|Bid||201.01 x 1000|
|Ask||201.04 x 1100|
|Day's range||200.21 - 201.92|
|52-week range||144.25 - 207.61|
|PE ratio (TTM)||26.12|
|Earnings date||14 Aug 2018|
|Forward dividend & yield||4.12 (2.12%)|
|1y target est||212.00|
As earning season gets underway several blue chip Dow Jones stocks are nearing buy points after building bullish bases. Apple, Boeing, American Express, Exxon Mobil and Home Depot could make strong gains in the coming weeks.
Lowe's (LOW) has long trailed main rival Home Depot (HD), but the stock, up 7.7% year to date, has been the better performer in 2018, amid management changes and upbeat earnings. The home-improvement chain can build on that progress, says Oppenheimer's Brian Nagel. Nagel rates both Lowe's and Home Depot at Outperform, but says Lowe's is his "top pick," and raised his price target on it to $140 from $115 on Friday, adding that the "stars are aligning" for the company.
The New York Stock Exchange is stirring tension between some of its big listed companies and their largest investors over regulators’ efforts to study the controversial practice of assigning fees and rebates to stock trades. The SEC, through a proposal known as the Transaction Fee Pilot, is seeking to assess how much those fees and rebates affect trading costs, and how they influence which exchanges investors choose to trade their shares, and at what prices. Both the NYSE and Nasdaq Inc. oppose the regulatory proposal, saying it is flawed and doesn’t accurately assess costs.
Americans could soon find themselves paying more for goods they might not have known were imported from China. It's a potential consequence of a new round of tariffs the Trump administration is proposing to slap on Chinese imports as soon as September. Before now, the administration had deliberately avoided imposing tariffs on consumer goods in order to spare U.S. shoppers from direct economic pain.
Home Depot (HD) stock rose 2.9% in the first half of 2018 and has risen 3.5% year-to-date. In the first quarter, the company’s SSSG (same-store sales growth) was lower than analysts’ expectation, dragging down its stock price.
Fears of the US-China trade war escalating and Amazon’s (AMZN) expansion hit home improvement and furnishing companies hard in the first half of 2018. The SPDR S&P Homebuilders ETF (XHB), which invests ~24% of its holdings in home improvement and furnishing companies, fell ~10.6% in H1 2018, while the S&P 500 (SPX) returned 1.7%.
Augmented reality could bring an additional $8 billion in revenue and "yet another competitive advantage" for Apple by the end of 2020, according to Bank of America Merrill Lynch.
Texas claims the top spot in CNBC's 2018 America’s Top States for Business rankings. The energy sector is turbocharging the state's $1.6 trillion economy.
The Nielsen Corp., which tracks TV viewing and other consumer behavior, knows the value of a buck. When Nielsen sends out survey mailers, tucked inside each envelope is a crisp dollar bill. Nielsen wants your feedback, and it learned years ago that you’re more likely to respond when compensated, even with a token sum.
Home Depot is the IBD Stock of the Day. Earnings growth has accelerated for three straight quarters. Home Depot is working on a new buy point.
The stock prices of the companies tend to rise when analysts raise their price targets, and vice versa. Of the four major home improvement companies, Lowe’s has been the most favored stock among Wall Street analysts.
Valuation multiples help investors to compare companies with similar business models. Forward PE is determined by dividing a company’s stock price by analysts’ earnings estimates for it over the next four quarters.
Dividends help investors smooth out return volatility, which is vital for cyclical companies, including home improvement retailers. Home improvement retailers’ sales depend heavily on the economy and other macroeconomic factors. Home Depot (HD) paid a quarterly dividend of $1.03 per share on June 14 to its shareholders on record as of May 31.
In the first quarter, Home Depot (HD) posted adjusted EPS of $2.08, which represented a rise of 24.6% from its EPS of $1.67 in the corresponding quarter of the previous year. Home Depot’s EPS growth was driven by revenue growth, the expansion of its net margins, and share repurchases. Share repurchases drove the company’s EPS by lowering its total number of shares outstanding.
In the first quarter, Home Depot (HD) posted a gross margin, EBIT margin, and net margin of 34.5%, 13.6%, and 9.6%, respectively. The expansion in Home Depot’s gross margin was driven by its implementation of new accounting standards, a favorable mix, and recent acquisitions. The company’s EBIT margin contracted 0.4% due to an increase in its operating expenses, which was partially offset by improved productivity in its core business.
In the first quarter, Home Depot (HD) posted SSSG (same-store sales growth) of 4.2%, lower than analysts’ consensus expectation of 5.4%.
Home Depot (HD) outperformed Lowe’s (LOW) in terms of revenue growth in the first quarter. During the quarter, Home Depot posted revenue of $25.0 billion, which represented a rise of 4.4% from its revenue of $23.9 billion in the corresponding quarter of the previous year. Home Depot’s revenue was driven by positive SSSG (same-store sales growth) of 4.2%, the addition of new stores, and new accounting standards, which contributed $33 million to its net sales.
With both Home Depot (HD) and Lowe’s Companies (LOW) having posted their first-quarter earnings results, let’s look at their performances during the quarter and compare their revenues, SSSG (same-store sales growth), margins, and EPS. In the first quarter, Lowe’s posted adjusted EPS of $1.19 on revenue of $17.4 billion compared to analysts’ consensus EPS estimate of $1.22 and revenue estimate of $17.5 billion. Despite its lower-than-expected first-quarter earnings, the company’s stock price rose due to reports of Bill Ackman’s Pershing Square Capital Management acquiring a $1 billion stake in the company.
The fear of the Trump administration escalating its trade war with China by restricting Chinese investment in US companies led to a sell-off on June 25. On the day, the S&P 500 Index (SPX) fell 1.4%, while the Dow Jones Industrial Average (DJI) fell 1.3%. Home improvement and furnishing companies have felt the heat as fears of an escalating trade war have gripped the market.