It has been a challenging period for the company. But it's set to be a net winner from the Trump tariffs.There's no doubt that Whirlpool (WHR 0.91%) shareholders surely feel that they missed out. The stock has significantly underperformed the S&P 500 index over the last year, the last three years, and the last five years. In fact, it has declined by 45% in the previous five years, compared to a 103% increase for the S&P 500 on a total return basis (which includes dividends). It's a highly disappointing perf ...

CNBC's Jim Cramer on Friday reviewed the stock of luxury home goods retailer RH, saying the company could succeed if the housing market strengthens. "RH is high-risk, high-reward, but it really comes down to how you feel about housing," Cramer said.The stock has been a "rollercoaster" over the last several years as CEO Gary Friedman attempted to expand the business in the face of an economic downturn and a tough housing market, Cramer said.RH started to decline about a year ago after the Federal Reserve st ...

Key Takeaways Bassett Furniture is a Zacks Rank #5 (Strong Sell) as the housing market remains depressed. While the market is challenging, Bassett still grew revenue in the third quarter by 5.9%.One estimate has been cut for 2025 and 2026 in the last 60 days. Bassett Furniture Industries, Inc. (BSET) is waiting for the housing market recovery. Will it come in 2026? This Zacks Rank #5 (Strong Sell) is in the bottom 7% of Zacks Ranked Industries.Bassett Furniture Industries operates 86 company and licensee-ow ...

The retailer expects sluggish growth in 2026, barring a housing market recovery.2025 will be a year to forget for home improvement retail giant Home Depot (HD 0.67%). Ahead of the company's investor and analyst conference, Home Depot reiterated its outlook for the full year. Comparable sales growth is expected to be slightly positive, with total sales increasing by 3% due to the opening of 12 new stores and the acquisition of building products distributor GMS.While sales are expected to grow this year, the ...

Core Insights - The housing market is currently struggling but shows signs of recovery, with easing interest rates and home prices expected to lead to improvements by 2026 [2][7] - Companies like D.R. Horton, Lowe's, and Whirlpool are well-positioned to benefit from the anticipated recovery in the housing market, with long-term stock price growth expected [3][7] Company-Specific Insights - D.R. Horton, as the largest homebuilder in the U.S., is facing revenue pressure due to falling home prices in 2025, but ongoing volume growth is crucial for sustaining cash flow and capital returns [4] - The company has reduced its share buyback forecast but still expects robust buybacks at approximately 5.8% of its late-November market cap, following a nearly 10% decline in FY2025 [5] - D.R. Horton offers a reliable dividend yielding about 1.25%, with a payout ratio below 15% of earnings, and share buybacks are expected to support per-share metrics [6] Market Sentiment - Analyst sentiment is mixed, with some price target reductions balanced by increases, but overall bullish due to institutional buying, which is more than $2 for every $1 sold in the first half of Q4 [9] - Institutional ownership exceeds 90% of D.R. Horton stock, indicating strong support for the company as it navigates the housing market recovery [9]

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 - The US housing market is currently facing challenges, with expectations of continued cooling in housing sales due to high mortgage rates and economic uncertainty [2][3]. Company Insights - D.R. Horton, the largest homebuilder in the US, anticipates that the sluggish housing sales will persist into the next year, as buyers remain hesitant [2]. - The company's average sales price for single-family homes decreased by 3% year-over-year to $365,600 in the three months ending September [6]. - D.R. Horton is utilizing incentives, such as mortgage buydowns, to attract buyers, which has reduced the company's gross profit margin by 110 basis points [6]. Industry Insights - Builder confidence, as measured by the National Association of Home Builders/Wells Fargo Housing Market Index, stands at 37, indicating a lack of optimism in the short-term outlook for the housing market [2]. - Federal Reserve Chairman Jerome Powell noted the weakness in the housing sector, which is influenced by employment concerns [3]. - The unemployment rate in the US rose to 4.3% in August, contributing to uncertainty in the job market and affecting consumer confidence and household formations [4][5].

