Market Overview - Pre-market futures show slight increases, with the Dow up 73 points (+0.16%), S&P 500 up 16 points (+0.24%), Nasdaq up 77 points (+0.31%), and Russell 2000 up 8 points (+0.37%) [1] Trade Data - The U.S. trade deficit for August is reported at -$59.6 billion, better than the expected -$61.0 billion and improved from the previous month's -$78.2 billion [3] - Imports fell while exports remained sluggish, indicating a weaker trade narrative despite the improved deficit figures [4] Earnings Reports - Target (TGT) shares fell -3.4% after Q3 earnings of $1.78 per share beat consensus by 2 cents, but revenues of $25.27 billion missed expectations by -0.36% and were lower than the previous year's $25.67 billion [5] - Lowe's (LOW) shares rose +5.9% following a positive earnings beat of $3.06 per share, with revenues of $20.81 billion meeting estimates and outperforming Home Depot on year-over-year comparisons [6] - The TJX Companies (TJX) reported earnings of $1.28 per share, surpassing estimates of $1.22, with sales of $15.12 billion exceeding the $14.88 billion consensus [7] NVIDIA Performance - NVIDIA (NVDA) is expected to report extraordinary earnings growth of +53.1% and revenue growth of +55.85% for Q3, with a market cap of $4.4 trillion [8] - Pre-market futures for NVIDIA are up +1.6%, contributing to a +35% stock value gain since the start of the year, and shares have increased over +1500% since October 2022 [9]

Core Insights - Home Depot is the world's largest home improvement retailer, serving both DIY enthusiasts and professional contractors, and faces competition from Lowe's and Menards [1] Stock Performance - The current stock price of Home Depot is $336.48, reflecting a decrease of 6.02% or $21.55, with a trading range for the day between $336.02 and $348.80 [4] - Over the past year, the stock has fluctuated between a high of $439.37 and a low of $326.31 [4] - The market capitalization of Home Depot is approximately $334.93 billion, indicating its significant market presence [5] Analyst Outlook - Zachary Fadem from Wells Fargo has set a price target of $400 for Home Depot, suggesting a potential increase of 18.88% from the current stock price [2][6] Innovations - Home Depot has launched an AI-powered tool called the Blueprint Takeoffs solution, which enhances efficiency for professional renovators and builders by providing faster and more accurate material lists and estimates, reducing the time for creating takeoffs from weeks to days [3][6] Market Activity - The trading volume for Home Depot on the current day is 10.15 million shares, indicating active investor interest [5]

Core Insights - Lowe's reported better-than-expected profits, leading to a surge in its stock price, contrasting with rival Home Depot's disappointing earnings [1][2][7] Financial Performance - Adjusted earnings per share (EPS) for Lowe's in Q3 were $3.06, an increase from $2.89 year-over-year, exceeding analyst expectations [2] - Revenue for the quarter was approximately $20.81 billion, aligning with estimates, while comparable sales growth was slower than anticipated at 0.4% [2][5] Sales Drivers - The increase in profits was attributed to a rise in online sales and sales to professional contractors, alongside double-digit growth in "home services" [3] - CEO Marvin Ellison noted that the current quarter has started positively with comparable sales growth, which is significant given last year's strong sales due to hurricane-related demand [4][7] Future Outlook - Lowe's raised its full-year revenue forecast to $86 billion, up from a previous range of $84.5 billion to $85.5 billion, surpassing analyst consensus [5] - The company anticipates adjusted EPS at the lower end of its previous range, now projected at $12.25, citing ongoing macroeconomic uncertainty [5] - Comparable sales are now expected to be roughly flat, compared to the previous guidance of flat to 1% growth [5] Market Context - The results from Lowe's and Home Depot may indicate broader trends in the U.S. housing market and demand for home improvement supplies and services [4] - Analysts from JPMorgan highlighted the contrast between Lowe's positive outlook and Home Depot's cautious stance regarding current demand [8]

Core Viewpoint - Home Depot reported weaker-than-expected earnings for the third consecutive quarter, leading to a significant drop in stock price, with management lowering its earnings guidance for the year [1][2]. Financial Performance - In fiscal Q3, Home Depot earned $3.74 per share, below the expected $3.84, with same-store sales growth at only 0.2% [1]. - The company now anticipates a 5% decline in adjusted earnings per share for the year [2]. - Following the earnings report, Home Depot's shares have decreased approximately 20% from their September high [2]. Strategic Positioning - Despite the earnings dip, management asserts that Home Depot maintains its market-leading position and is gaining market share from competitors [3]. - The recent acquisition of GMS contributed about $900 million to quarterly sales, indicating strategic expansion into the higher-margin professional contractor segment [3]. Digital and Operational Growth - Home Depot's digital platform sales grew by 11% year-over-year, showcasing successful omnichannel execution and operational improvements [4]. Dividend and Valuation - The company offers a healthy dividend yield of 2.73%, making it an attractive option for investors [4]. - Home Depot is currently trading at a price-sales (P/S) ratio of 2.23x, which is considered inexpensive relative to its historical multiples [6]. Market Outlook - The Federal Reserve's interest rate cuts are expected to drive a recovery in Home Depot shares, particularly as the housing market begins to thaw [5]. - Home Depot's exposure to both professional contractors and DIY clients positions it well to benefit from a potential housing market recovery [5]. Analyst Sentiment - Despite the recent earnings miss, Wall Street analysts remain bullish on Home Depot shares [7].

