Core Viewpoint - Home Depot, Lowe's, and TJX Companies are set to release quarterly results, with a particular focus on Nvidia's upcoming earnings report, which is expected to provide insights into the AI chip market [1][21][22] Group 1: Company Performance - Home Depot shares have slightly outperformed Lowe's in the year-to-date period, but both have significantly underperformed the broader market [1] - Home Depot's same-store sales have been negative for the last eight quarters, with a current estimate of a -1.7% decline for the upcoming report [6][7] - Lowe's is also facing pressure on same-store sales, with a current estimate of a -1.67% decline, and expected earnings of $1.82 per share on $18.29 billion in revenues, reflecting a year-over-year EPS increase of +2.8% but a revenue decline of -1.7% [8] Group 2: Market Environment - The operating environment for Home Depot and Lowe's is challenging due to unfavorable interest rates, which are impacting existing home sales and consequently their sales performance [4][5] - Elevated mortgage rates are a significant headwind for sales, as affordability issues keep potential buyers sidelined [5][10] - The Fed's easing policy may not lead to a rapid decrease in mortgage rates, suggesting that existing home sales trends are unlikely to improve in the near term [9][10] Group 3: Retail Sector Overview - In the broader retail sector, Q4 earnings for 21 retailers in the S&P 500 are up +36.8% year-over-year, with 71.4% beating EPS estimates [12][13] - The earnings growth in the retail sector is significantly influenced by Amazon, which reported a +86.9% increase in Q4 earnings [14][15] - Excluding Amazon, the rest of the retail sector has seen only a +3% increase in earnings, indicating that much of the growth is concentrated in a few key players [15]

Core Insights - Home Depot is expected to report fourth-quarter earnings with year-over-year sales growth, despite a projected decline in comparable store sales for the ninth consecutive quarter [1][5]. Sales and Earnings Expectations - Analysts anticipate adjusted earnings per share (EPS) of $3.02 and sales of $39.06 billion, an increase from $34.79 billion a year ago [3]. - Comparable store sales are forecasted to decline by 1.66% year-over-year, influenced by inflation affecting sales of big-ticket items [3]. Analyst Sentiment - The majority of analysts maintain a bullish outlook on Home Depot, with eight "buy" ratings, three "hold," and one "sell," and an average price target of approximately $433, which is about 10% above the current stock level [2][5]. - JPMorgan analysts have raised their price target for Home Depot from $450 to $475, citing its valuation compared to retail peers and adding it to their "Analyst Focus List as a growth investment" [4][5].

Core Viewpoint - Home Depot is expected to report increased revenues and earnings for the fourth quarter of fiscal 2024, driven by strategic acquisitions and improved seasonal demand [1][2][5]. Financial Performance - The Zacks Consensus Estimate for fourth-quarter revenues is $39 billion, reflecting a 12.2% year-over-year growth [1]. - The estimated earnings per share (EPS) is $3.08, indicating a 9.2% increase from the previous year [2]. - Home Depot has shown a positive earnings surprise trend, with an average surprise of 2.3% over the last four quarters [3]. Strategic Initiatives - The acquisition of SRS Distribution Inc. is expected to contribute significantly to sales growth [5][6]. - The "One Home Depot" investment strategy focuses on supply-chain expansion and digital improvements, enhancing online traffic and sales [7][19]. - The company anticipates a 4% year-over-year sales increase for fiscal 2024, supported by additional sales from the 53rd week and SRS [6]. Market Challenges - Higher interest rates and macroeconomic uncertainty are anticipated to negatively impact consumer demand for home improvement projects [8][20]. - Comparable customer transactions are projected to decline by 2.5% for fiscal 2024, affecting overall sales performance [9]. Margin and Valuation - Home Depot's gross margin is projected at 33.5% for fiscal 2024, with an operating margin of 13.5% [10][11]. - The stock trades at a forward P/E multiple of 25.23X, above the industry average of 23.12X, indicating a premium valuation [16]. Competitive Position - Home Depot's stock has gained 8.6% over the past year, underperforming compared to the broader industry and S&P 500 [12][13]. - The company maintains a competitive edge through its interconnected retail strategy and strong Pro customer growth [18][19].

Group 1 - Home Depot's stock closed at $395.43, reflecting a decline of 1.95% from the previous day, underperforming the S&P 500's gain of 0.24% [1] - Over the past month, Home Depot's shares have decreased by 3.61%, while the Retail-Wholesale sector gained 5.98% and the S&P 500 increased by 2.37% [1] Group 2 - The upcoming earnings report for Home Depot is scheduled for February 25, 2025, with an expected EPS of $3.08, indicating a 9.22% increase from the same quarter last year [2] - The Zacks Consensus Estimate projects net sales of $39.02 billion, representing a 12.17% rise from the previous year [2] Group 3 - Recent changes in analyst estimates for Home Depot are important as they reflect short-term business trends, with positive revisions indicating analyst optimism [3] - Estimate revisions are correlated with near-term share price momentum, which can be leveraged using the Zacks Rank system [4] Group 4 - The Zacks Rank system ranges from 1 (Strong Buy) to 5 (Strong Sell), with 1 stocks historically returning an average of +25% annually since 1988 [5] - Over the last 30 days, the Zacks Consensus EPS estimate for Home Depot has decreased by 0.33%, and the company currently holds a Zacks Rank of 3 (Hold) [5] Group 5 - Home Depot's Forward P/E ratio is 25.85, which is higher than the industry average of 20.08, indicating that the company is trading at a premium [6] - The current PEG ratio for Home Depot is 4.12, compared to the industry average PEG ratio of 2.03, suggesting a higher valuation relative to expected earnings growth [7] Group 6 - The Retail - Home Furnishings industry, part of the Retail-Wholesale sector, has a Zacks Industry Rank of 141, placing it in the bottom 44% of over 250 industries [7] - The Zacks Industry Rank indicates that the top 50% rated industries outperform the bottom half by a factor of 2 to 1 [8]

