Wed, Apr. 13, 8:42 AM
- Retail sales for March were dragged lower by chain stores once again.
- Department store sales fell 0.6% M/M and 6.1% Y/Y as weak traffic trends continue to overwhelm.
- Clothing stores sales were down 0.9% M/M and were up only 0.1% on a year-over-year comparison, compared to the overall 1.7% gain in retail sales
- The category showing the most vitality during the month was building material & garden equipment with 1.4% M/M and 11% Y/Y sales gains. That trend bodes well for Home Depot (NYSE:HD) and Lowe's (NYSE:LOW).
- Previously: March retail sales miss estimates, prior months revised higher (April 13)
- Related ETFs: XLY, XRT, VCR, RTH, RETL, FXD, FDIS, RCD, PMR.
Mon, Apr. 4, 7:25 AM
- March monthly performance was: +6.95%
- 52-week performance vs. the S&P 500 is: +1%
- $0.07 in dividends were paid in March
- Top 10 Holdings as of 2/29/2016: Coca-Cola Co (KO): 4.24%, Altria Group Inc (MO): 3.5%, Microsoft Corp (MSFT): 3.45%, Apple Inc (AAPL): 3.13%, AbbVie Inc (ABBV): 2.72%, International Business Machines Corp (IBM): 2.19%, McDonald's Corp (MCD): 2.08%, Cisco Systems Inc (CSCO): 1.91%, 3M Co (MMM): 1.85%, Home Depot Inc (HD): 1.8%
Thu, Mar. 31, 12:26 PM
- Barclays is extremely active in the retail sector today. Earlier the investment firm issued negative notes on Target and Willams-Sonoma which helped send both stocks lower, but the new round of ratings actions are mostly less bearish.
- Home Depot (HD +0.5%), Best Buy (BBY +4.1%), AutoZone (AZO -0.6%), and O'Reilly Automotive (ORLY -0.6%) are both initiated with Overweight ratings.
- Party City (PRTY -0.9%), Restoration Hardware (RH +4.8%), and The Container Store (TCS -3.6%) are all started at Equalweight.
- Advance Auto Parts (AAP -0.9%) is assigned an Underweight rating and $130 price target.
- While Barclays picks and chooses between retailers on differentiation with valuation, F/X exposure, and demand trends - on a broader scale the question of when the U.S. consumer will step it up remains unanswered.
- Now read U.S. Consumer Spending And Income Growth Slow In February
Tue, Mar. 15, 8:49 AM
- Retail sales fell in February to mark the second month in a row of negative growth.
- Sales fell in key categories such as auto dealers (discounting?) and general merchandise stores (TGT, WMT, COST) in a disturbing trend, while gas station sales plummeted as largely expected due to prices.
- The building materials/garden equipment category showed strength, up 1.6% M/M and 12% Y/Y, as warmer weather helped traffic for companies such as Home Depot (NYSE:HD) and Lowe's (NYSE:LOW).
- Tepid traffic at restaurants has been a leading indicator that U.S. consumers aren't spending freely.
- Retail sector ETFs: XLP, XLY, VDC, XRT, VCR, RETL, RTH, FXG, IYK, PBJ, IYC, FXD, PEJ, FDIS, RHS, FSTA, SCC, UCC, RCD, PSL, PMR, PEZ, UGE, PSCC, PSCD, SZK, BITE.
- Previously: Retail sales slip in February, January revised significantly lower (Mar. 15 2016)
Mon, Mar. 14, 11:40 AM
- Credit Suisse can't shake off a deja vu feeling with the rally in some beat-up retail names.
- The investment firm notes that last year Dick's Sporting Goods (DKS +0.1%), GameStop (GME +2.5%), and Michaels (MIK -0.2%) staged a similar early rally before ending the year with below-par returns.
- Retailer with strong financials look more attractive to CS than comeback stores. Home Depot (HD +0.3%), Lowe's (LOW +0.3%), O'Reilly Automotive (ORLY -0.3%), and AutoZone (AZO -0.1%) are cited as examples.
Wed, Mar. 2, 6:30 AM| Wed, Mar. 2, 6:30 AM | 3 Comments
- February monthly performance was: +2.15%
- 52-week performance vs. the S&P 500 is: 0%
- $0.05 in dividends were paid in February
- Top 10 Holdings as of 1/29/2016: Coca-Cola Co (KO): 4.25%, Microsoft Corp (MSFT): 3.76%, Altria Group Inc (MO): 3.5%, Apple Inc (AAPL): 3.18%, AbbVie Inc (ABBV): 2.76%, McDonald's Corp (MCD): 2.22%, International Business Machines Corp (IBM): 2.1%, Intel Corp (INTC): 1.85%, Home Depot Inc (HD): 1.83%, 3M Co (MMM): 1.8%
Tue, Feb. 23, 9:42 AM
- Home Depot (HD +2.7%) and Lowe's (LOW +0.3%) are both higher in early trading after warm weather across the U.S. in Q4 appears to have extended fall product buying from consumers past the normal time period.
