Market Overview - The Dow Jones Industrial Average fell by 310 points, while the S&P 500 dipped by 0.05% and the Nasdaq gained 0.13%, indicating a complex market environment [3] - The upcoming Federal Reserve meeting on December 9th and 10th is expected to influence market direction, with speculation around Fed officials' comments on inflation and unemployment [4][5] Company Earnings Reports - Home Depot's stock was downgraded from buy to hold due to anticipated weak business conditions linked to housing turnover and labor issues [7] - TJX, the parent company of TJ Maxx and Marshalls, is expected to report strong earnings, and investors are advised to buy on any dips [9] - Target is under scrutiny as it faces challenges with pricing in a high-inflation environment, and the company needs a solid plan to regain its market position [10][11] - Lowe's is performing better than Home Depot, appealing to both consumers and professional contractors [12] - Nvidia's earnings report is highly anticipated, as the company plays a crucial role in the AI and data center markets [14][15] - Walmart's CEO Doug McMillan is retiring, and the company is expected to report a strong quarter under his leadership [18][19] Investment Strategy - The current market sell-off presents buying opportunities for solvent companies, but investors should focus on upgrading from high-risk speculative stocks [23][27] - FedEx is highlighted as a strong investment opportunity, with expectations for its stock to rise above $300 [26][27]

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, ...

Core Insights - Home Depot Inc is set to release its third-quarter earnings report on November 18, with analysts expecting earnings of $3.82 per share, a 1.1% increase year-over-year, and revenue of $41.07 billion, reflecting a 2.1% year-over-year growth [1] - The company is advancing its "One Home Depot" plan, which emphasizes supply-chain expansion, technology investments, and digital enhancements [1] Earnings History and Market Expectations - Home Depot has a generally positive post-earnings history, with five out of the last eight reports resulting in stock price increases, including a 3.2% rise in August [2] - The options market is anticipating a 6% next-day price swing following the earnings report, significantly higher than the average 1.8% movement over the past two years [2] Stock Performance - Home Depot's stock has been declining since mid-September, reaching a peak of $426.75, and was last trading at $368.26, marking a 0.8% decrease [3] - The stock is on track for its eighth weekly loss in the last nine weeks and has decreased by 5.5% since the beginning of the year [3] Options Activity - There has been increased bullish activity in options, with a 50-day call/put volume ratio of 2.32, indicating a higher level of call buying compared to puts, surpassing 98% of readings from the past year [4]

Core Insights - Home Depot, Inc. is expected to report third-quarter fiscal 2025 results on November 18, with anticipated year-over-year growth in both revenue and earnings per share (EPS) [1][2] - The Zacks Consensus Estimate for revenues is $41.1 billion, reflecting a 2.2% increase from the previous year, while EPS is projected to be $3.82, indicating a 1.1% growth [1][2] Revenue and Earnings Expectations - The company is projected to see a 2.1% increase in comparable sales, driven by higher-value purchases and steady demand from both professional and DIY customers [5][6] - The trailing four-quarter average earnings surprise for Home Depot is 1.3%, although the last reported quarter showed a negative surprise of 0.6% [2] Strategic Initiatives - Home Depot is advancing its "One Home Depot" strategy, focusing on supply-chain expansion, technology investments, and digital enhancements to improve customer experience [5][21] - The interconnected retail model is a key growth driver, enhancing the shopping experience and supporting a scalable Pro ecosystem [7][21] Market Position and Competitive Landscape - Home Depot's shares have declined 7.3% over the past three months, which is better than the industry's 13.1% decline [13] - The stock trades at a forward P/E multiple of 23.21X, higher than the industry average of 21.14X, indicating a premium valuation [18] Challenges and Risks - The company faces challenges such as softened demand in high-ticket discretionary categories and macroeconomic pressures, including elevated interest rates affecting consumer behavior [8][9] - There is an expectation of continued pressure on big-ticket renovations due to high interest rates and limited housing turnover [9][11] Long-term Outlook - Despite short-term headwinds, Home Depot's market leadership and operational discipline position it well for long-term value creation [23] - The company's integrated model and expanding Pro ecosystem are expected to enhance its competitive advantage in the home improvement sector [22][23] Conclusion - As Home Depot approaches its earnings release, the focus will be on its ability to meet expectations amid a mixed consumer backdrop, with strong indicators from its market leadership and strategic initiatives [24][25]

Home Depot Inc. (NYSE:HD) reports its third-quarter earnings on November 18 and is expected to follow with an update on its strategic priorities and long-term base-case outlook at its December Analyst Conference.Bank of America analyst Robert F. Ohmes maintains his Buy rating on Home Depot, with a price forecast of $450.Bank of America expects Home Depot to post a 1.3% comparable sales increase in the third quarter of 2026, slightly above the 1.0% reported in the previous quarter. Noting that the Bloomberg ...

