2] - In 2026, Home Depot projects comparable sales growth between 0% and 2%, with total sales growth expected to be between 2.5% and 4.5% [7] - The adjusted earnings per share for 2026 is anticipated to increase by 0% to 4%, partially offsetting the decline from 2025 [7] Industry Context - The home improvement market is expected to remain flat in 2026, with industrywide sales growth projected between -1% and +1% compared to 2025 [4] - Redfin predicts a multi-year reset in the housing market, with home sales expected to rise by only 3% in 2026, as many potential buyers remain priced out [5] - Remodeling activity may increase as homeowners choose to stay in their homes, but ongoing affordability issues could hinder this trend [6] Market Recovery Scenario - Home Depot outlined a "market recovery case" for 2026, which assumes improved housing activity and increased spending on larger projects, projecting comparable sales growth of 4% to 5% and total sales growth of 5% to 6% [8] - However, the likelihood of this optimistic scenario is low, given the economic pressures on U.S. consumers [9] Stock Performance - Home Depot's stock has declined about 10% this year and is down roughly 19% from its 52-week high, leading to concerns about its valuation being overly optimistic [10] - The stock trades at about 23 times adjusted earnings based on the high end of the company's 2026 outlook, which appears expensive given the minimal sales and earnings growth [10]

Core Insights - Home Depot Inc. is providing cautious preliminary guidance for the upcoming year, indicating a lack of expectation for a short-term rebound in the housing market [1] - The company anticipates comparable sales growth to be flat to up 2%, which is below Bloomberg's average estimates [1] - Total sales growth projections are also below market estimates [1] Industry Context - The US housing market is negatively impacting Home Depot, as high interest rates are causing consumers to delay big-ticket purchases and projects requiring financing [3] - Although mortgage rates are lower than a year ago, consumers remain cautious due to higher overall costs and persistently high home prices, making housing less accessible for many [3] Future Outlook - The CFO of Home Depot stated that pressures on the housing market are expected to continue until a catalyst for increased housing activity is identified, with pent-up demand for projects building since 2023 [4] - Home Depot has outlined a "market recovery" scenario where comparable sales could rise by 4% to 5% if housing activity and spending increase [5] Company Strategy - The company is investing in employee development, store operations, and offerings for professional contractors, with plans to open 15 to 20 new stores annually in the near term [6] - Executives express optimism about Home Depot's long-term fundamentals due to the aging and shortage of homes in the US [6] Performance Comparison - Home Depot's latest earnings report indicated that an expected rebound in demand has not occurred, leading to a 10% decline in its shares this year, contrasting with a 16% gain for the S&P 500 Index [7] - The company's performance has diverged from other large retailers like Walmart Inc., which have maintained growth despite facing challenges in the US [7]

Core Viewpoint - The Home Depot, Inc. (NYSE:HD) has a mixed outlook from analysts, with some recommending a Buy and others a Hold rating, reflecting differing opinions on the company's performance and future potential [1][2]. Financial Performance - For fiscal Q3 2026, The Home Depot reported a revenue increase of 2.82% year-over-year, reaching $41.35 billion, which exceeded estimates by $231.5 million [2]. - The company's earnings per share (EPS) of $3.74 fell short of consensus estimates by $0.09, attributed to a lack of storms impacting certain product categories [2]. Analyst Insights - Analyst Steven Zaccone from Citi expressed optimism about The Home Depot's potential to gain market share despite a weaker-than-expected performance in 2025, and he is looking forward to the company's strategy for returning to normalized growth [3]. Company Overview - The Home Depot is recognized as the world's largest home improvement retailer, operating over 2,300 stores that provide a wide range of tools, building materials, appliances, and services for both DIY and professional projects [4].

Home Depot expects higher sales in its next fiscal year, and anticipates growth to accelerate if housing activity gets a boost https://t.co/wmXQc7eLVh ...

About this content About Emily Jarvie Emily began her career as a political journalist for Australian Community Media in Hobart, Tasmania. After she relocated to Toronto, Canada, she reported on business, legal, and scientific developments in the emerging psychedelics sector before joining Proactive in 2022. She brings a strong journalism background with her work featured in newspapers, magazines, and digital publications across Australia, Europe, and North America, including The Examiner, The Advocate, ...