16 May

Can Home Depot Maintain Its Upward Momentum?

WRITTEN BY Ralph Nathan

Stock performance

Home Depot (HD) will be reporting its first-quarter earnings results before the market opens on May 21. As of May 15, the company was trading at $191.76, a rise of 0.9% since its announcement of its fourth-quarter earnings results on February 26.

The company is also trading at a discount of 11.0% to its 52-week high of $215.43 and at a premium of 21.3% to its 52-week low of $158.09.

Can Home Depot Maintain Its Upward Momentum?

In the last quarter, Home Depot posted adjusted EPS of $2.25, outperforming analysts’ estimate of $2.16. However, its revenue and SSSG (same-store sales growth) fell short of analysts’ expectations. The company’s management blamed unfavorable weather conditions for weak sales. Despite soft sales in the fourth quarter, the company’s stock rose due to optimism surrounding its initiatives to enhance the interconnected customer experience. Also, the Fed’s toning down of its aggressive rate hike stance, the lower unemployment rate, and wage inflation have contributed to the rise in the company’s stock price.

Year-to-date performance

Year-to-date, Home Depot has returned 11.6% as of May 15. The company has been lagging the broader equity market, with the S&P 500 Index (SPY) returning 13.7% as of the same date. Home Depot’s peers Lowe’s Companies (LOW), Williams-Sonoma (WSM), and Bed Bath & Beyond (BBBY) have returned 14.5%, 5.5%, and 34.9%, respectively, as of May 15. The SPDR S&P Homebuilders ETF (XHB), which invests in home improvement and furnishing companies, has returned 23.6% YTD.

Series overview

With Home Depot’s first-quarter earnings results around the corner, in this series, we’ll look at analysts’ revenue and EPS estimates. We’ll also be covering analysts’ expectations and management’s guidance for 2019. In the end, we’ll look at analysts’ recommendations and Home Depot’s valuation multiple.

Latest articles

After opening on a bearish note on Wednesday, Tesla (TSLA) was trading with 4.8% losses for the day, near $195.25 at 1:16 PM ET.

With voting conducted in seven phases panning six weeks, India’s (EPI) elections have been a grand affair—to say the least. Tomorrow is the day of the results.

Qualcomm (QCOM) stock fell more than 10% in the first half of trading on May 22 after it lost its licensing lawsuit with the US FTC (Federal Trade Commission).

Apple (AAPL) suffered a setback recently when the US Supreme Court allowed an antitrust lawsuit against the company to proceed.

Today doesn’t seem to be a good day for electric vehicle companies. Earlier today, NIO stock hit an all-time low of $4.00.

22 May

Cannabis Stocks Struggle to Find Direction

WRITTEN BY Adam Jones

The cannabis sector has been struggling to find direction on May 22, with cannabis stocks trading on a largely mixed note in the first half.

172.31.16.229