Mon, May 18, 3:03 PM
- Goldman's sees the S&P 500 hitting a mid-year high of 2,150 by mid-year, but fading to 2,100 by year-end after the Fed hikes rates. Its 12-month forecast of 2,125 stands against the current level of 2,130.
- With appreciation returns expected to be nil, Goldman suggests having a look at its dividend growth portfolio - a sector-neutral basket of 50 stocks. They have a median yield of 2.5% and are expected to boost payouts by 16% this year and 12% in 2016. The group's P-E ratio is 15 vs. 17.3 for the S&P 500.
- The ten highest-yielding additions: Harley-Davidson (NYSE:HOG) - with a 2.3% yield, Home Depot (NYSE:HD) - 2.1%, Dr. Pepper Snapple (NYSE:DPS) - 2.5%, National Oilwell Varco (NYSE:NOV) - 3.6%, Regions Financial (NYSE:RF) - 2.3%, Baxter International (NYSE:BAX) - 3.1%, Cummins (NYSE:CMI) - 2.4%, Seagate Technology (NASDAQ:STX) - 3.9%, International Paper (NYSE:IP) - 3.1%, AES Corp (NYSE:AES) - 3%.
- Looking over a ten-year horizon, Goldman expects dividends to account for 46% of the S&P 500's 5% annualized return, up from 20% during the current bull market which started in 2009.
- ETFs: DVY, SCHD, ADX, SDOG, DLN, DHS, FDL, DTD, FVD, DVYL, SDYL
Sat, May 16, 10:28 AM
- The retail sector jumps into the spotlight next week with heavyweights Target (NYSE:TGT), Home Depot (NYSE:HD), Lowe's (NYSE:LOW), and Wal-Mart (NYSE:WMT) all scheduled to report Q1 earnings.
- Retail sales in the U.S. have only recovered slightly in March and April after dropping off from December to February. The flat M/M reading for April deflated the theory that cold weather and a West Coast port slowdown was holding back growth. Many of the rosy forecasts over the impact of sub-$3 gas prices have also been wadded up.
- The spotlight is now back on the consumer with some some economists reviving classic Milton Friedman behavioral economics to explain the cautious spending trend - while others point to the millennial generation which is online and thrifty.
- E-commerce accounted for over half the growth of U.S. retail sales in Q1 with a tally of $80.3B (+14.5% Y/Y). The Big 4 reporting this week will all talk e-commerce and others ways they are adapting away from the pure brick-and-mortar model.
- Earnings conference calls from the quartet should be illuminating as analysts focus on Wal-Mart's new partnership with Alibaba and free shipping service, Target's grocery ambitions, Home Depot's pro/contractor business, and Lowe's view on SG&A.
- Related ETFs: XLP, XLY, VDC, XRT, VCR, RTH, RETL, FXG, PBJ, IYK, IYC, FXD, PEJ, FDIS, RHS, FSTA, SCC, UCC, RCD, PMR, PEZ, UGE, PSL, PSCC, PSCD, SZK.
Fri, May 1, 9:30 AM
- Xuhua Zhou, who raised the original red flag on Lumber Liquidators' floors back in 2013, says Lowe's (NYSE:LOW) floors are riddled with the same formaldehyde issues that sent LL's stock into a tailspin after the infamous 60 Minutes segment on March 1.
- Independent tests show that one of Lowe's floors scores 10x the allowed formaldehyde threshold. To put that in context, 60 Minutes tested 31 samples from Lumber Liquidators; Lowe's Chocolate Cherry Hickory would have been the third worst of all 31 samples. The results from Lowe's were 1.134 ppm. The CARB 2 threshold is 0.11 ppm.
- 60 Minutes seems to have taken Global Community Monitor's testing of Home Depot (NYSE:HD) and Lowe's products at face value, and did no independent testing. Still, Zhou's research suggests that Home Depot's flooring is CARB 2 compliant.
- Source: Lowe's Laminate Flooring May Have Issues Similar To Lumber Liquidators'
- Note: LOW puts were 20x more active than usual yesterday
- Got a news tip or analyst note you'd like to see us cover? Send it to firstname.lastname@example.org.
Thu, Mar. 26, 4:40 PM
- Home Depot (NYSE:HD) says it entered an agreement with a 3rd party to buy back $850M worth of the company' stock under an accelerated share repurchase plan.
- The disclosure was part of Home Depot's 10-K filing which also included a rundown of the buybacks during the most recent quarter.
- HD +0.4% after hours.
Tue, Mar. 24, 8:07 AM
- HD Supply Holdings (NASDAQ:HDS) reports higher sales during all three months of its Q4 with growth peaking in January at 8.8%.
- The company saw its gross profit rate improve 10 bps to 28.8% during the quarter with category management initiatives factoring in.
- The operating income rate was up 130 bps.
- "February sales were impacted by persistent winter weather conditions resulting in certain branch and distribution center closures across the country in the second half of the month," warns HD Supply.
- Guidance: Q1 sales of $2.175B-$2.230B expected. Adjusted EBITDA in a range of $195M to $207M forecast. More details will be included in the conference call.
- Home Depot (NYSE:HD) still holds a minority stake in HD Supply.
- Previously: HD Supply beats by $0.01, misses on revenue
Fri, Mar. 20, 4:46 AM
- Despite headwinds including macroeconomic trends, adverse weather and the West Coast port slowdown, Home Depot (NYSE:HD) is maintaining a strong outlook for the remainder of 2015, its CEO Craig Menear told CNBC's Closing Bell.
- "If you look at our performance last year...we set record performance, highest retail sales in our company history," said Menear. "The majority of our growth in our stock has been driven by performance and the fact that we have great product."
