Ulta Beauty (ULTA) stock rose 4.6% to $286.42 on March 10, 2017, in reaction to the company’s impressive results for fiscal 4Q16.
Share prices generally move in tandem with analyst recommendations. As analysts raise their next-12-month target prices, stock prices may also increase.
Dividends help smooth out return volatility for shareholders. This effect is more important for cyclical companies, including the home improvement sector.
Investors should look at valuation multiples when they’re deciding whether to enter or exit a stock.
In 4Q16, Home Depot (HD) posted a gross margin, EBITDA (earnings before interest, tax, depreciation, and amortization) margin, and net margin of 34.0%, 15.4%, and 7.9%, respectively.
Now that we’ve discussed revenue growth and profitability, let’s discuss EPS (earnings per share) growth for Home Depot (HD) and Lowe’s (LOW).
In 4Q16, Home Depot (HD) posted SSSG of 5.8% with growth in transactions contributing 2.8% while the rise in the average ticket size contributed 2.9%.
Analysts expect Home Depot (HD) to post revenue of $99.0 billion for 2017, a rise of 4.6% from its 2015 revenue of $94.6 billion.
In 4Q16, Home Depot (HD) posted revenues of $22.2 billion, an increase of 5.8% from $21.0 billion. During the same period, Lowe’s (LOW) revenue rose 19.3% to $15.8 billion.
In this series, we’ll look at the 4Q16 performance of Home Depot and Lowe’s in terms of key metrics and analyst estimates for the next four quarters.
In the auto industry, sales at the beginning of a year typically remain low. In the first two months of 2017, US auto sales fell 1.4%.
In 4Q16, Tesla delivered 22,200 vehicle units, reflecting a YoY jump of about 27%.
In fiscal 2016, Volkswagen sold about 322,948 vehicle units in the US market with a YoY decrease of about 7.6% from 349,440 units sold in fiscal 2015.
In 2016, America Honda Motor sold about 1.6 million units in the US market, a YoY increase of 3.2%.
The Jeep and Ram brands are the key strengths of Fiat Chrysler’s (FCAU) US product portfolio.
In fiscal 2016, Toyota Motor (TM) sold ~2.4 million vehicle units in the US market, down 2.0% from ~2.5 million units sold in fiscal 2015.
Fiat Chrysler’s US car sales fell 20% year-over-year in February 2017 while its truck sales rose 4% YoY.
As GM’s key brand, Chevrolet’s retail sales rose 2.8% year-over-year to 125,207 vehicle units.
In February 2017, General Motors’s retail vehicle sales stood firm at 188,715, 5% higher than its retail sales in February 2016.
In February 2017, Ford’s F-Series truck US sales stood at 65,956 units with a YoY increase of ~9%.