|Bid||172.87 x 1400|
|Ask||172.97 x 1000|
|Day's Range||172.00 - 174.16|
|52 Week Range||158.09 - 215.43|
|Beta (3Y Monthly)||1.28|
|PE Ratio (TTM)||18.94|
|Earnings Date||Feb 26, 2019|
|Forward Dividend & Yield||4.12 (2.30%)|
|1y Target Est||203.93|
What’s in Store for Wayfair in 2019?(Continued from Prior Part)Analysts recommend “hold”As of January 15, of the 24 analysts covering Wayfair (W) stock, 38% recommend a “buy,” and 58% have a “hold” rating. Only 4% have given “sell”
What’s in Store for Wayfair in 2019?(Continued from Prior Part)Margins numbersFor the first three quarters of 2018, Wayfair’s (W) gross margin contracted 90 basis points to 23.1% mainly due to the higher cost of goods sold as a percentage of
What’s in Store for Wayfair in 2019?ExpectationsWayfair (W) is one of the fastest-growing online retailers in the US. Wayfair sells furniture and home decor through five different websites including Wayfair, AllModern, Joss & Main, Birch
# Home Depot Inc ### NYSE:HD View full report here! ## Summary * Perception of the company's creditworthiness is negative * Bearish sentiment is low * Economic output in this company's sector is expanding ## Bearish sentiment Short interest | Positive Short interest is extremely low for HD with fewer than 1% of shares on loan. This could indicate that investors who seek to profit from falling equity prices are not currently targeting HD. ## Money flow ETF/Index ownership | Neutral ETF activity is neutral. The net inflows of $9.16 billion over the last one-month into ETFs that hold HD are not among the highest of the last year and have been slowing. ## Economic sentiment PMI by IHS Markit | Positive According to the latest IHS Markit Purchasing Managers' Index (PMI) data, output in the Consumer Services sector is rising. The rate of growth is strong relative to the trend shown over the past year, and is accelerating. ## Credit worthiness Credit default swap | Negative The current level displays a negative indicator. HD credit default swap spreads are near their highest levels for the past 1 year, which indicates the market's more negative perception of the company's credit worthiness. Please send all inquiries related to the report to email@example.com. Charts and report PDFs will only be available for 30 days after publishing. This document has been produced for information purposes only and is not to be relied upon or as construed as investment advice. To the fullest extent permitted by law, IHS Markit disclaims any responsibility or liability, whether in contract, tort (including, without limitation, negligence), equity or otherwise, for any loss or damage arising from any reliance on or the use of this material in any way. Please view the full legal disclaimer and methodology information on pages 2-3 of the full report.
The latest sales figures from the paint maker could mean investors should rein in expectations for the major home improvement retailers.
Stocks are continuing to struggle with the 24,000 level on the Dow Jones Industrial Average as investors deal with various crosscurrents. Parts of the Federal government remain shuttered. U.S.-China trade talks continue to grind on as the Chinese economy shows signs of slowing. The fate of Brexit remains unknown. And the Federal Reserve seems scatterbrained, unable to decide if it's dovish or hawkish after the harrowing market environment in December. In keeping with the directionless feel, stocks opened strong on a Netflix (NASDAQ:NFLX) price hike, but it is now cutting gains as trade talks seem to have hit another impasse. Bank earnings have also been disappointing with Wells Fargo (NYSE:WFC) reporting the worst mortgage loan numbers since the financial crisis as the housing market slams into a wall. InvestorPlace - Stock Market News, Stock Advice & Trading Tips * 10 Companies That Could Post Decelerating Profits As a result, a number of iconic Dow Jones stocks look vulnerable to renewed downside pressure. Here are five such stocks to sell now: ### Caterpillar (CAT) Caterpillar (NYSE:CAT) shares look vulnerable to a reversal as CAT contends with resistance from four-months of overhead resistance. As such, CAT stock has set up a test of the recent lows near $117, which would be worth a decline of 10% from here as the U.S.