- Home Depot's 9% gain in Q4 comparable-store sales blasted past the consensus estimate for a 5% rise. That mark bodes well for Lowe's which reports tomorrow.
- A bigger trend is also in play. The home improvement chains are benefiting from a general willingness by consumers to spend on house projects and accessories over apparel. The department store sector (JCP, KSS, JWN, M, SHLD) in particular is being hard hit by the pronounced shift in consumer preferences as comparable-store sales growth continues to retreat despite some store weaning.
- Previously: Home Depot beats by $0.07, beats on revenue (Feb. 23 2016)
- Previously: Home Depot +2.6% post record Q4 results (Feb. 23 2016)
Tue, Feb. 23, 6:34 AM
- Home Depot (NYSE:HD) reports comparable-store sales rose 7.1% in Q4.
- The comp delivered for the U.S. stores was 8.9% for the period.
- Gross margin rate dropped 20 bps to 34.1%.
- SG&A expense rate declined 90 bps to 19.9%.
- Operating margin rate grew 70 bps to 12.1%.
- Merchandise inventory +6.6% to $11.81B.
- Number of customer transactions increased 5.1% to 349.1M.
- Store count +5 Y/Y to 2,274
- FY2016 Guidance: Sales growth: ~+5.1% to +6%; Comparable-store sales: ~+3.7% to +4.5%; Gross margin rate: flat; Operating margin rate: ~+70 bps; Tax rate: ~37%; Diluted EPS: ~$6.12 to $6.18 (+12% to +13%); Capex: $1.64B; Cash flow from operations: ~$10B; D&A expense: ~$1.9B.
- HD +2.6% premarket.
Tue, Feb. 23, 6:12 AM
Tue, Feb. 23, 6:01 AM
Mon, Feb. 22, 5:30 PM
Thu, Feb. 11, 11:46 AM
- There's some nervous trading on stocks associated with consumers spending money on their houses. Today's macroeconomic news and stock market decline are cutting into confidence over consumer spending patterns.
- Pier 1 Imports (PIR -7.9%), Mattress Firm (MFRM -3.1%), Tile Shop (TTS -2.9%), Lumber Liquidators (LL -5.8%), Restoration Hardware (RH -3.6%), Bed Bath & Beyond (BBBY -2.5%), La-Z-Boy (LZB -3%), Kirkland's (KIRK -2.3%), and Williams-Sonoma (WSM -2.5%) are all lower than broad market averages.
- Lowe's (LOW -1.5%) and Home Depot (HD -1.2%) are showing a milder loss.
Wed, Feb. 3, 7:43 AM| Wed, Feb. 3, 7:43 AM
Tue, Feb. 2, 9:00 AM| Tue, Feb. 2, 9:00 AM | 1 Comment
- January monthly performance was: -4.6%
- 52-week performance vs. the S&P 500 is: -1%
- $0.02 in dividends were paid in January
- Top 10 Holdings as of 12/31/2015: Coca-Cola Co (KO): 4.05%, Microsoft Corp (MSFT): 3.61%, Apple Inc (AAPL): 3.27%, Altria Group Inc (MO): 3.17%, AbbVie Inc (ABBV): 2.84%, International Business Machines Corp (IBM): 2.21%, McDonald's Corp (MCD): 2.01%, Intel Corp (INTC): 1.95%, Cisco Systems Inc (CSCO): 1.9%, Home Depot Inc (HD): 1.84%
Fri, Jan. 29, 5:47 PM
- The best-performing U.S. stock over the past 30 years is one that few have heard of: Balchem (NASDAQ:BCPC), a New York-based maker of flavorings, fumigating gases and nutritional additives for animal feed.
- Since the end of 1985, Balchem has gained an average of 26.2%/year - a total gain of 107,099% - vs.10.3% for the S&P 500.
- But with flattening profitability and shares at a lavish 27x earnings, Balchem looks expensive for now, WSJ's Jason Zweig writes.
- Over the past 30 years, 44 U.S. stocks generated cumulative total returns of 10,000% or more; the 10 behind Balchem are HD, AMGN, NKE, UNH, DHR, OTCPK:ATCD, KSU, JKHY, AAPL and MO.
Thu, Jan. 28, 10:07 AM
- A warning from the World Health Organization on the Zika virus spreading rapidly in the Americas is creating a stir.
- "The level of alarm is extremely high," said WHO director general Dr. Margarat Chan.
- The outbreak is of a particular concern in Brazil where the Summer Olympics are due to be held in August. Some airlines (LFL, GOL) could be impacted negatively.
- If Zika spreads closer to the U.S., sales of mosquito-related products could soar at companies such as Spectrum Brands (SPB +1.3%), Home Depot (HD +0.1%), Lowe's (LOW), and S.C. Johnson (similar to how cases of Ebola in the U.S. led to big sales gains at Clorox an Grainger on disinfectants).
Home Depot, Inc. is a home improvement retailer that sells building materials and home improvement products. It operates The Home Depot stores, which provides full-service, warehouse-style stores that sells a wide assortment of building materials, home improvement products and lawn and garden... More
Industry: Home Improvement Stores
Country: United States
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