|Bid||113.21 x 1000|
|Ask||113.67 x 900|
|Day's Range||113.15 - 115.15|
|52 Week Range||84.75 - 118.23|
|Beta (3Y Monthly)||1.43|
|PE Ratio (TTM)||35.84|
|Earnings Date||Nov 20, 2019|
|Forward Dividend & Yield||2.20 (1.93%)|
|1y Target Est||119.48|
Home Depot (NYSE:HD) stock continues to ride high. An earnings beat in its second-quarter sent Home Depot stock surging to over $232 per share an all-time high. Lower interest rates and a renewed interest in the housing market have also helped HD stock.Source: Rob Wilson / Shutterstock.com However, not all headwinds for Home Depot stock have gone away. Home prices have plateaued in many major markets. Also, an inverted yield curve and the length of the current economic growth period point to a possible recession. * 7 Discount Retail Stocks to Buy for a Recession Although HD stock remains a long-term winner, investors should not add to positions at these levels.InvestorPlace - Stock Market News, Stock Advice & Trading Tips HD Stock Is a Long-Term Winner Facing Near-Term StrugglesTaking a negative view of Home Depot stock is a difficult decision. After all, it did not grow to almost 2,300 stores and a $250 billion-plus market cap by making poor decisions. HD has delivered massive returns to investors over the last few decades and remains a solid long-term investment now.Admittedly, bulls have many signs of optimism on which to base their call. The Fed lowered interest rates over the summer, setting up the highest level of mortgage originations since 2018. Moreover, the company announced they had beaten estimates by nine cents per share on Aug. 20. This sparked a rally that took the HD stock price from about $208 per share to the approximate $232 per share level where it trades today.Furthermore, both Home Depot stock and its main peer Lowe's (NYSE:LOW) continue to show resiliency. It continues growth even as a mature company. It also has fended off any potential threat from Amazon (NASDAQ:AMZN), a company many feared would "take over retail" a few short years ago. Multiple Does Not Price in a Possible RecessionHowever, the recent rally took the forward price-to-earnings (PE) ratio to about 21.2, very close to the average PE of almost 23 it has experienced over the last five years. Admittedly, a 21.2 forward multiple is not high by S&P 500 standards. However, it seems pricey when analysts predict only 2.4% profit growth this year and 8.4% in fiscal 2021.Also, many signs point to tough times coming soon. For one, the company missed its revenue estimates. Although the market has chosen to ignore that fact, it indicates some level of struggle for the home improvement giant. Moreover, investors cannot know for sure that the economy has avoided a recession. An inverted yield curve has frequently pointed to a downturn within two years in the past.Home price growth appears mixed as well. Thanks to the lower rates, analysts forecast annual price growth of 5.4% over the next year. Still, that is an average number. Many of the larger, pricier markets such as New York or Seattle continue to see a decline in prices. Since many consider Home Depot stock a proxy for the housing market, this indicates contradiction more than growth.Further, the current economic expansion is in its 11th year. This does not mean the economy will stop growing. However, it dramatically increases the chances of a downturn. It also calls into question whether investors should pay a higher multiple for Home Depot stock in such an environment. The Bottom Line on Home Depot StockHome Depot stock has become the solid equity that investors should avoid for now. In a sense, the recent run in HD stock makes sense. Interest rates have fallen in an environment where home prices have plateaued in many major markets. Without a doubt, this increases home affordability for many.Still, the current economic expansion has become long in the tooth. Moreover, an inverted yield curve has always pointed to a recession over the last 60-plus years.Although Home Depot has matured as a company, its ability to maintain growth over the last few decades is a testament to its long-term resiliency. I still believe in the future of Home Depot stock, and I do not recommend selling at these levels, except to log some profits.However, given the current circumstances, this seems like a time where investors should try to buy Home Depot stock on the cheap, not when it trades at a higher multiple.As of this writing, Will Healy did not hold a position in any of the aforementioned stocks. You can follow Will on Twitter at @HealyWriting. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 10 Big IPO Stocks From 2019 to Watch * 7 Discount Retail Stocks to Buy for a Recession * 7 Stocks to Buy Benefiting From Millennial Money The post Hold out for a Lower Valuation Before Buying Home Depot Stock appeared first on InvestorPlace.
Lowe’s is working with Charlotte Works and Charlotte-Mecklenburg Schools for the pilot pre-apprenticeship program.