- Home Depot's stock surged 45% in the past 52 weeks.
Fri, Mar. 6, 8:03 AM
- A light bulb has gone off with some large retail chains such as Wal-Mart (NYSE:WMT) and TJX Companies (NYSE:TJX) which have hiked low-level wages in order to improve employee retention rates.
- The math as compiled by Bloomberg is pretty compelling: The average retail sales worker makes $21,140 a year, while it costs $3,400 in training costs to replace them. At a high turnover rate it becomes more economical to lift wages.
- The development is interesting to economists pondering the future impact of Wal-Mart's (10% of all retail sales in the U.S.) new wage structure on U.S. unemployment rates.
- Related stocks: YUM, MCD, KR, TGT, SHLD, HD, WBA, LOW, GPS, JCP, BLMN.
Mon, Mar. 2, 11:20 AM
- Home Depot (HD +1.5%) and Lowe's (LOW +1.3%) are out ahead of market averages after problems at Lumber Liquidator were highlighted during last night's episode of 60 Minutes.
- The two home improvement chains were spared in the 60 Minutes piece and are seen as potentially picking up some business.
- Builders FirstSource (BLDR +2%) is also bringing in some buyers.
- Previously: Lumber Liquidators -14% after 60 Minutes expose
- Previously: 60 Minutes report on Lumber Liquidators is as bad as feared (Mar. 01 2015)
Tue, Feb. 24, 7:55 AM
- Analysts are finding a lot to like from Home Depot's (NYSE:HD) Q4 report and 2015 guidance.
- The home improvement retailer's sizzling 7.9% comp during the quarter flew past the consensus analyst mark of 5.4%.
- The company also ended with a clean inventory position amid a solid pricing trend.
- Traffic was up over 5% Y/Y in a sign that bodes well heading into the spring season.
- Home Depot (HD) is up 3.77% premarket to $116.50, while Lowe's (NYSE:LOW) is showing a nice 1.99% gain off the solid report from its peer.
- Previously: Home Depot beats by $0.11, beats on revenue
- Previously: More on Home Depot's Q4
Tue, Feb. 24, 7:09 AM
- Home Depot (NYSE:HD) reports comparable-store sales rose 7.9% during Q4 and 5.3% for the year.
- The comp delivered in the U.S. was 8.9% for the quarter & 6.1% for the fiscal year.
- Total operating expenses increased 2.3% to $4.532B during the period, led by a 2.5% rise in SG&A expenses.
- Operating margin rate improved 148 bps to 11.43%.
- Merchandise inventory +0.20% to $11.08B.
- FY2015 Guidance: Sales growth: ~+3.5% to +4.7%; Comparable-store sales: ~+3.3% to +4.5%; Gross margin: flat; operating margin: +60 bps; Tax rate: ~37%; Diluted EPS: $5.11 to $5.17; Share repurchase: ~4.5B; Capex: ~$1.6B; D&A: ~$1.8B; Cash flow from operations: ~$9.0B; New stores: 6.
- HD +3.09% premarket.
Tue, Feb. 24, 6:22 AM
Tue, Feb. 24, 6:03 AM
Mon, Feb. 23, 5:30 PM
- AIXG, ALKS, AMT, BMO, CBRL, CEQP, CLDT, CLDX, CMCSA, CMLP, COT, CRNT, CRZO, CYRN, DAKT, DCI, DPZ, DRH, DYAX, ECL, EXAS, EXLS, EXPD, FDML, GLDD, GTLS, HD, IART, IPXL, M, MNKD, NEO, ODP, PCRX, PF, PLL, RLGY, SAFM, SAH, SHLX, SHOO, SPAR, SPWR, SUI, THRM, TOL, TREX, TRXC, UTHR, VAL, VSI, WEN, WIN, WLK, WPC, ZINC
Wed, Feb. 18, 1:21 PM
- Ace Hardware has rolled out a pilot same-day delivery service at 33 stores.
- Customers are charged $5 for a delivery placed online from a location within 5 miles of a store.
- The company will consider launching the service nationally if the pilot program goes well.
- Home Depot (NYSE:HD) launched a same-day shipping program late last year which aims to significantly increase the number of orders received by customers within two days.
- Ace Hardware has 4.6K stores compared to Home Depot's 2,266 locations and Lowe's 1,836 (NYSE:LOW) outlets in North America.
Thu, Feb. 12, 9:43 AM
- The read on retail sales in the U.S. isn't nearly as bad as the headline -0.8% M/M drop for January.
- Retail sales were up 3.3% compared to a year ago with a few sectors showing strong growth.
- Restaurant sales +11.3% Y/Y: The strong read follows up on a positive report from Black Box Intelligence on the sector. CAKE, CBRL, CMG, DPZ, DRI, EAT, JACK, PNRA, RRGB, RT, SBUX, SONC, WEN, BWLD, BDL, NATH, LUB, CHUY, BLMN, PZZA, TXRH, DENN, KKD, BBRG, DFRG, BOBE, RUTH, IRG, DIN, HABT, NDLS, PLKI, LOCO, YUM, KKD, TAST, GTIM, FRSH, COSI, FRS, PBPB, FRGI, QSR, CBRL, BLMN, ZOES.
- Sporting goods +8.0% Y/Y: DKS, BGFV, CAB, HIBB, SPWH.
- Building material and garden +6.9% Y/Y: A favorable weather compare came to the aid of this category. HD, LOW, LL.
- Health and personal care +6.6% Y/Y: Online channels have contributed for companies selling beauty and health items. ULTA, SBH, CVS, WBA, RAD.
Tue, Feb. 10, 8:05 AM
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