Core Points - Kreate has been recognized by The Home Depot as Partner of the Year for Storage for the second consecutive year, highlighting its commitment to quality storage solutions [1][2] - The award is part of The Home Depot's annual Supplier Partnership and Innovation Awards, which honor suppliers that provide unique value and high performance to customers [2] - Kreate designs, manufactures, and distributes HDX and Husky storage products, which are exclusive to The Home Depot and widely used in American homes [3] Company Overview - Kreate is a leader in innovative and sustainable solutions, serving millions of customers through its exclusive partnership with The Home Depot [5] - The company focuses on various product categories, including plumbing, cleaning, lawn & garden, home organization, and construction, combining engineering precision and sustainability [5] - Kreate leverages innovation centers equipped with 3D printing technology to create efficient solutions that advance the industry [5]

Core Viewpoint - Home Depot is a leading home improvement retailer in the U.S., with upcoming third-quarter earnings release on November 18, 2025, and analysts are focused on its financial performance [1] Financial Performance - Analysts estimate Home Depot's earnings per share (EPS) to be around $3.81, with revenue projected at approximately $41.12 billion, reflecting a 2% growth in both revenue and earnings compared to the previous year [2][6] - In the previous quarter, Home Depot reported $45.3 billion in revenue, marking a 5% year-over-year increase, with a projected 1.3% increase in comparable store sales for Q3 [3] Market Trends - The company's stock has decreased by about 5% year-to-date and is 15% below its 52-week high, indicating recent market challenges [2][6] Management Guidance - Home Depot's management reaffirmed its full-year guidance, projecting about 2.8% sales growth and 1% comparable sales growth, with potential changes to this guidance impacting investor sentiment [4] Financial Metrics - The company's price-to-earnings (P/E) ratio is approximately 24.57, indicating the price investors are willing to pay for each dollar of earnings [4] - Home Depot's debt-to-equity ratio is around 5.75, suggesting a higher reliance on debt financing, while the current ratio stands at 1.15, indicating its ability to cover short-term liabilities [5][6]

Earnings Reports - This week features earnings reports from major companies including Nvidia (NVDA), Home Depot (HD), Walmart (WMT), Target (TGT), Lowes (LOW), Palo Alto Networks (PANW), Medtronic (MDT), and PDD Holdings (PDD) [1] Implied Volatility - Implied volatility tends to be high before earnings announcements due to market uncertainty, leading to increased demand for options [2] - After earnings announcements, implied volatility typically decreases back to normal levels [3] Expected Price Movements - The expected price range for stocks can be estimated by summing the prices of at-the-money put and call options, using the first expiry date after the earnings date [3] - Specific expected price movements for the week include: - TCOM – 6.2% - HD – 4.4% - PDD – 6.7% - MDT – 3.8% - BIDU – 7.8% - NVDA – 7.7% - PANW – 7.6% - LOW – 5.1% - TGT – 9.9% - WMT – 5.1% [4] Trading Strategies - Option traders can utilize expected moves to structure trades, with bearish traders selling bear call spreads and bullish traders selling bull put spreads or looking at naked puts [5] - Neutral traders may consider iron condors, ensuring short strikes remain outside the expected range [5] - It is advisable to use risk-defined strategies and maintain small position sizes when trading options over earnings [6] High Implied Volatility Stocks - A stock screener can identify stocks with high implied volatility, using filters such as total call volume greater than 5,000, market cap greater than 40 billion, and IV rank greater than 50% [7]

Core Viewpoint - Home Depot is expected to report a year-over-year revenue growth of approximately 2.5% for Q3 of FY2026, reaching $41.2 billion, which is a slowdown compared to the previous year's growth of 6.6% [1] Financial Performance - Analysts anticipate adjusted earnings per share (EPS) of $3.84, up from $3.67 in the same quarter last year [1] - In the previous quarter, Home Depot reported total revenue of approximately $45.28 billion, a year-over-year increase of 4.9%, but fell short of EBITDA expectations [1] - Over the past two years, Home Depot has only missed revenue and adjusted EPS expectations once, with an average revenue beat of about 0.9% [1] Market Context - Competitors in the home improvement sector, such as Floor And Decor and Arhaus, reported revenue growths of 5.5% and 8% respectively, providing insights into market expectations [3] - The home improvement sector has seen an average stock price decline of 6.9% over the past month, with Home Depot's stock down 6.8% during the same period [3] Demand Dynamics - The DIY market is slowing down, but demand from professional customers remains stable, which helps mitigate the impact of declining consumer renovation demand [4] - Home Depot has reiterated its sales growth guidance for FY2025 at approximately 2.8%, with comparable store sales growth of about 1%, which is lower than analysts' expectations [4] Cost Pressures - The company acknowledges rising costs due to tariffs but plans to manage these through selective price increases or promotions [5] - High mortgage rates and low inventory of existing homes are causing delays in large renovation projects, negatively impacting demand for significant DIY and renovation projects [6]

Core Viewpoint - Home Depot (HD.US), the largest home improvement retailer globally, is expected to report a Q3 revenue growth of approximately 2.5% year-over-year, reaching $41.2 billion, which is a slowdown from the previous year's 6.6% growth due to high mortgage rates and tariff pressures [1] Group 1: Financial Performance Expectations - Analysts anticipate adjusted earnings per share (EPS) of $3.84 for Q3, compared to $3.67 in the same period last year [1] - In the previous quarter, Home Depot reported total revenue of approximately $45.28 billion, a year-over-year increase of 4.9%, but fell short of EBITDA expectations [1] - Over the past two years, Home Depot has only missed revenue and adjusted EPS expectations once, with an average revenue beat of about 0.9% [1] Group 2: Market Context and Competitor Performance - Competitors in the home improvement sector, such as Floor And Decor and Arhaus, reported Q3 revenue growths of approximately 5.5% and 8% respectively, providing insights into market expectations [3] - The home improvement sector has seen an average stock price decline of 6.9% over the past month, with Home Depot's stock down 6.8% during the same period [3] Group 3: Demand Dynamics - The DIY market is slowing down, but demand from professional contractors remains robust, which may help mitigate the impact of declining consumer renovation demand [4] - Home Depot has reiterated its sales growth guidance for FY2025 at approximately 2.8%, with comparable store sales growth of about 1%, which is lower than analysts' expectations by 1.4% [4] Group 4: Cost Pressures and Strategic Responses - The company acknowledges rising costs due to tariffs but will not implement widespread price increases across the U.S., opting for selective price adjustments instead [5] - High mortgage rates and low inventory of existing homes are causing delays in large renovation projects, negatively impacting demand for significant DIY and renovation projects [6]

Coming up: Earnings from Nvidia, Walmart, Target, Home Depot and other top retailers; housing market data; November consumer sentiment. https://t.co/Ge2pgtF7jb ...

Group 1 - Nvidia is set to report its quarterly earnings this week, with strong investor interest due to the volatility in the artificial intelligence sector and concerns over corporate valuations [4][5] - Nvidia's previous earnings report narrowly exceeded expectations, indicating strong demand for AI technology [4] - Walmart will also report earnings this week, with its share price reaching an all-time high in October, and a leadership change announced as John Furner will take over as CEO on February 1 [4][5] Group 2 - Other major retailers reporting this week include Target and Home Depot, with Home Depot raising its outlook due to increased demand for home improvement projects [5][6] - The housing market data, including existing-home sales and housing starts, is expected to be released, although delays may occur due to the recent government shutdown [8] - The Federal Open Markets Committee's October meeting minutes will provide insights into interest rate deliberations, while consumer sentiment data is also being monitored [8]

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]