A senior White House adviser tamped down expectations on Tuesday for the next rounds of U.S.-China trade talks, urging investors, businesses and the public to be patient about resolving the two-year trade dispute between the world's two largest economies. "If we're going to get a great result, we really have to let the process take its course," Peter Navarro said on CNBC. U.S. President Donald Trump's administration is seeking sweeping changes to China's policies and practices on intellectual property protection, the forced transfer of U.S. technology to Chinese firms, American companies' access to China's markets and industrial subsidies.
While Hurricane Dorian has moved away from the Carolinas’ coastline, it left some major damage to the Outer Banks.
With an overwhelming majority of observers seeing an imminent rate cut on August's soft employment report, certain sectors stand to gain, while some will suffer. Take a look -
MOORESVILLE, N.C., Sept. 6, 2019 /PRNewswire/ -- Lowe's has committed today $1 million to support disaster relief efforts for associates, customers and communities in direct response to Hurricane Dorian's impact along the U.S. coast and the Bahamas. Lowe's will continue to work closely with nonprofit partners and government agencies to determine immediate and long-term support needed by local communities. To support customers and communities as they prepared for the storm and in the clean-up and recovery that follows, the Lowe's Emergency Command Center has expedited more than 6,000 truckloads of needed supplies, including generators, bottled water, sand, plywood, chainsaws, trash bags, gas cans and tarps.
The Zacks Analyst Blog Highlights: Norwegian Cruise, Royal Caribbean, Lowe's, Home Depot and Owens
As Hurricane Dorian hits the Bahamas, shares of cruise companies and hotels fell as tourism stalled and insurance shares dropped as the companies released money for damage relief.
When I saw the headline below last Tuesday, it made me angry. Really angry. Check this out.Source: Shutterstock A "Lehman-like" market disaster could happen this week, analyst warnsSeriously?InvestorPlace - Stock Market News, Stock Advice & Trading TipsThe analyst cited negative sentiment triggered by the inversion of the yield curve and how it correlated to 2008. (Here's the article if you really want to read it.) I think he needs to be held responsible if he's wrong.I am sick of hacks trying to make names for themselves with insane and irresponsible Doomsday Calls. Do yourself a favor and ignore them. Instead of becoming fearful with these crazy calls, now is the time to set yourself up for big profits.I think we're headed for one of the greatest "melt-ups" (as my colleague Steve Sjuggerud accurately calls it) over the next 12-18 months. The new issue of Investment Opportunities will focus on stocks that I believe will be among the leaders of that rally, and I want to give you a preview of my analysis today. Already Moving HigherLet's dispense quickly with the idea that a recession is around the corner. I shared my full market outlook with you this weekend, but I've written before about the inverted yield curve and talked about it at length in a recent MoneyLine podcast (which you can listen to here).I'll share one stat with you now: Over the last 40 years, an inverted yield curve has actually been more of a buy signal than a recession indicator. Since 1978, the market has gained 20%+ on average one year after the inversion event when the 10-year Treasury begins to yield less than the two-year Treasury.Add in the likelihood that the Fed will lower interest rates a couple more times this year, and the odds of a major rally increase.But even if you're skeptical, please don't ignore a tried-and-true buying opportunity that so many other investors are missing amid the panic.I'm talking about housing stocks. I know. They don't sound as exciting as next-generation batteries, artificial intelligence, autonomous vehicles, or personalized medicine. But who cares -- as long as they can make us money?Take a look at the iShares U.S. Home Construction ETF (BATS:ITB). It broke above $40 last week for the first time since last June. That is a potentially major breakout going back to levels from 18 months prior. It also broke out of a consolidation phase that lasted about three months.Those are two bullish technical indicators, and I see more upside ahead with very low housing stock valuations and strong fundamentals.You may not hear much about strong fundamentals in the current environment, but they're there. Home Depot (NYSE:HD) is at all-time highs, and Lowe's (NYSE:LOW) is within about 6% of its peak. Both reported solid sales growth, as did consumer bellwethers Walmart (NYSE:WMT) and Target (NYSE:TGT). This tells us that the consumer is doing pretty well, and so is the housing market.It's simple if you ignore the noise and doomsday headlines. Long-term interest rates are down, which means mortgage rates are, too. Any way you slice it, lower mortgage rates boost housing. They make homes more affordable.We already see potential home buyers on the move. Mortgage applications (the orange line below) have turned sharply higher as rates (the blue line) have fallen.Note how mortgage originations fell to their lowest level since mid-2014 earlier this year but are back on the upswing -- to their highest levels in about two years, in fact. The last time