-China trade talks go nowhere fast. This is poor timing for Bank of America Merrill Lynch analysts, who recently upgraded the stock to Buy. The company will next report results on Jan. 28 before the bell. Analysts are looking for earnings of $2.98 per share on revenues of $14.3 billion. When the company last reported on Oct. 23 earnings of $2.86 beat estimates by a penny on an 18.4% rise in revenues. ### Disney (DIS) Disney (NYSE:DIS) shares are suffering a sharp reversal lower, falling back below its 50-day moving average to form a "bearish engulfing" candlestick that presages more weakness ahead. Not exactly the behavior investors were looking for ahead of the opening of the eagerly awaited Star Wars theme park areas in Disneyland and Disney World. * 10 A-Rated Stocks the Smart Money Is Piling Into DIS will next report results on Feb. 5 after the close. Analysts are looking for earnings of $1.6 per share on revenues of $15.4 billion. When the company last reported on Nov. 8, earnings of $1.48 per shear beat estimates by 13 cents on an 11.9% rise in revenues. ### Goldman Sachs (GS) Shares of Goldman Sachs (NYSE:GS) have stalled out near resistance at the $180-a-share level, setting up a likely reversal that tests the lows set in late December. Financial stocks overall are showing weakness this morning after earnings results from WFC and JPM revealed problems in mortgage loan activity and fixed income trading. The company will next report results on Jan. 16 before the bell. Analysts are looking for earnings of $5.4 per share on revenues of $7.9 billion. When the company last reported on Oct. 16, earnings of $6.28 per share beat estimates by 94 cents on a 3.8% rise in revenues. ### Home Depot (HD) Shares of Home Depot (NYSE:HD) are rolling lower after testing highs previously set in November and December. HD stock is remaining below its 200-day moving average as the one-time momentum favorite succumbs to the realization that the U.S. housing market is in trouble -- plagued by a combination of higher mortgage rates, absurd pricing and impacted affordability. * 7 Video Game Stocks on Steep Discount The company will next report results on Feb. 12 before the open. Analysts are looking for earnings of $2.2 per share on revenues of $26.6 billion. When the company last reported on Nov. 13, earnings of $2.51 per share beat estimates by 24 cents on a 5.1% rise in revenues. ### JPMorgan (JPM) Shares of JPMorgan (NYSE:JPM) are struggling to stay above the $100-a-share level and remain well below their 50-day and 200-day moving averages. The company reported results before the bell. Earnings of $1.98 per share missed estimates by 21 cents on an 8.1% rise in revenues. Management cited a decline in fixed income trading revenue, which dropped 16% from last year. When the company last reported on Oct. 12, earnings of $2.34 per share beat estimates by 8 cents on a 7.8% rise in revenues. Watch for a test of the late December low as shareholders realize that loan growth and credit quality is vulnerable, setting up a 10% drop from here. As of this writing, William Roth did not hold a position in any of the aforementioned securities. ### More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 10 Companies That Could Post Decelerating Profits * 10 A-Rated Stocks the Smart Money Is Piling Into * Mizuho: 7 Long-Term Value Stocks to Buy Now Compare Brokers The post 5 Dow Jones Stocks to Sell Before Things Get Uglier appeared first on InvestorPlace.
