Key Issue 1: Confidence in comp guidance for the back-half of the year
Key Issue 2: Confidence in margin guidance for the back-half of the year
Key Issue 3: Closing the HD/LOW Gap
Key Issue 4: Invest in HD or LOW?
Read MoreKey Issue 1: Confidence in comp guidance for the back-half of the year
Key Issue 2: Confidence in margin guidance for the back-half of the year
Key Issue 3: Closing the HD/LOW Gap
Key Issue 4: Invest in HD or LOW?
Read MoreHome Depot is a widely admired company on Wall Street. Overall sentiment among Wall Street analysts is bullish, with the majority of analysts holding largely positive views on the stock. While there aren't many bears, there are analysts that believe the stock has run its course. Below are the key issues that these analysts are talking about.
Read MoreWhile its sexier competitor Home Depot gets all the attention, LOW is an interesting play at current levels. Lowe's currently trades at a similar multiple to Home Depot despite having a stronger outlook on earnings. The key to the story is whether LOW will be able to achieve its guidance (set forth by management) for the year.
Read MoreLast week, Home Depot reported 1Q15 results that exceeded consensus estimates and raised the low end of their guidance for the full year. The highlights for the quarter included a 7.1% US comp, online growth of nearly 30%, and continued margin expansion.
Read MoreHome Depot recently reported 4Q results that were above expectations and were well received by investors. The company is executing at a high level and appears to have all of the momentum behind it. However, with the stock up 41% over the last year, Home Depot's stock no longer appears to be an obvious buy as the risk/reward starts to balance out. I'll discuss the details and other thoughts on the strong quarter below.
Read MoreIf you follow a major company, you may have noticed that the stock will sometimes move based on an analyst's upgrade/downgrade on the stock. And within that upgrade/downgrade, analysts will often set a mysterious target price for the stock, with no discussion of how they calculated that price. How do they get to it?
Read MoreWhy is price appreciation and housing turnover so important for home-related stocks? I detailed why housing turnover is important in a previous post. I'll go into the reasons why home prices have a halo effect on housing purchases here.
Read MoreIf you own a home-related stock like Home Depot or Williams Sonoma, you may see the stock react sharply around the 25th of each month. You might also see this happen if you own an appliance retailer like Best Buy or a mattress company like Tempur-Pedic. These moves tend to coincide with the release of a macroeconomic data point called existing home sales. What is this metric, and why is it so important for so many companies?
Read MoreI detail takeaways from Home Depot's 3Q earnings results.
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