Core Viewpoint - Oppenheimer analysts suggest that Lowe's shares may be a better investment choice compared to Home Depot's, as the market may be overly optimistic about both companies' future performance [1][2][3]. Company Analysis - Both Lowe's and Home Depot are currently trading at high prices, with anticipated soft sales in the near term due to a stagnant housing market [2][7]. - Lowe's stock price is viewed as a more realistic reflection of the housing market, and the company has greater potential for improvement compared to Home Depot [3][4]. - Oppenheimer has assigned an "outperform" rating to Lowe's with a price target of $320, which is approximately 25% above its recent closing price [4]. - Home Depot received a "perform" rating with a price target of $420, which is only about a 3% premium to its current price and below the average target of $447 from other analysts [5]. Market Context - The housing market is experiencing a decades-long low in turnover, with homeowners hesitant to move due to high mortgage rates, which may delay recovery in home improvement demand [3][7]. - Analysts expect a thaw in the housing market and a rebound in home improvement sales, but the timing of this recovery remains uncertain [2][7].

Core Thesis - LoanDepot, Inc. is positioned for potential recovery and profitability despite current challenges, driven by its tech-enabled mortgage platform and diversified revenue streams [1][5]. Company Overview - LoanDepot is a tech-enabled retail mortgage originator and loan servicer, focusing on direct-to-consumer lending and complementary revenue streams such as title, insurance, real estate referrals, and HELOCs [2]. - The company surpassed $4 billion in revenue by 2020 and employed over 12,000 people during the low-rate housing boom [2]. Current Challenges - Elevated interest rates have frozen the housing market, resulting in prolonged losses and a declining stock price [3]. - In response, LoanDepot has implemented cost reductions, headcount rationalization, and is expanding its Mello platform under the "Vision 2025" initiative [3]. Operational Improvements - Recent operational improvements indicate a move toward profitability, with net losses narrowing in Q1 and Q2 2025 compared to prior quarters [4]. - LoanDepot's business model differs from capital-intensive iBuyers, leveraging mortgage origination and servicing capabilities that are less sensitive to housing price fluctuations [4]. Key Catalysts - Potential easing of interest rates and further integration of AI and automation through the Mello platform are expected to streamline loan processing [4]. - The "North Star" initiative focuses on customer engagement and retention, with a 70% recapture rate, the highest in the industry [4]. Financial Position - LoanDepot has substantial liquidity with over $400 million in cash and $1.2 billion in available credit, minimizing dilution risk [5]. - The company is viewed as having a compelling risk-reward opportunity, especially with the housing market poised for recovery [5]. Comparative Analysis - LoanDepot's diversified revenue streams and AI-driven efficiencies are emphasized as key advantages, similar to the bullish perspective on Rocket Companies, Inc. [6].

Core Insights - The U.S. housing market is experiencing a balance between affordability challenges and pent-up demand, with optimism emerging due to easing mortgage rates and potential Federal Reserve rate cuts [1][8] Builder Sentiment - Builder confidence in newly built single-family homes remained at 32 in September, unchanged from August, with future sales expectations rising to 45, the highest since March [2][8] - 39% of builders reported price reductions in September, the highest since the post-COVID period began, with an average reduction of 5% [3][8] Economic Factors - Inflation remains a concern, with the consumer price index rising 2.9% year-over-year in August, indicating ongoing price pressures [4] - The labor market showed weakness, adding only 22,000 jobs in August, with the unemployment rate increasing to 4.3% [5] - Mortgage rates have decreased to 6.35%, the lowest since mid-October 2024, potentially reopening opportunities for sidelined buyers [6][8] Industry Performance - The Zacks Building Products – Home Builders industry gained 29.5% over the past three months, outperforming the broader Zacks Construction sector and the S&P 500, both of which increased by 12.1% [10] - D.R. Horton (DHI) has seen a 41.6% increase in stock price over the past three months, with an upward revision of fiscal 2025 earnings estimates [14] - Toll Brothers (TOL) gained 34% in the same period, benefiting from potential confidence revival among high-income households [15] - Home Depot (HD), Lowe's (LOW), and Masco (MAS) have also posted significant gains, with respective increases of 21.4%, 28.3%, and 20.4% [16][17]