Home Depot was a mistake but selling it now would compound it. Why we're hanging on
Home Depot shares on Tuesday worked their way modestly higher after a down open on a quarterly update that was just OK and a status quo outlook. Revenue for the first quarter ended May 3 advanced 4.8% year over year to...
S&P 500 (SPY) Temmuz'da (DÜŞÜK) 730 Doları vuracak mı?
An important development from the financial markets: Home Depot shares on Tuesday worked their way modestly higher after a down open on a quarterly update that was just OK and a status quo outlook. Revenue for the first quarter ended May 3 advanced 4. 8% year over year to $41.
77 billion, outpacing the $41. 52 billion expected by LSEG. Earnings per share (EPS) declined 3.
Economic Details
43, but exceeded the $3. HD YTD mountain Home Depot YTD We're sticking with Home Depot for now, but the unfavorable rise in market interest rates leaves us with no choice but to cut our price target on the stock to $360 per share from $420. Investors are not going to pay up as much for a housing play tied to mortgage rates when rates are rising.
We're reiterating our hold-equivalent 2 rating . Bottom line Despite beating on the top and bottom lines, quarterly same-store sales came up short. Those results, against the backdrop of rising bond yields, were good enough to keep the stock from declining even further.
At this point, we'll take it. But, as Jim Cramer has said repeatedly before and after the print, we do regret getting involved with this name in the first place. It's not so much a management issue, though we do think the team at Lowe's is doing a better job lately.
Analyst Views
We'll know for sure when Lowe's reports earnings on Wednesday morning. A quick look at the stock charts of Lowe's and Home Depot shows investors are not rewarding the execution at Lowe's much more than they are at Home Depot. It's just that this is as bad an operating environment for housing-related stocks as we have seen in decades.
Why we own it Home Depot is a best-in-class operator with about 55% of sales coming from serving professionals and 45% from do-it-yourself homeowners. While the operating environment has not been the best over the past couple of years due to elevated interest rates, management has been making smart moves to beef up Pro. Competitors : Lowe's Portfolio weighting: 2.
59% Most recent buy: Nov. 18, 2025 Initiated : Sept. 9, 2024 On the post-earnings call, Home Depot CEO Ted Decker said, "We are probably all spending too much time in economics in the home improvement industry these days.
Financial markets are tracking the development closely as investors assess the likely impact.
