Home Depot earnings, sales top Street estimates as shoppers flock to its stores
Home Depot (HD) just showed Wall Street how it can buck the latest negative trends in retail, reporting Tuesday that more shoppers visited its stores during the first quarter than what was anticipated.
The retailer’s earnings and revenue for the period topped analysts’ expectations, and Home Depot also raised its fiscal 2017 profit outlook. Shares of the stock traded up near 2.5 percent in premarket hours following the report.
Dow’s Home Depot Earnings, Sales Rise More Than Expected
Home improvement retailer Home Depot (HD), a Dow Jones industrial average component, reported first-quarter earnings on Tuesday that topped Wall Street forecasts. Estimates: Earnings per share of $1.62, up 12.5%, on a 4% revenue increase to $23.759 billion. Results: EPS of $1.67 as revenue grew 4.9% to $23.887 billion.
Global same-store sales rose 5.5% vs. a year earlier, topping views of 4%. U.S. comps advanced 6%, over forecasts for 4.3%. Outlook: Home Depot raised its full-year EPS target to $7.15 from $7.13, citing expected stock buybacks. Analysts have expected $7.20.
Home Depot Just Blew It Out of the Water While the Rest of Retail Keeps Falling Apart
With mall retailers such as Sears Holdings Corp. (SHLD) and J.C. Penney (JCP) seemingly on their deathbed, Home Depot (HD) once again proves why it pays to sell lumber and nails right now.
On Tuesday, the home improvement retailer said first quarter earnings grew 16% to $1.67 a share, easily beating Wall Street forecasts for $1.52 a share. Same-store sales rose 5.5%, ahead of analyst projections for 3.9% growth. Home Depot saw growth in both the number of transactions and the average amount spent by shoppers.
The company lifted its full year earnings outlook to $7.15 a share from $7.13 a share previously.
Today’s Trading Lesson…
7 Day Trading Rules that Instantly Put Money in Your Pocket
There are so many moving parts, it’s easy to get seduced into the action. The action is what we crave, but it’s patience that pays the bills. We need day trading rules because we can’t predict the market.
You may think you can, but trust me, you can’t. Nobody can. What you can do however, is know exactly what you are going to do. This is where the money is.
The more specific your rules, the more consistent your P&L will be. Take that to the bank. Let’s dive into my trading rules. Leave a comment if you agree, disagree or simply want to add your own rules to the conversation…
On the Tape Today | 5-16-17
WYNN-Wynn Resorts sitting at the sweet spot for reward potential, but this trade requires flawless discipline. False breakouts in this stock are common, but when they follow through the risk is worth the reward. Game planning a $126.15 buy-stop, and an ultimate target on a new swing trade long of $135.50. Stop loss on a close below $125.
Tape Reading the SPY ETF
$SPY price action traded according to yesterday’s game plan. Hope you took our call and held your longs, a little longer.
A close over $240 gives us a solid reference point for this morning. Volume came in lighter than I would have liked (60 million shares) but at least we saw follow through and a close near the highs. My game plan for today focuses on that $240 level. Getting long below this obvious level isn’t smart.
The number is too obvious.
New buyers initiated buy-stops, and the early short sellers have a stop loss. Too much can happen with the algorithms here. We need to force price to get away from this level. If you don’t, you stand a solid chance of getting stopped out several times without price moving.
The short sale is the wrong trade, the long needs to trade above $240. Let the day begin…
Stock Market Today: Heatmap of the S&P 500
Stocks to Trade 5-16-17 | Tuesday Edition
Bullish Momentum: NVDA, CC, KMX, JNJ, AAL, UAL
Bearish Momentum: car, viab, hog, bhi
Long-Term Order Flow
Bullish Order Flow: CC, KMX, UAL, CAT, EA, MAR, AMT, MCHP, AVGO, ADSK, DXC, MA, BABA, CRM, HLT, XLNX, UNP, MCD, DE, MPC, ADBE, COST, ETN, WYNN, COH, HD (earnings), UTX, RH, FB, AAPL, CTRP, AMZN, BA, AET, NFLX, GRUB, AAOI
Bearish Order Flow: car, viab, tsco, tsn, eqt, x, ibm, clr, akam, dfs, esrx, twlo
2X Normal Volume: SNAP, EXAS, ROST
Inside Days: ge, intc, mrk, jnpr, nwl, teva, gps, jwn, bmy, mos, esrx, mlco, cvs, lb, aaoi, gsk, lvs, bby, twlo, bbby
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