Could Home Depot Turn Around this Year?(Continued from Prior Part)Analysts’ EPS expectationsHome Depot’s (HD) adjusted EPS grew 32.0% YoY (year-over-year) to $7.64 from $5.79 in last year’s first three quarters, driven by revenue growth, net
Could Home Depot Turn Around this Year?(Continued from Prior Part)Home Depot’s integrated retail strategyTo counter Amazon (AMZN), Home Depot (HD) has been focusing on its integrated retail strategy, One Home Depot. The strategy integrates its offline and online channels to enhance customers’ experience, which could be hard for Amazon to
Could Home Depot Turn Around this Year? (Continued from Prior Part) ## Analysts’ recommendations Of the 34 analysts covering Home Depot (HD), 73.5% recommend “buy,” and 26.5% recommend “hold.” None recommend “sell.” Their average 12-month PT (price target) of $203.93 implies a 13.7% upside from its January 11 closing price of $179.41. This month, RBC raised Home Depot’s PT from $191 to $196, while UBS lowered its PT from $220 to $200. After Home Depot announced its third-quarter earnings on November 13, Credit Suisse, Baird, Stifel, and Telsey Advisory Group cut their PTs. Bank of America Merrill Lynch downgraded the stock from “buy” to “neutral,” and lowered its PT from $219 to $195. ## Peer comparison Of the 32 analysts covering Lowe’s (LOW), 71.9% recommend “buy,” and 28.1% recommend “hold.” Their average 12-month PT of $111.86 implies a 15.0% upside from the stock’s current price of $97.30. Of the 24 analysts covering Williams-Sonoma (WSM), 4.2% recommend “buy,” 79.2% recommend “hold,” and 16.7% recommend “sell.” Their average 12-month PT of $55.50 implies a 5.4% upside from the stock’s current price of $52.81. Of the 22 analysts covering Bed Bath & Beyond (BBBY), 63.6% recommend “hold,” and 36.4% recommend “sell.” Their average 12-month PT of $13.40 implies a 12.0% downside from the stock’s current price of $15.23. ## Valuation As of January 11, Home Depot’s forward PE multiple was 17.5x, compared with 23.0x at the beginning of last year. Home Depot’s stock price decline lowered its valuation multiple. On the same day, Lowe’s, Williams-Sonoma, and Bed Bath & Beyond had forward PE multiples of 16.3x, 11.9x, and 16.3x, respectively. Home Depot’s EPS are 18.3 times analysts’ 2018 expectations, and 17.4 times their 2019 expectations. They estimate that its EPS rose 31.4% last year, and that they will rise 4.9% this year. Next, we’ll look at Home Depot’s strategies and analysts’ revenue expectations. Continue to Next Part Browse this series on Market Realist: * Part 1 - Could Home Depot Turn Around this Year? * Part 3 - How Home Depot Aims to Drive Its Sales * Part 4 - Why Analysts Expect Home Depot’s EPS Growth to Slow
Last year was tough for home improvement retailers, including Home Depot (HD), whose stock price fell 9.3%. The stock fell despite Home Depot beating analysts’ EPS expectations in the first three quarters of 2018, as investors grew skeptical about increased interest rates and the weak housing market. Weakness in broader equity markets—the S&P 500 fell 6.2%—didn’t help, either.
Some people consider Walmart (NYSE:WMT) stock to be an investment that people should buy and hold "forever." Sadly, the days of "buy and forget" are long gone for Walmart stock. While the largest retailer has plenty going for it, including seventeen straight quarters of rising comp sales and a rapidly growing U.S. e-commerce business, which gained 42% in the most recent quarter, there are just as many reasons to be cautious when it comes to WMT stock. For instance, selling, general and administrative expenses rose more than 12% between 2015 and 2018 ($93.4 billion to $104.7 billion), while revenue gained 3% ($485.6 billion to $500 billion) during that same time. Rising wages and pricey acquisitions such as its $16 billion deal for Flipkart will hurt WMT's profits for the foreseeable future. InvestorPlace - Stock Market News, Stock Advice & Trading Tips * 10 Key Emerging-Market Stocks to Buy for Contrarian Investors The average 52-week price target for the Walmart stock price is $107, which implies a 13% upside to current levels. I am not sure what the analysts are smoking given their consensus forecasts are calling for 2019 revenue growth of 2.9%. This matches last year's 2.9% sales gain ($485.6 billion to $500 billion) exactly. Notably, Walmart stock slumped nearly 6% in 2018 after going on a 43% tear a year earlier. They appear to be running on fumes. I realize that the law of large numbers applies to the Walmart stock price but there are plenty of other retail stocks that are a better choice. ### Better Bets Than Walmart Stock WMT stock trades at a forward price-to-earnings multiple of 20 which isn't particularly compelling given that peers such as Home Depot (NYSE:HD), Target (NYSE:TGT) and TJX (NYSE:TJX) are valued cheaper, offer more potential upside and are growing at a faster rate than the Bentonville, Ark.