I am looking for a new long term darling and wondering how all you stalwarts with HD feel about current pricing levels. Are we over priced here ? What are the earnings projections for 99,00 and beyond. With rates this low and housing so robust , can this be anything but a good investment? Any info would be appreciated....ready to buy.
A strong Euro means higher rates for the US. When a country runs a trade deficit and a budget deficit(and we are despite what the administration says), it is dependent on foreigners accepting and holding its currency. The only reason the dollar is willingly held is because it is the reserve currency. If the Euro provides competition for the dollar, our inerest rates must rise to induce people to hold dollars(buy bonds). The Euro began trading today and the dollar is down, interest rates are up, and interest rate stocks, like HD, are getting hit.
gotten ahead of itself. We might have a rough ride for some time. If you are a long-term investor, you will make money with HD but if you are a trader, I'd stay away for now.
The PE of HD, based on this year's earnings may be in the low 30s but the currently used PE is about 60 and when the fiscal year ends, they will use a PE in the upper 40s.
Earnings are growing about 30% a year. The current stock price reflects next year's earnings. If the stock continues to climb like it has over the past two years, I'll be a happy camper but I really expect the stock to move in a range for most of 1999.
Of course, I'm only a school teacher and I use a bowling ball for my crystal ball. I am only guessing what will happen. Like everyone else, I cannot see the future.