Home Depot’s valuation multiple

The strengthening broader equity market in 2019 has increased Home Depot’s (HD) stock price, which has raised its valuation multiple. As of March 6, Home Depot was trading at a forward PE multiple of 18.1x, compared to 16.8x at the beginning of 2019.

Also, Home Depot was trading at 18.3 times analysts’ 2019 EPS estimates of $10.10, and 16.7 times analysts’ 2020 EPS estimate of $11.05. Its EPS are expected to rise 2.2% in 2019 and 9.3% in 2020.

Home Depot versus Lowe’s: Who Wins in Terms of Valuation?

Lowe’s valuation multiple

The optimism surrounding management’s guidance for 2019 and a new share repurchase program of $10 billion appear to have increased Lowe’s Companies’ (LOW) stock price and valuation multiple. As of March 6, Lowe’s was trading at a forward PE multiple of 16.7x, compared to 15.5x at the beginning of 2019.

Also, Lowe’s was trading at 16.9 times analysts’ 2019 EPS estimate of $6.06 and 14.6x times analysts’ EPS estimate of $6.99, with its EPS expected to rise 18.8% in 2019 and 15.4% in 2020.

Analysts’ recommendations

Of the 33 analysts who cover Home Depot, 66.7% have given the stock “buy” ratings while the remaining 33.3% favor a “hold.” None of the analysts have a “sell” rating. Analysts’ average 12-month price target stands at $203.11, which implies an upside potential of 10.1% from its stock price of $184.45 on March 6.

Of the 31 analysts who follow Lowe’s, 67.7% have given the stock a “buy” rating while the remaining 32.3% favor a “hold.” On average, analysts’ 12-month target price stands at $116.82, which implies a return potential of 14.1% from its stock price of $102.34 on March 6.

Latest articles

20 Jun

Will Refiners’ Earnings Plunge in 2019?

WRITTEN BY Maitali Ramkumar

Wall Street analysts expect refining firms' earnings to fall in 2019. Delek US Holdings (DK) and Valero Energy’s (VLO) earnings are estimated to fall less than 10% in 2019. However, the EPS of Marathon Petroleum (MPC), HollyFrontier (HFC), and Phillips 66 (PSX) are expected to fall 20%–40% this year.

After remaining tepid for the first four months of the year, gold prices have taken off in a big way. The initial impetus was provided by a tweet made by President Donald Trump on May 5, which revived trade tensions in a big way.

20 Jun

How Are Charter’s Revenues Trending in 2019?

WRITTEN BY Ambrish Shah

In the first quarter, Charter Communications (CHTR) reported total revenues of $11.2 billion—a rise of 5.2% year-over-year and $7 million ahead of the consensus estimate.

This morning before the market opened, Tesla (TSLA) was trading on a negative note despite a sharp rise in index futures. As of 9:10 AM ET, Tesla stock had fallen 1.2% in the pre-market session to $234.74 after Goldman Sachs cut the target price on the company by about 21%.

The US-China trade war has already given a scare to Apple’s (AAPL) investors vis-à-vis the possibility of a 25% tariff on Apple goods being imported from its Chinese facilities. As a result, Apple might be considering shifting its plants out of China.

Yesterday, Greenlane Holdings (GNLN) fell a whopping 17.1%. The stock has now fallen 28% this month, and it hit its all-time low yesterday. Greenlane Holdings listed in April and priced its IPO at $17 per share. However, since the stock surged more than 25% after its listing, it has been a sorry story for Greenlane Holdings investors.