Investors still have some key earnings reports to look forward to this week. Most companies have share their results, but this week will bring a key report from Dow Jones Industrial Average (DJIA) member Home Depot Inc. (NYSE: HD), followed by rival Lowe’s Companies Inc. (NYSE: LOW). 24/7 Wall St. has included a summary of the formal earnings reports on a consensus basis and has also found a very fresh positive report issued ahead the reports from Credit Suisse on Monday morning.
Source: Thinkstock
Home Depot Inc. (NYSE: HD) is set to report earnings on Tuesday morning. The largest home improvement and construction products retailer in America has its Thomson Reuters consensus estimates of $1.45 earnings per share (EPS) and $23.6 billion in revenues. Estimates for the following quarter are $1.11 EPS and $20.5 billion in revenues. Trading at $83.69, the shares have a 52-week range is $72.21 to $84.09. The retail giant and DJIA component had a consensus price target from analysts of $90.26 on last look, and it trades at more than 16 times next year’s earnings estimates.
READ ALSO: Surprising Stocks Poised to Be Huge E-Commerce Winners
Lowe’s Companies Inc. (NYSE: LOW) is set to report earnings Wednesday morning. The home improvement materials giant has Thomson Reuters consensus estimates of $1.02 EPS and $16.55 billion in revenues. Estimates next quarter are $0.58 EPS and $13.58 billion in revenues. At $50.00 as of Friday, it has a 52-week range is $43.52 to $52.08 and a consensus price target of $52.13. Lowe’s is valued at almost 16 times next year’s expected earnings.
As far as what Credit Suisse has to say, the firm’s Gary Balter is positive on both stocks ahead of their earnings this week. His take is that retail has not been the place to be in recent weeks. Some might say it was the weather or lack of consumer sentiment, but many retailers fell short this quarter from weaker traffic. Withstanding the weather, there is a large demand for housing repair and maintenance.
Balter expects both chains to deliver at least the 4% to 5% same-store sales range. He said:
This remains the sector to be in with significant deferred spending, nice oligopoly behavior with little square footage growth, much improved in-stock and display execution, particularly from Home Depot, and more focus and likely success, albeit early, at gaining share in the Pro market.
Balter also noted that Home Depot and Lowe continue to trade at bullish valuations. He also thinks that both companies protect shareholders’ downside with a healthy cash return in the form of dividends and share repurchases.
READ ALSO: 10 Analyst Stocks to Buy Under $10 With Massive Upside Calls
Both stocks reacted positively to the news on Monday. Home Depot was up 0.75% at $84.31 shortly after the opening bell and had hit a new 52-week high of $84.62. Lowe’s was up 1% at $50.51 shortly after the open on Monday, but it was still more than $1.50 shy of its 52-week high.
Smart Investors Are Quietly Loading Up on These “Dividend Legends” (Sponsored)
If you want your portfolio to pay you cash like clockwork, it’s time to stop blindly following conventional wisdom like relying on Dividend Aristocrats. There’s a better option, and we want to show you. We’re offering a brand-new report on 2 stocks we believe offer the rare combination of a high dividend yield and significant stock appreciation upside. If you’re tired of feeling one step behind in this market, this free report is a must-read for you.
Click here to download your FREE copy of “2 Dividend Legends to Hold Forever” and start improving your portfolio today.
Thank you for reading! Have some feedback for us?
Contact the 24/7 Wall St. editorial team.
Editors' Picks