mortgage rates were this low (late 2016), mortgage originations spiked above $600 billion. What to Buy NowI look for a similar spike to occur in the next few quarters. A move from $344 billion in the first quarter to over $600 billion would be a massive 75% surge … and would light an even bigger fire under housing stocks.The opportunity is more than just low rates. There are multiple catalysts to drive housing stocks higher in the coming months, including high employment, consumers' willingness to spend, still-low valuations, and millennials buying homes as they start families. That last one is especially big and could last for years, as we are in the early stages of the greatest wealth transfer in U.S. history, from the baby boomers to the millennials.I focus a lot on cutting-edge trends and breakthroughs, like batteries that will change the way we live and communicate. That's where a lot of the life-changing gains will come from. But I don't ignore more "traditional" trends like housing when the time is right, like now.I'll have my full analysis on housing stocks and at least one related stock recommendation in the new Investment Opportunities issue this Thursday. I wanted to let you know today so you can have them on your radar, too.Matthew McCall is the founder and president of Penn Financial Group, an investment advisory firm, as well as the editor of Investment Opportunities and Early Stage Investor. He has dedicated his career to getting investors into the world's biggest, most revolutionary trends BEFORE anyone else. The power of being "first" gave Matt's readers the chance to bank +2,438% in Stamps.com (STMP), +1,523% in Ulta Beauty (ULTA), +1,044% in Tesla (TSLA), +611% in Liquefied Natural Gas Limited (LNGLY), +324% in Bitcoin Services (BTSC), just to name a few. If you're interested in making triple-digit gains from the world's biggest investment trends BEFORE anyone else, click here to learn more about Matt McCall and his investments strategy today. More From InvestorPlace * 4 Top American Penny Pot Stocks (Buy Before June 21) * 5 Safe Stocks to Buy This Summer * The 5 Best Telecom Stocks to Buy Now * 6 Innovative Stocks With Big Long-Term Growth Potential The post Housing Stocks: Surprising Picks as Leaders of the Coming Rally appeared first on InvestorPlace.
Cone Health will open a new primary care office in the Triad in the next few weeks, just as a Boston-based health care provider prepares to open three primary care facilities in the Triad. The 5,600-square-foot Cone Health location will open Oct.
Home Depot (NYSE:HD) is much like its publicly traded equity: both don't draw much attention until you need them. Put another way, Home Depot stock is usually a safe, reliable investment, but it is a tad on the boring side.Source: Helen89 / Shutterstock.com However, shares have been doing something recently that they don't usually: being interesting. While the benchmark indices like the Dow Jones have been struggling to gain traction in August, the HD stock price has put on a remarkable run. Since the first of the month, shares gained nearly 7%.But at the same time, Home Depot stock is at record levels. Typically, even the strongest and most stable names experience volatility in a market-wide downturn. Therefore, it seems unreasonable to jump aboard HD, especially when headwinds like the U.S.-China trade war and rising economic fears have gripped investors.InvestorPlace - Stock Market News, Stock Advice & Trading TipsOf course, I can understand the concerns here. But if you want exposure to recession-resistant companies, HD stock is among your best bets. Here are three reasons why: 1\. Home Depot Stock Is Insulated from AmazonIn retrospect, the late 1990s to early 2000s was the peak of American shopping malls' cultural influence. Since then, brick-and-mortar retailers had to contend with the threat of e-commerce. And when I - or anyone - refers to e-commerce, we're talking about Amazon (NASDAQ:AMZN). * 7 Best Tech Stocks to Buy Right Now You only need to look at the technical charts for traditional retailers like Macy's (NYSE:M) or Nordstrom (NYSE:JWN) to recognize the damage rendered by Amazon. Although these two names are renowned brands across high-end shopping centers, they can't escape the ecommerce onslaught. But Home Depot stock? Fortunately for stakeholders, they won't have to worry about digital disruption.The biggest reason why is that most people who shop at Home Depot do so for renovations or repairs. Neither is an exact science, which essentially insulates the HD stock price from Amazon's encroachment.From my experience with repair work done on my home, the process is a hit-or-miss affair: pipes don't quite work right, or components somehow are either too big or too small. And don't get me started on repainting the interior. I had no clue how many different shades of white existed.I say all this to illustrate a point: Home Depot's business necessitates a physical presence. In fact, going digital would be a nuisance to its millions of customers. Therefore, I'm confident that the HD stock price can hold up better than most retail names. 