-based company. They are all worth buying despite their recent challenges. HD currently trades at roughly a 15% discount to its average 52-week price target of $204. Its forward price-to-earnings ratio is 17.3 and analysts are expecting 2019 revenue growth of 7.3% for the top home improvement chain. As the real estate market cools, the chain stands to benefit since homeowners may be willing to spend more on improving their homes as opposed to buying a new home. HD is also one of the best-run companies in the sector. To be sure, TGT took plenty of lumps in 2018. CEO Brian Cornell spooked Wall Street during the most recent quarter when he reported disappointing results as increased spending on e-commerce and higher wages eroded profit margins. The company, though, is doing fine as evidenced by comp sales, which were up 5.7% for the most recent quarter. Even with its problems, TGT is a better stock than WMT stock. * 7 Stocks at Risk of the Global Smartphone Slowdown Analysts are expecting TGT 2019 sales growth of 4.8%. The chain's forward P/E is 12.4 and TGT stock is currently trading at a discount of about 20% to its average 52-week price target of $84. Finally, there's TJX. The off-price retailer got hammered last year after posting disappointing third-quarter earnings as rising freight and labor costs eroded its profit margins. TJX, which sells top brands such as Tommy Hilfiger at rock bottom prices, continues to buck industry trends and open stores. But, thanks to its mastery of the "treasure hunt" format, TJX probably had a jolly holiday season and should fare well in an increasingly competitive retail sector TJX carries a forward P/E multiple of 18.25. Its stock trades at a discount of about 15% to its average 52-week price target of $54.40. Wall Street analysts are expecting TJX's 2019 sales to rise by 8.2%. As of this writing, Jonathan Berr did not hold a position in any of the aforementioned securities. ### More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 10 Stocks You Can Set and Forget (Even In This Market) * 10 Virtual Assistants for the Future of Smart Homes * 7 5G Stocks to Buy as the Race for Spectrum Tightens Compare Brokers The post Walmart Stock Is Still Just a Dud Compared to Other Retail Stocks appeared first on InvestorPlace.
The perennial No. 2 home-improvement chain still has room for improvement, but a souring backdrop could make for tougher times ahead
The annual Mexican National Team U.S. Tour matches are typically hot tickets, averaging approximately 63,000 fans per game during the 2018 edition.
It's been a tough stretch for shares of home improvement retailer Home Depot (NYSE:HD). In early September 2018, Home Depot stock was touching all-time highs around $215 and everything was going right for the company. Then, the U.S. economy started to cool, the Fed kept hiking interest rates and trade relations between the U.S. and China got worse. * 10 Stocks You Can Set and Forget (Even In This Market) This created a triple headwind for Home Depot stock. By Christmas Eve, Home Depot stock had dropped 25% to below $160. That was a dip worth buying. Since Christmas Eve, Home Depot stock has rallied nearly 15% to almost $180 as the macroeconomic outlook has improved. Namely, a strong December jobs report put to rest recession fears, the Fed has backed off its "must hike rates at all costs" mantra and there's optimism regarding how trade talks between the U.S. and China will play out in the new year. InvestorPlace - Stock Market News, Stock Advice & Trading Tips This recovery rally in Home Depot stock could still be in its early innings. At its core, so long as U.S. economic fundamentals remain healthy, the U.S. housing market will remain healthy too. As long as that's true, Home Depot will continue to report solid revenue and profit growth -- and Home Depot stock will rise. More than that, Home Depot continues to innovate in order to grow the company's addressable market. Most recently, this expansion includes a dive into premium home remodeling through a beta Design Center in San Diego. At scale, these Design Centers could constitute a huge growth opportunity for Home Depot. All in all, Home Depot stock looks good here. The growth trajectory remains healthy, innovation continues to drive addressable market expansion and the valuation is reasonable. As a result, this bounce back in Home Depot stock should persist for the foreseeable future. ### The Economy Remains Healthy As goes the economy, so goes the housing sector and so goes Home Depot stock. That is simply the