Group 1: Macroeconomic Indicators - January CPI increased by 3.0% year-on-year, exceeding expectations of 2.9% and the previous value of 2.9%, marking the highest level in seven months [7] - Core CPI rose by 3.3% year-on-year, higher than the expected 3.1% and previous 3.2% [7] - January PPI year-on-year was 3.5%, matching the previous value and exceeding the expected 3.2% [7] Group 2: Market Performance - S&P 500 index rose by 1.5% last week, while the Nasdaq China Golden Dragon Index surged by 7.3%, marking the highest increase globally [20] - Among the 36 secondary sectors in the U.S. stock market, 27 sectors saw gains, with the top five performing sectors being Electrical Equipment, Real Estate Investment Trusts, Durable Goods, Pharmaceuticals, and Household Products [23] Group 3: Company Performance - 76% of S&P 500 companies reported actual EPS above expectations, slightly below the 5-year average of 77% but above the 10-year average of 75% [5] - Notable companies with significant stock price increases include AMD, Intel, and Airbnb, contributing to the overall positive performance of the S&P 500 [26]

Group 1 - The company has an actively managed investment portfolio and regularly trades stocks based on intrinsic value estimates and market trading patterns [1] - The individual has degrees in Applied Chemistry, Accounting, and an MBA, along with a certificate in Advanced Valuation, indicating a strong educational background relevant to investment analysis [2] - The individual has held senior executive roles across various industries, including glass, building materials, consumer products, and rail transport, showcasing diverse industry experience [2] Group 2 - There is no current stock, option, or derivative position in any mentioned companies, and there are no plans to initiate such positions in the near future, indicating a neutral stance on potential investments [3] - The article expresses personal opinions and is not influenced by compensation from companies mentioned, ensuring an independent perspective [3] - Seeking Alpha clarifies that past performance does not guarantee future results and that the views expressed may not reflect the organization as a whole, emphasizing the importance of independent analysis [4]

The Home Depot Inc. (HD) stock has gained 6.1% in the year-to-date period, marking an underperformance from the broader industry’s 8.3% rise. However, it has outperformed the Retail-Wholesale sector and the S&P 500’s growth of 3.1% and 2.8%, respectively.However, the HD stock has shown remarkable growth compared with its industry peers like Lowe’s Companies Inc. (LOW) , FGI Industries (FGI) and Fortune Brands Innovations, Inc.’s (FBIN) gains of 2.4%, 4.5% and 0.1%, respectively, in the year-to-date period.H ...

Group 1: Economic Indicators and Trends - A government inflation gauge indicated a higher-than-expected rise in January, primarily driven by increased housing costs, which may negatively impact housing sales and home improvements [1][3] - The core price index rose by 0.5% in January, marking the largest increase since August 2023, with shelter contributing approximately 30% to this rise [3][4] - The housing sector is sensitive to interest rates, and higher rates typically lead to a decline in construction and renovation activities [2] Group 2: Market Reactions and Company Impact - Following the inflation report, Home Depot's stock fell by 3%, reflecting investor concerns about the potential impact of rising costs on the home improvement market [1][4] - Financial markets adjusted their expectations for interest rate cuts in 2025, moving from two anticipated cuts to one, indicating a more cautious outlook for monetary policy [4] Group 3: Company Performance and Outlook - Home Depot is recognized as a leading retailer in the home construction and renovation sector, generating significant cash flow and returning capital to shareholders through dividends and share buybacks [5][6] - Despite the challenging macroeconomic environment, Home Depot's long-term quality and potential for growth remain strong, suggesting that current investments may yield positive returns over time [5][6]

ATLANTA, Feb. 11, 2025 /PRNewswire/ -- The Home Depot®, the world's largest home improvement retailer, announced today that it will hold its Fourth Quarter & Fiscal Year Earnings Conference Call on Tuesday, February 25, at 9 a.m. ET.A webcast will be available by logging onto http://ir.homedepot.com/events-and-presentations and selecting the Fourth Quarter Earnings Conference Call icon. The webcast will be archived, and the replay will be available beginning at approximately noon on February 25.The Home Dep ...

Sales surged for Home Depot (HD -0.78%) during the pandemic. How is the stock doing now?*Stock prices used were the afternoon prices of Jan. 31, 2025. The video was published on Feb. 2, 2025. ...