2\. HD Stock Benefits from Secular DemandDuring bull markets, cyclical investments like tech stocks get all the love. And that's really not a surprise. When the money is flowing, people feel comfortable tacking on greater risk. If their investments fail, hey, the money is still coming in from other sources.But in recessionary markets, Home Depot stock and its rivals like Lowe's Companies (NYSE:LOW) fare better than their high-growth counterparts. It's much easier to predict the company's revenue streams but there's not as much guesswork involved. Aside from obvious technological improvements, construction materials are construction materials.Moreover, HD stock benefits from consistent, secular demand. Yes, a recession will hurt Home Depot like it would any other company. However, consumers don't really have a choice if they the home-improvement giant's services.Again, I speak from personal experience, but I suspect your experiences aren't dissimilar: your plumbing doesn't decide to conk out based on when it's most convenient to your schedule.Plus, I actually see some potential tailwinds for Home Depot stock if we suffer a recession. For instance, home sales have been plummeting even prior to the trade war escalation. Also, the average price of homes sold has started to flatline. Understandably, people are hesitant toward exposing themselves to unnecessary financial risk.But homeowners might take advantage of this lull and focus instead on renovating their properties. Then, when housing comes back, they could reap greater returns. Invariably, such circumstances will only help bolster HD stock. 3\. Mitigating China RisksTurn on the news and chances are, you'll hear various analyses about the longer-term impact of the U.S.-China trade war. And while Home Depot stock does have a secular, insular business, it too suffers from supply chain cost increases.According to Home Depot CEO Craig Menear, the tariffs on Chinese goods will have a "cost impact" on U.S. revenue. This amounts to 2%, or $2 billion.However, the company's suppliers have thought ahead, shifting some manufacturing outside China. These location shifts are toward friendlier nations, including Taiwan, Vietnam, Thailand, even back home stateside.Of course, retailers broadly have pushed these cost increases to their customers and that worries economists. But for Home Depot stock, burdening the consumer base isn't as atrocious as it is for a discretionary-spending retailer.I go back to the point about secular demand. If your home needs repair, you're going to pay the increased material costs because you have to. While it's a cynical situation, it really does favor HD stock.As of this writing, Josh Enomoto did not hold a position in any of the aforementioned securities. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 7 Stocks to Buy Down 10% in the Past Week * 15 Retail Survivors to Buy for the Long Run * 7 Stocks That Wall Street Thinks Could Rise 50% Or More The post 3 Reasons You Should Buy into the Home Depot Stock Bump appeared first on InvestorPlace.
Home Depot's (HD) efforts to provide an interconnected shopping experience and strength in the Pro segment place it for long-term growth. A favorable economy and housing market render more optimism.
Shares of home-improvement retailers were mixed Friday, as analysts said they stand to both benefit from and potentially get hurt by Hurricane Dorian, which is expected to hit Florida over the Labor Day weekend.
Big box retailers have mobilized their quick-response distribution networks to funnel critical merchandise to stores in Florida and surrounding states expected to be impacted by Hurricane Dorian. Specialists at Lowe's Companies, Inc. (NYSE: LOW), Home Depot Inc (NYSE: HD) and Walmart Inc (NYSE: WMT) emergency operations centers are taking requests from field managers and coordinating outbound shipments of critical supplies such as flashlights, gas cans, tarpaulins, generators and extension cords.
Home-improvement retailers are expected to benefit from the initial sales boost caused by Hurricane Dorian, as residents of Florida buy generators, batteries and flashlights in preparation for the storm. But Home Depot Inc. , Lowe's Cos. and Floor & Decor Holdings Inc. also have exposure in the form of the stores that are potentially in the storm path, Jefferies analysts wrote Friday. Home Depot has 153 stores in Florida equal to 8% of its U.S. fleet, while Lowe's has 126 stores equal to 7% of its U.S., analysts led by Jonathan Matuszewski wrote in a note to clients. Floor & Decor has 18 stores, equal to 18% if its fleet. "While not all stores are in communities expected to be impacted, each retailer has clear exposure," the analysts wrote. The retailers are expected to enjoy demand for flooring once the rebuild begins after any damage, and the tailwind could be big, they wrote. Hurricane Matthew in the third quarter of 2017 lead to an initial sales lift of $100 million for Home Depot, they noted, while Lowe's cited a 60 basis point lift from weather. In the third quarter of 2019, Hurricanes Irma, Nate and Harvey generated a $282 million sales lift for Home Depot and a 140 basis-point comp lift for Lowe's. Still, "similar to past significant weather events, storm-related expenses will be incurred,' said the note. "Recall, HD reported costs of $167M to drive $650M in hurricane-sales during F'2H18, encapsulating the months Irma/Nate/Harvey hit and the next quarter. Some degree of gross margin deterioration for home improvement centers is likely given the profitability profiles of in-demand SKUs like plywood and generators." Home Depot shares were up 0.3% Friday, while Lowe's was flat. Floor & Decor rose 1.2%.