May 19, 2014, 5:30 PM
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Apr. 19, 2014, 10:00 AM
- An uptick in the housing market, market-share gains at the expense of struggling Sears, and substantial supply-chain improvements could be the catalysts for a near-25% rise in Home Depot (HD) over the next year, writes Avi Salzman in a Barron's cover story.
- The stock price is up just 6% Y/Y, sharply lagging both the S&P 500 and Lowe's (LOW). Its 17.4x P/E ratio slightly trails that of Lowe's despite more impressive earnings. As Lowe's has relied on promotions and new stores in the years following the housing bust, Home Depot - under the leadership of Frank Blake who came to the CEO spot just ahead of crash - has moved to cut costs, close underperforming units, and improve customer service, and since mid-2009 has consistently posted same-store sales gains higher than Lowe's. In 2013, comp-store sales grew 6.8% at HD, the best print since 1999.
- Home Depot has the best management team in the business, says Credit Suisse's Gary Balter, and ROE has shot up to 35.5% - roughly twice that of competitors - from 22.2% when Blake took over and began reorganizing the supply chain.
Apr. 14, 2014, 9:32 AM
- Retail sales showed some vibrancy in March led by solid gains from building material and garden equipment sellers (HD, LOW) and general merchandise chains (COST, WMT, CASY, TGT). A revision to February's retail sales mark also bodes well for the retail sector.
- Sales at electronics and appliciane stores (BBY, CONN, HGG) moved in the wrong direction during the month, falling 1.6% M/M and 0.7% Y/Y.
- Related ETFs: XLY, XRT, VCR, RTH, RETL, IYK, FXD, FDIS, PMR, UGE, RCD, PEZ, SZK, PSCD
Mar. 21, 2014, 2:12 PM
- Black Friday is back at Wal-Mart (WMT +1.9%) which aims to take a piece of the home improvement business from Home Depot (HD +0.7%) and Lowe's (LOW +0.1%) with today's slashing of prices and expanded offerings in its outdoor living and garden segments.
- In other news, the AP reports Wal-Mart's rolling out of an online tool allowing shoppers to compare its prices on 80K items with competitors.
Mar. 19, 2014, 9:02 AM
- Consumer product stocks are well-represented on a list of the top growth stocks at reasonable prices from UBS.
- The list from the investment firm is based on companies which show quality metrics, solid earnings growth potential, and reasonable valuation. 24/7 Wall St. took it one step further by filtering the UBS list for the top dividend payers.
- Coca-Cola (KO), Colgate-Palmolive (CL), and Home Depot (HD) all make the quality growth roll call along with surprise entry Starbucks (SBUX).
Mar. 6, 2014, 9:19 AM
- Wedbush forecasts home sales will increase at a low single-digit pace in 2014 on a broad cyclical trend that could cut into momentum for housing-related stocks.
- The investment firm turns cautious on Home Depot (HD) with a PT cut to $78 - while Lumber Liquidators (LL) and Bed Bath & Beyond (BBBY) are downgraded to Neutral.
- Earlier: Wedbush chips away at Lowe's
Mar. 5, 2014, 9:06 AM
- A recent poll by the Wall Street Journal and NBC indicates 63% of American support raising the minimum wage.
- Though the Republicans are expected to challenge anything brought to the floor of the House, there's a growing consensus in DC that some minimum wage legislation will eventually pass.
- Democrats argue that the current minimum wage level of $7.25 per hour is low by historical standards when adjusted for inflation.
- Related stocks: CAKE, CBRL, CMG, DNKN, DPZ, DRI, EAT, JACK, MCD, PNRA, RRGB, RT, SBUX, SONC, WEN, BWLD, THI, BDL, NATH, CEC, LUB, BKW, CHUY, BLMN, PZZA, TXRH, DENN, KKD, BBRG, DFRG, BOBE, RUTH, IRG, DIN, AEO, ANF, ARO, BBBY, BJ, CHS, COST, DG, DLTR, GPS, HD, JCP, JWN, KR, KSS, LOW, LB, NDN, ODP, PIR, PLCE, RSH, SPLS, SWY, TGT, TJX, URBN, WMT
Mar. 2, 2014, 3:05 AM
- Newly promoted Home Depot (HD) executive Craig Menear is the favorite to succeed Frank Blake as CEO of the home-improvement chain, Bloomberg reports.
- Menear was elevated to president of Home Depot's U.S. retail division as part of a succession plan for Blake, who will turn 65 in July. There's no timeline for when the latter would leave his job.
Feb. 26, 2014, 2:44 PM
- Three Senate Democrats have broken away from Majority Leader Harry Reid's $10.10/hour line in the sand on minimum wage legislation.
- Mary Landrieu of Louisiana, Mark Pryor of Arkansas, and Mark Warner of Virginia have all tipped off that they think there could be some room to negotiate over the amount of an increase over the current federal minimum wage of $7.25/hour. The GOP likes the status quo, but is viewed as likely to give some ground in an election year.
- Federal minimum wage legislation could create higher costs in the retail and restaurants sectors as companies adjust to the new higher floor.
- Last week, Gap made a preemptive move to raise its own hourly wage in a development that stirred the pot a little bit.
- Related stocks: CAKE, CBRL, CMG, DNKN, DPZ, DRI, EAT, JACK, MCD, PNRA, RRGB, RT, SBUX, SONC, WEN, BWLD, THI, BDL, NATH, CEC, LUB, BKW, CHUY, BLMN, PZZA, TXRH, DENN, KKD, BBRG, DFRG, BOBE, RUTH, IRG, DIN, AEO, ANF, ARO, BBBY, BJ, CHS, COST, DG, DLTR, GPS, HD, JCP, JWN, KR, KSS, LOW, LB, NDN, ODP, PIR, PLCE, RSH, SPLS, SWY, TGT, TJX, URBN, WMT.
Feb. 25, 2014, 9:18 AM
- Shares of Home Depot (HD) are higher after the company topped estimates with its costs firmly under control.
- The company's performance in maintaining store traffic during a tough weather period is even more impressive considering the tough comparable it came up against with Superstorm Sandy recovery a significant factor a year ago.
- HD +2.0% premarket, while rival Lowe's (LOW) is getting a 1% sympathy boost. Lowe's has its turn to release Q4 numbers tomorrow.
Feb. 25, 2014, 6:48 AM
- Home Depot (HD) reports that comparable-store sales rose 4.4% in Q4.
- Comp sales in the U.S. rose 4.9% during the period.
- Total expenses fell 4% in Q4 to $4.43B as the company lightened up on SG&A costs.
- For FY14, Home Depot sees sales growth of 4.8% and operating margin expansion of 70 bps. EPS is expected to land at $4.38.
- HD +0.4% premarket
Feb. 25, 2014, 6:03 AM
Feb. 25, 2014, 6:01 AM
Feb. 25, 2014, 12:05 AM
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