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32 6 Panel Home Depot
The Home Depot Inc. is slated to address third-quarter balance on Tuesday afore the aperture alarm and hurricanes Harvey, Irma and Maria are acceptable to appearance up.
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KeyBanc Capital Markets analysts anticipate the division will get a addition from “hurricane-related demand,” agnate to the 2004 blow season, in which Home Depot HD, -1.54% and battling Lowe’s Cos. LOW, -1.09% got a 100 basis-point sales advance afterwards four storms addled the southeastern allotment of the country.
Damages this year are estimated at about $285.0 billion. Analysts acclaimed that Home Depot has 27 food in the greater Houston breadth and Lowe’s has 25.
“We accept that both Home Depot and Lowe’s could address about a 200 basis-point sales lift because the magnitude, costs, and the absorption of accident in Florida and Texas, the two key markets for Home Depot and Lowe’s,” KeyBanc wrote in a note.
KeyBanc ante Home Depot banal area weight.
The banal has an boilerplate ample appraisement and boilerplate amount ambition of $173.28 from 32 FactSet analysts, according to about 5% upside from its accepted trading level.
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Here are some things to watch for:
Earnings: FactSet expects Home Depot to address balance per allotment of $1.82, up from $1.60 aftermost year.
Estimize, a software belvedere that crowdsources estimates from buy-side analysts, sell-side analysts, hedge-fund managers, academics and others, expects EPS of $1.84.
Revenue: FactSet expects acquirement of $24.54 billion, up from $23.15 billion aftermost year.
Estimize forecasts sales of $24.55 billion.
Stock reaction: Home Depot shares are up 6.8% for the aftermost three months, and up 27.3% for the aftermost year.
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The S&P 500 basis SPX, -0.55% is up 19.4% for the accomplished 12 months while the Dow Jones Industrial Boilerplate DJIA, -0.59% is up 24.3% for the period.
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What to watch for:
A November 2017 appraisement assay that UBS analysts conducted involving 178 items showed Amazon.com Inc. AMZN, -0.89% was 1.3% added big-ticket than Home Depot.
“We anticipate this highlights that the promotional ambiance is abiding and aggressive amount accomplishments are modest,” analysts said.
UBS additionally believes that warmer temperatures in September and October helped home advance retailers, authoritative added alfresco projects possible.
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UBS assay showed customer spending was “strong” at these retailers during the third quarter.
UBS has a buy appraisement on Home Depot and Lowe’s stock.
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“We see little change to the story, as the aggregation continues to account from advantageous appeal trends, a abiding accretion beyond its markets, accretion absorption with Pros, able omnichannel growth, and abundant operational initiatives,” wrote Credit Suisse analysts in a agenda afterward affairs with Home Depot executives.
Analysts led by Seth Sigman said the aggregation has the befalling to advance the double-digit EPS advance it needs for the banal to outperform. UBS ante Home Depot shares beat with a $171 amount target.
KeyBanc analysts said Home Depot is at a lower accident from e-commerce in the near-term and has the calibration for advance investments.
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“Nevertheless, potentially alveolate added retailers, we catechism if Home Depot will charge to access its investments accustomed accelerating e-commerce sales added broadly and attending to the December analyst day for added details,” analysts wrote.
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