Core Insights - Analysts project Home Depot (HD) will report quarterly earnings of $3.82 per share, reflecting a 1.1% year-over-year increase, with revenues expected to reach $41.07 billion, a 2.1% increase from the same quarter last year [1] Earnings Estimates - The consensus EPS estimate has been revised downward by 0.4% in the past 30 days, indicating a reassessment by covering analysts [2] - Changes in earnings estimates are crucial for predicting investor reactions, with empirical studies showing a strong correlation between earnings estimate revisions and short-term stock price performance [3] Key Metrics - Analysts estimate the 'Number of stores - Retail' will reach 2,357, up from 2,345 a year ago [5] - 'Sales per store' is projected to be $17.41 million, compared to $17.15 million from the previous year [5] - The 'Number of customer transactions - Retail' is expected to be 403.35 million, an increase from 399.00 million in the same quarter last year [6] - 'Average ticket - Retail' is anticipated to reach $89.20, up from $88.65 in the same quarter last year [6] Stock Performance - Home Depot shares have shown a return of -4.4% over the past month, contrasting with the Zacks S&P 500 composite's +4.6% change, indicating a potential alignment with overall market performance in the near future [6]

Core Viewpoint - Wall Street anticipates a year-over-year increase in Home Depot's earnings driven by higher revenues, with a focus on how actual results will compare to estimates [1][2]. Earnings Expectations - Home Depot is expected to report quarterly earnings of $3.84 per share, reflecting a year-over-year increase of 1.6% [3]. - Revenue projections stand at $41.02 billion, indicating a 2% increase from the same quarter last year [3]. Estimate Revisions - The consensus EPS estimate has been revised down by 0.15% over the last 30 days, indicating a reassessment by analysts [4]. - The Most Accurate Estimate for Home Depot is lower than the Zacks Consensus Estimate, resulting in an Earnings ESP of -0.98%, suggesting a bearish outlook from analysts [12]. Earnings Surprise Prediction - The Zacks Earnings ESP model indicates that a positive or negative reading can predict deviations from consensus estimates, with a strong predictive power for positive readings [9][10]. - Home Depot's current Zacks Rank is 3, which complicates the prediction of an earnings beat given the negative Earnings ESP [12]. Historical Performance - In the last reported quarter, Home Depot was expected to earn $4.71 per share but reported $4.68, resulting in a surprise of -0.64% [13]. - Over the past four quarters, Home Depot has beaten consensus EPS estimates twice [14]. Conclusion - Home Depot does not appear to be a strong candidate for an earnings beat, and investors should consider other factors when making decisions regarding the stock ahead of the earnings release [17].

Core Insights - The Home Depot Foundation and Meals on Wheels America have reached a significant milestone by repairing and modifying 4,000 homes for senior veterans through their partnership since 2015, with over $21 million invested in the Helping Homebound Heroes program [2][5]. Group 1: Partnership Impact - The partnership aims to make homes safer and more accessible for senior veterans, allowing them to age in place, which is the preferred choice for many seniors according to AARP research [2]. - The Home Depot Foundation has contributed significantly to bridging the gap between federal funding and private philanthropy, which is crucial for supporting the needs of the growing senior population [5]. - Meals on Wheels America serves nearly 360,000 veterans annually, with many programs offering home repair and modification services, supported by The Home Depot Foundation [5]. Group 2: Case Study - A specific case highlighted is that of veteran Juan Lopez, whose home in Austin, Texas, received nearly $40,000 worth of repairs and modifications after an ice storm damaged his roof, showcasing the direct impact of the program [4]. Group 3: Broader Context - The Meals on Wheels network addresses not only hunger but also isolation among seniors, with about 43% of older veterans experiencing isolation, making the program effective in combating this issue [5]. - The Home Depot Foundation has pledged to invest $750 million in veteran causes by 2030 and $50 million in training skilled tradespeople by 2028, indicating a long-term commitment to supporting veterans [9].

Core Insights - The article discusses the impact of weakening consumer sentiment on retail stocks, highlighting the importance of consumer behavior over sentiment surveys [2][5][17] - The National Retail Federation anticipates a record holiday spending season, projecting over $1 trillion in spending, a 4% increase from the previous year [6][17] Retail Sector Overview - The University of Michigan Consumer Sentiment survey recorded the second-lowest reading in history, indicating a significant decline in consumer confidence [2][5] - Despite negative sentiment, historical trends suggest that consumer spending may not decline as sharply as sentiment indicates [8][17] Key Retail Stocks to Watch - **Walmart (WMT)**: The stock has shown resilience, steadily increasing since April and maintaining a bullish momentum with its 50-day moving average trending upwards [11][12] - **Target (TGT)**: The stock is underperforming, nearing six-year lows, and has not shown significant impact on broader market indices due to its smaller market capitalization of $42 billion [13][14] - **Home Depot (HD)**: The stock is in a weaker position compared to Walmart but stronger than Target, facing challenges from high mortgage rates and a sluggish housing market [15][16] Market Trends and Predictions - The retail sector is experiencing mixed signals, with the SPDR S&P Retail ETF (XRT) correcting after a significant rise earlier in the year [10][17] - Upcoming earnings reports from major retailers will provide critical insights into consumer spending patterns as the holiday season approaches [7][17]

Home Improvement Market Overview - The home improvement market is currently weak, with muted performance from Home Depot and Lowe's [2] - The market is lapping the hurricane benefit from the previous year, which was a 55 basis points tailwind for Home Depot and 100 basis points for Lowe's [2] - There is no significant optimism in the home improvement space currently, though rate cuts next year could potentially drive demand [3] Lowe's vs Home Depot - Bernstein prefers Lowe's over Home Depot in the medium term [4] - Lowe's is trading at a valuation discount to Home Depot [5] - Lowe's is more cyclical and expected to benefit more on the upside when the market rebounds [6] - Lowe's has more cost savings opportunities and the valuation gap provides more downside protection [6] Pro Customer & Acquisitions - Both Home Depot and Lowe's are entering the complex pro market, targeting bigger ticket pros [8] - Upcoming guidance from both companies will reflect recent acquisitions, which are likely to be margin dilutive in the near term [8] - Near-term weakness is expected in the broader pro market based on peer and supplier reporting [9] - The housing market, new construction market, and roofing market are not showing signs of recovery [9]