nature of being America's largest home improvement retailer. In late 2018, there were concerns regarding a rapid slowdown in the U.S. economy which, coupled with a hawkish Fed, had the potential to spark a recession in 2019 or 2020. Home Depot stock dropped sharply on these fears. After all, in a recession, no one is spending on home improvements. Home Depot's revenues drop. Profits dry up. The stock falls. (See 2008-09, when the stock lost more than half of its value.) But such fears seem premature, at worst, and overstated at best. The December jobs report was a blowout one. The U.S. economy added more than 300,000 jobs in the last month of 2018, while wages rose in excess of 3%. The unemployment rate remained below 4% and the participation rate rose to its highest level in recent memory. Housing starts remain on a long term uptrend, while permits rose to a 7-month high in November. Consumer confidence remains robust and so does business confidence. Overall, the economy is still growing at a healthy rate. Granted, it's not the red-hot growth that we saw in 2017-18, and rising rates will continue to provide a headwind to the housing market, but, in the big picture, the economy is still doing just fine. A "just fine" economy is good enough for Home Depot to continue to report solid revenue and profit growth. ### Design Center Innovation Drives TAM Expansion An exciting element of Home Depot stock is that management continues to innovate. Such innovation drives addressable market expansion, grows the company's revenue potential and elongates the growth runway. A recent example of this innovation is the company's plunge into the high-end home remodeling market. Home Depot had a presence in this market in the 1990's and early 2000's through Expo Design Centers, which were essentially home remodeling showrooms and services that catered to an upper-income demographic. These design centers were a sharp departure from Home Depot's traditional warehouse style, and they worked well enough… until 2008. That's when the housing market crashed and Home Depot was forced to shutter its Expo unit. Now, Home Depot is jumping back in. In late 2017, Home Depot acquired high-end linen e-retailer The Company Store. A few months later, in mid-2018, Home Depot sent out an e-mail to customers, which stated the following: "Your favorite home improvement retailer is about to become your new favorite decor destination." Around the same time, Home Depot launched its first Home Depot Design Center in San Diego, and it essentially looks like an upgraded version of the Expo Design Centers from the early 2000's. Broadly speaking, over the past twelve months, Home Depot has laid the groundwork to bring back the Expo business from the dead, and re-enter what has become a very large high-end home remodeling market. Depending on who you ask, the home remodeling market is anywhere from a $100 billion market in the U.S. to a several-hundred-billion-dollar market globally. But the specifics here aren't important. The important thing is that, through innovation, Home Depot is jumping into new markets, expanding its addressable revenue pool, growing the company's long-term profit potential and elongating its growth narrative. These are all positive things that will contribute to Home Depot stock heading higher in the long run. ### Bottom Line on HD Stock Home Depot stock is a long term winner with a favorable near- to medium-term growth outlook, thanks to continued strength in the U.S. economy. * 5 Top Stocks to Trade Wednesday: Where to Buy Amazon, Tilray At 24 times forward earnings (versus a five-year average forward multiple of 25), the valuation is sensible and arguably discounted. As such, this stock's recovery rally has legs, and won't stall out at $180. As of this writing, Luke Lango was long HD. ### More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 7 Retail Stocks to Buy for Winning the Online Battle * The 7 Best Stocks in the Entrepreneur Index * 7 5G Stocks to Buy as the Race for Spectrum Tightens Compare Brokers The post The Recovery Rally in Home Depot Stock Has Legs appeared first on InvestorPlace.
The Dow - commenced 2019 on a brighter note. Positive developments on trade war front and Fed???s monetary stance are likely to boost investor sentiment in the near-term resulting in further consolidation of the index.
There is 24% upside to our price target for Home Depot Inc. (HD). We believe that the 17% pullback from its September high provides a favorable entry point, suggests analyst Chris Graja with Argus Research, a leading independent Wall Street Research firm.
Home Depot co-founder Bernie Marcus on the partial government shutdown over funding for a border wall and the state of the U.S. economy.