|Bid||0.00 x 3000|
|Ask||95.49 x 1000|
|Day's range||92.68 - 95.03|
|52-week range||81.16 - 117.70|
|Beta (3Y monthly)||1.57|
|PE ratio (TTM)||21.17|
|Earnings date||27 Feb 2019|
|Forward dividend & yield||1.92 (1.98%)|
|1y target est||111.86|
Will Marvin Ellison’s Initiatives Spark a Turnaround for Lowe’s?(Continued from Prior Part)Analysts’ 2018 EPS expectations In the first three quarters of 2018, Lowe’s Companies (LOW) posted adjusted EPS of $4.30, a rise of 17.8% from $3.65 in
Will Marvin Ellison’s Initiatives Spark a Turnaround for Lowe’s?(Continued from Prior Part)Lowe’s strategiesAfter strategically reassessing its business, Lowe’s Companies’ (LOW) management announced during the company’s third-quarter
Will Marvin Ellison’s Initiatives Spark a Turnaround for Lowe’s?(Continued from Prior Part)LOW’s valuation On January 16, Lowe’s Companies (LOW) was trading at a forward PE multiple of 15.7x. In comparison, Lowe’s was trading at a discount
Will Marvin Ellison’s Initiatives Spark a Turnaround for Lowe’s?LOW’s performance Last year was a tough one for home improvement retailers. The SPDR S&P Homebuilders ETF (XHB), which tracks home improvement and furnishing companies, fell
Why Home Depot Stock Is Down TodayAnalysts’ recommendationsToday, JPMorgan Chase cut its price target for Home Depot (HD) to $203 from $208. The new target represents a potential upside of 14.7% from its January 16 closing price of $177.04.Other
The latest sales figures from the paint maker could mean investors should rein in expectations for the major home improvement retailers.
Could Home Depot Turn Around this Year?(Continued from Prior Part)Analysts’ EPS expectationsHome Depot’s (HD) adjusted EPS grew 32.0% YoY (year-over-year) to $7.64 from $5.79 in last year’s first three quarters, driven by revenue growth, net
Could Home Depot Turn Around this Year?(Continued from Prior Part)Home Depot’s integrated retail strategyTo counter Amazon (AMZN), Home Depot (HD) has been focusing on its integrated retail strategy, One Home Depot. The strategy integrates its offline and online channels to enhance customers’ experience, which could be hard for Amazon to
Could Home Depot Turn Around this Year? (Continued from Prior Part) ## Analysts’ recommendations Of the 34 analysts covering Home Depot (HD), 73.5% recommend “buy,” and 26.5% recommend “hold.” None recommend “sell.” Their average 12-month PT (price target) of $203.93 implies a 13.7% upside from its January 11 closing price of $179.41. This month, RBC raised Home Depot’s PT from $191 to $196, while UBS lowered its PT from $220 to $200. After Home Depot announced its third-quarter earnings on November 13, Credit Suisse, Baird, Stifel, and Telsey Advisory Group cut their PTs. Bank of America Merrill Lynch downgraded the stock from “buy” to “neutral,” and lowered its PT from $219 to $195. ## Peer comparison Of the 32 analysts covering Lowe’s (LOW), 71.9% recommend “buy,” and 28.1% recommend “hold.” Their average 12-month PT of $111.86 implies a 15.0% upside from the stock’s current price of $97.30. Of the 24 analysts covering Williams-Sonoma (WSM), 4.2% recommend “buy,” 79.2% recommend “hold,” and 16.7% recommend “sell.” Their average 12-month PT of $55.50 implies a 5.4% upside from the stock’s current price of $52.81. Of the 22 analysts covering Bed Bath & Beyond (BBBY), 63.6% recommend “hold,” and 36.4% recommend “sell.” Their average 12-month PT of $13.40 implies a 12.0% downside from the stock’s current price of $15.23. ## Valuation As of January 11, Home Depot’s forward PE multiple was 17.5x, compared with 23.0x at the beginning of last year. Home Depot’s stock price decline lowered its valuation multiple. On the same day, Lowe’s, Williams-Sonoma, and Bed Bath & Beyond had forward PE multiples of 16.3x, 11.9x, and 16.3x, respectively. Home Depot’s EPS are 18.3 times analysts’ 2018 expectations, and 17.4 times their 2019 expectations. They estimate that its EPS rose 31.4% last year, and that they will rise 4.9% this year. Next, we’ll look at Home Depot’s strategies and analysts’ revenue expectations. Continue to Next Part Browse this series on Market Realist: * Part 1 - Could Home Depot Turn Around this Year? * Part 3 - How Home Depot Aims to Drive Its Sales * Part 4 - Why Analysts Expect Home Depot’s EPS Growth to Slow
Last year was tough for home improvement retailers, including Home Depot (HD), whose stock price fell 9.3%. The stock fell despite Home Depot beating analysts’ EPS expectations in the first three quarters of 2018, as investors grew skeptical about increased interest rates and the weak housing market. Weakness in broader equity markets—the S&P 500 fell 6.2%—didn’t help, either.
The perennial No. 2 home-improvement chain still has room for improvement, but a souring backdrop could make for tougher times ahead
Lowe's (LOW) announces plans to hire more than 65,000 associates this year to improve customer service and product availability.
Among the 34 analysts that follow Home Depot (HD), 73.5% recommended a “buy” as of December 21, while 26.5% recommended a “hold.” On the same day, analysts set a target price of $204.79, which represents a return potential of 27.6% from Home Depot’s current stock price of $160.48.
Will 2019 Be Better for Home Depot and Lowe’s? Dividends help smooth out return volatility for shareholders especially for home improvement retailers, which are cyclical. Home Depot (HD) and Lowe’s (LOW) have a strong history of returning cash to shareholders.
Analysts expect Lowe’s (LOW) to post revenues of $15.8 billion in the fourth quarter, which would take the total to $71.44 billion—4.1% growth from $68.62 billion in 2017. For the same period, the company’s management has set the revenue growth guidance at 4.0% with SSSG (same-store sales growth) of 2.5% and the addition of eight home improvement stores.
Will 2019 Be Better for Home Depot and Lowe’s? In the fourth quarter, analysts expect Home Depot (HD) to post revenues of $26.63 billion. For 2018, Home Depot’s management has set a revenue growth guidance of 7.2%, which accounts for one extra week of operations in 2018.
Will 2019 Be Better for Home Depot and Lowe’s? Home Depot (HD) posted an EPS of $7.64 in the first three quarters of 2018—an increase of 32.0% from $5.79 in the first three quarters of 2017. Revenue growth, expanded net margins, and share repurchases drove the company’s EPS during this period.