Core Insights - Lowe's Companies reported an earnings beat with $3.06 per share against an analyst forecast of $2.95, although sales were slightly lower than expected at $20.81 billion compared to the forecast of $20.84 billion [1][3] Financial Performance - The non-GAAP profit of $3.06 per share translates to a GAAP profit of $2.88 per share, reflecting a nearly 4% decline from the previous year [3] - Same-store sales (SSS) growth was 0.4%, which is double the growth rate of Home Depot, while total sales growth reached 3% [3][4] Market Context - Lowe's raised its full-year sales forecast to $86 billion but lowered its SSS forecast to predict flat sales against 2024 [5] - The company also adjusted its forecast for adjusted operating margin and indicated that earnings would be near the low end of previous guidance at approximately $12.25, adjusted for one-time items [5] Stock Valuation - Lowe's stock is trading at a price-to-earnings ratio of under 19x, which presents a modestly more optimistic outlook compared to Home Depot, although it is still considered a sell [6][7]

Core Viewpoint - Lowe's Companies Inc reported adjusted third-quarter earnings of $3.06 per share on revenue of $20.81 billion, exceeding estimates, but lowered its full-year guidance due to home affordability and economic uncertainty [1] Financial Performance - The adjusted earnings per share of $3.06 and revenue of $20.81 billion indicate a strong performance for the quarter [1] - The stock price increased by 3.3% to $226.75 following the earnings report [1] Market Reaction - Analysts reacted positively to Lowe's report, leading to 12 price-target cuts for sector peer Home Depot, with Bernstein setting the lowest target at $362 [2] - Lowe's stock had previously been under pressure, trading at $218 before the earnings report, and was on a five-day losing streak [3] Technical Indicators - The 14-Day Relative Strength Index (RSI) for Lowe's reached 18, indicating it was in "oversold" territory, contributing to today's rally [3] - The stock has experienced significant losing streaks in the past, including an eight-day slide in September and a ten-day slide in October [3] Sentiment and Options Activity - Bearish sentiment has been prevalent, with a 50-day put/call volume ratio of 1.39, placing it in the 90th percentile of its annual range [4]

Core Insights - Home Depot reported a 2.8% increase in net sales for Q3 2025, totaling $41.4 billion, but reduced its full-year earnings outlook due to softer demand and macroeconomic pressures [1][2] - The acquisition of GMS contributed approximately $900 million to the total sales, accounting for about eight weeks of revenue [2] Sales Performance - Comparable sales increased by 0.2%, with US comparable sales rising by 0.1% [2] - Gross profit rose nearly 3% year-on-year to $13.81 billion [2] Earnings and Guidance - Net earnings remained unchanged at $3.6 billion, while diluted earnings per share decreased from $3.67 to $3.62 [2] - Operating income declined by 1.2% to $5.35 billion from $5.42 billion [2] - Home Depot now expects full-year sales growth of around 3%, with GMS projected to contribute $2 billion in additional revenue [4] - Adjusted earnings per share are anticipated to decline by approximately 5% from the previous year, a revision from earlier guidance of a 2% decrease [4] Future Plans - For fiscal 2025, Home Depot plans to open 12 new stores [5] - The company is targeting a gross margin of 33.2% and an operating margin of 12.6%, with an adjusted operating margin expected to be around 13% [5]

Core Insights - The home improvement sector is facing challenges due to a weak housing market and economic uncertainty, impacting major players like Home Depot and Lowe's [1][6]. Home Depot - Home Depot's Q3 net sales increased by 2.8% year over year to $41.4 billion, but this figure includes $900 million from the acquisition of GMS Inc. Without this, total sales were essentially flat compared to the previous year [2]. - Comparable sales growth was 0.2%, with a slight 0.1% growth in the U.S. Gross margin remained flat at 33.4% [3]. - Operating income fell by 1.2% year over year to $5.4 billion, and net income declined by 1.3% to $3.6 billion [3]. - CEO Ted Decker noted that while underlying demand remained stable, an anticipated increase in demand did not occur, attributing this to consumer uncertainty and housing market pressures [4]. Lowe's - Lowe's reported a 3% year-over-year increase in total sales to $20.8 billion, with comparable sales growing by 0.4%, driven by strong pro sales and an 11.4% increase in online sales [5]. - The retailer experienced positive comparable sales in 10 out of 14 product categories, including appliances and flooring [5]. - Similar to Home Depot, Lowe's saw a decline in profits, with operating income falling over 2% to $2.5 billion and net income decreasing by 4.7% to $1.6 billion [6]. Market Trends - Big-ticket purchases at Home Depot grew by 2.3%, but there is a noted decline in engagement for larger discretionary projects, which are typically financed by customers [7]. - Both Home Depot and Lowe's have updated their full-year outlooks, including lowering profit forecasts due to ongoing market uncertainties [7].

Core Insights - Home Depot reported a 1% decrease in earnings to $3.74 per share adjusted, missing analyst expectations of $3.84 per share [1] - Sales increased by 2.8% to $41.35 billion, which was below market expectations [1] Company Performance - Home Depot's stock retreated following the earnings report and lowered outlook [1] - The performance of Home Depot is contrasted with rival Lowe's, which is set to report earnings soon [1] Market Context - The Dow Jones index experienced a significant drop of 300 points, with Home Depot, Nvidia, and Palantir being early losers in the market [2]

Lowe's stock bounces after third-quarter sales of stores open more than a year rise more than expected, but also outpace those of rival Home Depot. ...